Centuria sells Parramatta office tower for $105 million

Centuria sells Parramatta office tower for $105 million
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.

Parramatta Office Tower

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