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The GPT Group is planning two towers of 60 and 35 levels as part of an office precinct in Parramatta after securing four properties and amalgamating the site.
The properties at 81 George Street, 83 George Street, 1 Barrack Lane and the heritage stables at 2/85 George Street were reportedly purchased for $90 million and will form a precinct with an end value at $1.6 billion.
This adds to the group’s $75-million holdings at 87-91 George Street and the heritage-listed Perth House which it purchased last year.
This creates a continuous land holding in Parramatta around 6500sq m which was earmarked as part of its $3.5-billion development pipeline in August.
The new precinct, currently in the design competition phase, would add 125,000sq m of office space to Parramatta CBD and be built across two stages.
The plans also included a courtyard around the historic buildings and the city’s largest fig tree to create an entertainment quarter with food and beverage offerings.
GPT Wholesale Office Fund fund manager Martin Ritchie 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.”
GPT expects stage one of the development, with the taller tower, to be lodged and approved by the end of 2022 and construction to start in 2024.
The GPT Group has existing office assets in Parramatta, including the newly completed 32 Smith Street tower, and Eclipse Tower at 60 Station Street.
The George Street office precinct adds to GPT’s development pipeline which also consists of 51 Flinders Lane and 300 Lonsdale Street in Melbourne, Cockle Bay Park and the corner of George and Bathurst streets in Sydney as well as the Skygarden in Brisbane.
The group is seeking pre-commitments for its 300 Lonsdale and Cockle Bay Park projects to progress them to the next stages.
