Dexus, CPPIB exit $145m office with soccer pitch
Dexus and the Canada Pension Plan Investment Board have quietly sold a prominent Sydney office with a podium configured as a mini soccer pitch.
The partnership is banking $145 million – a 7.8 per cent net passing yield – for 101 George Street, Parramatta.
William Phillips’ Sandran Property Group is the buyer.
The Sydney-based private investor holds an east coast portfolio; last year realestatesource.com.au reported it bought a suburban Brisbane office from Centuria. In 2020 it acquired a Penrith warehouse from Visy.
The Parramatta result is against a $154m book value, which assumed a 7.5 per cent capitalisation rate.
Dexus and CPPIB each held a half stake, seizing it with the 2014 takeover of the $3 billion Commonwealth Property Office Fund.
Then, the office was valued at $128m.
101 George Street
Covering 3635 square metres at the south-west corner of Charles St, 101 George St contains 18,100 square metres of A-grade area over nine levels, with a 5-star NABERS Energy rating (continues below).
About 60pc is occupied by the Department of Home Affairs.
The weighted average lease expiry is 3.2 years.
There are also 290 car parks, swank end-of-trip facilities, balconies to each floor and a podium fitted out as an enclosed outdoor sports field and alfresco dining area.
Colliers’ John McCann, Adam Woodward, and James Mitchell with CBRE’s James Parry and Mitch Noonan brokered the off-market deal.
Colliers Chris Baltussen and Janelle Coorey are managing the leasing campaign for the 1400 sqm 10th floor.
The office is about 500 metres from Parramatta station, which is about 24 kilometres west of Sydney’s CBD.
Dexus and CPPIB are also seeking to sell a jointly owned office at Sydney Olympic Park.
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