A seven-storey office building at 9 Wentworth Street, Parramatta has been sold by Charter Hall Direct PFA to a private investor for $62.6 million

Constructed in 1988 and situated in the Western Precinct of Parramatta near Parramatta Railway Station, the property includes a net lettable area (NLA) of 7,651 square metres, 87 basement car spaces and a site area of 1,627 square metres.

The building has a 5 Star NABERS energy rating and 4 Star NABERS water rating.

The tower is 94 per cent occupied, with three major tenants: the Commonwealth of Australia (62 per cent NLA), Australian Business Academy (16 per cent NLA) and Australian College of Nursing (16 per cent NLA), with the retail proportion currently vacant (6 per cent NLA), however subject to a Heads of Agreement.

The net passing income of the asset is $3.57 million.

The headline sale price was $64.25 million and the net figure after deduction of outstanding lease incentives was $62.6 million.

Charter Hall Direct CEO, Steven Bennett, described the sale as an "excellent result" for investors.

 “The sale price is 15.9 per cent in excess of the 30 June 2019 independent valuation and a premium to what was expected as a 31 December independent valuation.”

“The transaction is consistent with the Fund’s strategy of holding long-WALE (weighted average lease expiry) assets.

"The WALE of 9 Wentworth Street is 3.6 years, whilst the average WALE for the overall Fund portfolio prior to the sale was 7.9 years, thereby providing accretion to the portfolio WALE.

“The proceeds of the sale will be reinvested into high-quality assets with longer WALEs like the recently announced acquisition of a $165 million Macquarie Park new office complex leased to the NSW government on a long 12-year lease term."

Following the sale of 9 Wentworth Street, Charter Hall Direct PFA Fund holds 14 office properties throughout Australia with an overall portfolio WALE of 8.1 years. The current income yield for new investors is 7.0 per cent per annum.

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