GPT Announces $1.6 Billion Parramatta Office Precinct
Following the acquisition of four properties and the amalgamation of the site, the GPT Group is planning two 60- and 35-story office complexes in Parramatta.
The vintage stables at 2/85 George Street and the properties at 81 George Street, 83 George Street, 1 Barrack Lane, and 1 Barrack Lane were reportedly purchased for $90 million and will form a district with an end value of $1.6 billion.
This is in addition to the group's $75 million purchase of 87-91 George Street and the heritage-listed Perth House last year.
This results in a continuous land holding of roughly 6500sq m in Parramatta, which was targeted as part of the company's $3.5 billion development pipeline in August.
The proposed district, which is now in the design competition process, will add 125,000 square meters of office space to the Parramatta CBD over two stages.
A courtyard around the ancient buildings and the city's largest fig tree was incorporated in the plans to create an entertainment sector with food and beverage options.
Martin Ritchie, fund manager of the GPT Wholesale Office Fund, said it was an exciting opportunity for the fund.
“The Parramatta CBD market is in a major transition with significant private sector investment coinciding with strong state government infrastructure investment, including the Parramatta light rail, Sydney Metro West, Western Sydney Airport, and significant urban and road upgrades,” Ritchie said.
“We see Parramatta as an attractive alternative to the Sydney CBD market for tenants, given the improved accessibility and amenity Parramatta has, and will increasingly have to offer, as the area continues to grow.”
Stage one of the plan, which includes the higher skyscraper, is expected to be lodged and authorized by the end of 2022, with construction beginning in 2024.
The GPT Group has existing office holdings in Parramatta, including the 32 Smith Street tower, which was recently finished, and the Eclipse Tower, which is located at 60 Station Street.
The George Street office precinct joins GPT's development pipeline, which includes Melbourne's 51 Flinders Lane and 300 Lonsdale Street, Sydney's Cockle Bay Park and the junction of George and Bathurst streets, and Brisbane's Skygarden.
To move forward with its 300 Lonsdale and Cockle Bay Park projects, the organization is looking for pre-commitments.