The New South Wales Aboriginal Land Council (NSWALC) has sold 33 Argyle Street, Parramatta, for $40.8 million, under a deal negotiated by Knight Frank’s Wally Scales and Mark Litwin.

Previously known as the Ernst and Young Building, the B-grade office building comprises circa 5,247 square metres NLA across nine levels with a tenant mix that includes Property NSW, the Aboriginal Legal Service and NSWALC.

The new owner is TE2 Roxy Argyle Pty Ltd, which is 60% owned by the private investment company of Teo Tong Lim, Group Managing Director of Tong Eng Group and 40% owned by Roxy Pacific Holdings.

NSWALC Chief Executive Officer James Christian said the sale aligns with NSWALC’s investment strategy to ensure financial sustainability for future generations and positions Council for serious growth. “This sale will allow Local Aboriginal Land Councils to be strong and financially independent of government and able to invest in future community success.”

Director of the Tong Eng Group, Ms Emilia Teo, said “Parramatta's office market continues to see strong demand for quality office space amidst little or no vacancy. This is bolstered by the NSW Government's continued infrastructure plans for rail and road connections that will cement Parramatta firmly as Sydney's second CBD. We are confident that 33 Argyle St is well positioned to capture positive rent reversion and reposition itself as a future mixed use development site.”

Western Sydney offers enticing growth story for investors

Knight Frank’s September 2018 Parramatta Office Market Brief confirmed strong investment activity over the past 18 months in Parramatta.

Mr Litwin, Associate Director, Metropolitan Sales, NSW for Knight Frank said the sale represents the continuing strength of the Western Sydney. 

“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.”

According to Mr Scales, Director, Metropolitan Sales, NSW for Knight Frank, 33 Argyle Street received strong interest from domestic and offshore private investors attracted to the Parramatta growth story.

“As one of the last remaining B-grade office buildings with repositioning potential in Parramatta, the purchaser was attracted to the near term rental uplift prospects from refurbishment, as well as the future redevelopment potential.”

“The report found that the Parramatta vacancy rate was 3.2% as at July 2018, well below the 10 year average of 7.3%. With the majority of future developments in Parramatta pre-committed, it is forecast vacancy will remain tight at circa 3% over the next 12 months,” said Mr Scales.

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