Centuria sells Parramatta office tower for $105 million

Centuria Property Funds Limited has announced that contracts have been exchanged to sell 2-10 Wentworth Street, Parramatta, NSW for $105.3 million.

Settlement is expected to occur in Q1 CY2020. The A-grade office tower was purchased in December 2014 for $45.1 million.

Commenting on the sale of the property, Centuria joint-CEO Jason Huljich said, "when we purchased Wentworth Street in December 2014, our view was that the Parramatta office market was poised to benefit from a number of positive factors, including improving infrastructure links, the decentralisation of NSW government departments, and the overall gentrification of the area."

“At the same time, A-grade office vacancy was below 1%, which we believed could support stronger tenant appetite for quality office properties, which in turn would mean upward pressure on rents – which the Parramatta market has seen in recent years,” he said.

Over the past five years Centuria completed leasing transactions over 90% of the property (9,807 sqm) and achieved sizable rental growth – from an average of approximately $497 per sqm gross at acquisition to $617 per sqm gross at sale – an increase of 34%.

Mr Huljich explained that Centuria has a strong focus on creating value for unitholders, by maintaining close relationships with tenants and actively responding to their needs.

“Quality tenants underpin the strong, reliable income streams,” he said.