BlackRock pays Capital Property Funds $56.63 million for Parramatta office

The agents promoted the potential of the corner site to be replaced with something much taller.

A fund controlled by BlackRock – the world’s largest asset manager – is paying $56.63 million for a Parramatta office with redevelopment potential.

The KPMG building at 91 Phillip Street was listed in July by Capital Property Funds, which paid $30 million for it in 2015.

The nine-storey complex with ground level retail space and parking for about 120 vehicles contains 6094 square metres of lettable area.

With the potential to earn annual rent of about $2.9 million, the building is trading on a market yield of 5.1 per cent.

As well as KPMG, occupiers in the 33 year old glass complex include Regus, Knight Frank and Cunningham Lindsey. Law firm Maurice Blackburn is set to move in early next year.

The office sits on a 2193 square metre corner block zoned B3 Commercial 3 which was marketed for its potential to be replaced with something more substantial (artist’s impressions of a possible proposal, left).

Charter Hall, Dexus, GPT, Mirvac and Walker Corporation are amongst the other property giants developing in Parramatta, often dubbed Sydney’s second city. The suburb is about 23 kilometres west of the CBD.

Capital Property Funds was represented by Savills Simon Fenn, Graeme Russell, Ben Azar and Tim Grosman with Cushman & Wakefield’s Steven Kearney and Mark Hansen.

Earlier this month, the boutique fund manager paid $32.35 million for a 15-storey office at Brisbane’s 110 Eagle Street.

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Marc Pallisco

Marc Pallisco

A freelance property writer and analyst, Marc is a co-founder of realestatesource.com.au.

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