Chinese lock eyes on Parramatta and Chatswood
Asian investment groups and local funds managers are tipped to chase buildings across Sydney’s suburbs this year with major centres including Chatswood and Parramatta on the radar.
The Zenith building on Sydney’s North Shore is being sold by Centuria and US funds group BlackRock for over $400 million.
The asset is one of the first major towers to hit the block and comes ahead of the likely offer of two North Sydney towers by Oxford Properties Group.
Commercial Insights: Subscribe to receive the latest news and updates
Altis Property Partners might also bring two A-grade buildings in St Leonards to market later this year, industry players said.
For now, The Zenith complex is the largest offer. It comprises two A-grade towers spanning 44,102sqm and will be sold by Knight Frank and CBRE.
The A-grade tower has 21 levels and is occupied by tenants including Property NSW, the federal government, Lendlease and Sage, giving it a weighted average lease expiry of 4.4 years.
The property is being marketed by Knight Frank’s Tyler Talbot and Ben Schubert and CBRE’s Michael Andrews and Scott Gray-Spencer.
Talbot says the complex is expected to receive significant interest from both local and offshore investors. “It provides a unique opportunity to acquire a premium landmark asset with a strong tenancy profile and significant untapped growth and value-add potential,” he says. The buildings were near Chatswood station and the metro line, as well residential developments, Andrews says. “Chatswood has evolved into a dynamic mixed-use precinct, characterised by major commercial, retail and residential developments, while the government’s continued investment into infrastructure has reinforced the suburb’s position,” he says.
Meanwhile, in Parramatta, Singapore-listed Raffles Education Corporation is selling an office tower at 1 Fitzwilliam St.
The group held talks to sell the building to listed real estate trust Propertylink last year for $82 million but the deal did not go ahead.
Colliers International’s John McCann and James Barber and Cushman & Wakefield’s Steven Kearney and Mark Hansen are now marketing the property.
The seven-level building spans 9677sqm and counts Parramatta Council, Education Centre of Australia and Queensford College as tenants.
Crone Architects have undertaken a feasibility study of the site.
This article originally appeared on www.theaustralian.com.au/property.
