Singaporean groups Tong Eng Group and Roxy-Pacific Holdings have acquired the NSW Aboriginal Land Council’s building in Parramatta for $40.8 million on a 5.3 per cent yield.
Previously known as the Ernst and Young Building, the nine-level B-grade office building spans a 2046sq m site and comprises around 5,247sq m of NLA.
Parramatta’s office market has continued to see strong demand for quality office space amid low vacancy.
The two groups purchased the building under entity TE2 Roxy Argyle Pty Ltd, which is 60 per cent owned by the private investment company of Tong Eng Group, led by Teo Tong Lim, and 40 per cent owned by Roxy Pacific Holdings.
Knight Frank’s Wally Scales and Mark Litwin brokered the deal at 33 Argyle Street, a property which is said to offer value-add potential.
Litwin said the sale represents the continuing strength of the Western Sydney market.
“The property is centrally located in Parramatta’s CBD, the economic heart of Western Sydney, providing convenient access to the abundance of Parramatta’s public transport links and amenities, including Westfield, Parramatta Square and the Parramatta Light Rail, which is due to become operational in 2023,” Litwan said.
Scales said the office building was one of the last remaining Parramatta sites with repositioning potential.
“The purchaser was attracted to the near term rental uplift prospects from refurbishment, as well as the future redevelopment potential when proposed changes to the Parramatta LEP rezone to site to B3 Commercial Core and increase the FSR to 10.”
Tong Eng Group Director Emilia Teo said the purchase was in line with the group’s focus to deliver good investment value for shareholders.
“We are pleased to have bought this building from the NSW Aboriginal Land Council (NSWALC) and are extremely glad that the proceeds from the sale of the property will contribute to NSWALC’s ongoing business and investment operations for the continuing benefit of Aboriginal people in NSW,” Teo said.
Knight Frank’s latest Parramatta Office Market report showed strong investment activity over the past 18 months with yields tightening across prime and secondary markets.