The City of Parramatta is paying $64 million for an office abutting its Wentworth Street Car Park.
The commercial investment, 9 Wentworth St, was offloaded by Mayrin after 22 months.
The vendor, directed by William Wu, who is under 30, paid $64.25m to Charter Hall, which held it in the Direct PFA Fund.
Based on the net passing annual income ($3.76m), the deal with council reflects a 5.7 per cent yield.
9 Wentworth Street, Parramatta
On 1627 square metres, 9 Wentworth St was developed in 1988.
It contains an 87-bay basement car park and ground floor foyer.
Six upper storeys contain 7650 sqm of lettable A-grade office area (story continues below).
The property is fully leased to the federal government; the Department of Home Affairs occupies 62pc.
The Weighted Average Lease Expiry is about three years.
Council is expected to move into the building upon parts becoming vacant; it could also redevelop its holding – the shire is understood to have been looking for a replacement office to occupy since vacating its former base, which is now demolished for Parramatta Square.
Colliers’ John McCann with Knight Frank’s Tyler Talbot and Dominic Ong represented Mayrin.
“The building…is strategically positioned only minutes walk from Parramatta’s Rail and Bus Interchange…Parramatta’s famous Eat Street and the Parramatta Square commercial development, transforming Parramatta into Sydney’s second CBD,” Mr Ong said.
Earlier this week Scentre was granted permission to build a 47 level tower at Westfield Parramatta, which is also nearby.
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