Marprop reinvests in Parramatta market with office tower purchase
Marprop Real Estate Partners has acquired an office tower in Sydney’s Parramatta for a little more than $42 million as it looks to re-enter the commercial market in the western suburb.
The property, which settled this week, was acquired from a private vendor. At the purchase price of $4,282 per square metre, it reflects a fully leased yield of 9.6 percent.
The 126 Church Street building has a net lettable office area of about 9,800 square metres over 12 levels of office space plus ground floor retail and basement parking.
Marprop sold its 93 George Street, Parramatta asset for $38 million in December 2015.
Marprop CEO, James Marshall, said, “This transaction fits Marprop’s value-add investment criteria. It has excellent repositioning potential to apply the active management skills for which our company is known and we look forward to engaging with existing and prospective tenants as we reposition the asset.”
The building is located opposite Westfield’s super regional shopping centre and adjacent to Parramatta’s transport hub. According to Marshall, Parramatta is currently one of the strongest performing CBD office markets in Australia.
“Parramatta is expected to continue to benefit from strong tenant demand and the current major infrastructure investment which includes the new light rail and Parramatta Square,” he added.
John McCann of Colliers International brokered the deal.
