Procurement News Notice |
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| PNN | 6970 |
| Work Detail | The Salvation Army is selling its Parramatta site to take advantage of the strong office market, where premium grade vacancy rates are close to 1 per cent, the lowest in the country. Parramatta is undergoing one of the biggest urban renewal programs in its history, with the Civic Square alone costing about $2 billion. There are three new hotels and Scentre? Group has lodged a proposal with the local council for an 80,000-square-metre office tower above its Westfield Parramatta shopping centre. Walker Corporation and DEXUS? Property are also investing in the area, which has a range of tenants from education to government and the private sector. Under the deal, three buildings that are now owned and occupied by the Salvation Army as office and church hall accommodation are up for sale by JLL's regional director, sales and investments in NSW John Macree? and associate director Michael Binskin?, in conjunction with John Surian, managing director of Raine & Horne Commercial Parramatta. The 2438-square-metre site sits at the corner of 93-95 Phillip Street and 32 Smith Street, with redevelopment potential of the site extending to about 28,037 sqm. The agents declined to comment on the price, but similar sites have reached close to $30 million in the past. In another deal, a historic sandstone cottage in the Parramatta CBD is being offered by Mr Macree, Mr Binskin and JLL manager Dylan McEvoy. Known as Perth House, the 368 sqm site at 85 George Street was built in about 1841 and has price expectations of over $1.7 million. Mr Macree said the Salvation Army site will appeal to a range of users, but it is expected to be redeveloped as a mixed-use hotel or serviced apartments and a commercial site to take advantage of the attractive 10:1 floor-space ratio. "This will be one of the first commercial development sites offered outside the council-led Town Square precinct in Parramatta for some time," Mr Macree said. "Its position as a gateway to Parramatta CBD will provide strong incentive to commercial developers and institution-backed investors, whom we expect to see strong interest from, due to the exceptionally low vacancy of 1 per cent in the prime CBD office market." Mr Binskin said Parramatta is cementing its position as Sydney's second CBD with the council-driven Town Centre Projects, key infrastructure, retail and attractions heading its way, including the Powerhouse Museum and the more recent announcement that short film festival Tropfest will establish itself there for coming years. Mr Surian said that over the past couple of years the focus and interest had been on mixed-use, residential high-rise opportunities within the Parramatta CBD. This has led to the withdrawal of commercial stock, putting further pressure on vacancies. "There is now strong demand and interest in commercial development - the strongest I have seen it in 43 years in Parramatta," he said. |
| Country | Australia , Australia and New Zealand |
| Industry | Real Estate |
| Entry Date | 15 Oct 2016 |
| Source | http://www.smh.com.au/business/property/parramatta-office-market-in-hot-demand-20160906-gr9w6h.html |
