Strong Sale for Eclipse Tower
Leighton Properties 29 Nov 2012
Joint venture partners Leighton Properties and Grosvenor have sold Eclipse Tower to Retail Employees Superannuation Trust (REST) for $167.5million, a strong price for the Parramatta CBD.
Mark Gray, Managing Director Leighton Properties, said at over $6,500 per square metre, the strong sale cements Parramatta as a location suitable for institutional investment for prime grade commercial property with investors willing to pay for quality office space.
"We have always had a strong belief in the evolution of the Parramatta CBD as both a desirable and growing commercial location. Eclipse Tower has been our third commercial development in the area, and second joint venture with Grosvenor," said Mr Gray.
He said tenant demand for Eclipse Tower demonstrated an ongoing need for quality, sustainable, A-grade office space in the suburban office markets and highlighted that companies are strategically choosing to base their operations in both the Sydney and Parramatta CBD.
"We have raised the bar with this project. Our intention was always to sell at completion and we are very pleased an investment fund of the calibre of REST has moved decisively to secure the asset.
"The sale is very much in line with our business strategy; to develop high quality, prime grade office assets for long term investors. We aim to reinvest our capital back into the business and move forward with our vision to undertake commercial developments in strong investment grade markets," said Mr Gray.
Anthony Lombardo, Head of Office Development at Grosvenor Fund Management, said the sale was an excellent result for Grosvenor and demonstrated the benefits of identifying and committing to potential growth areas outside of the Sydney CBD.
"Eclipse Tower has set a new rental level benchmark for Parramatta. Blue chip tenants are attracted to the location, sustainability features, architectural design and the strong delivery capabilities of the joint venture partners.
"The tenants - Deloitte, QBE, Landcom and Servcorp - have all increased their footprint in the Parramatta market, in some instances doubling or even quadrupling their space requirements. This is a growth trend we expect to see continue, as the pace of change within the city continues to gather momentum," said Mr Lombardo.
Mr Lombardo said the project was the first ever design competition run by Parramatta Council under the new city centre plan, with the Fitzpatrick and Partners' architectural vision delivering a standout result.
Built by John Holland, construction was finished in August 2012. At over 80 per cent leased, the final three vacant floors in the building are currently under offer.
Eclipse Tower is also registered for a Green Star Office Design v2 rating and has achieved a 5 Star Green Star rating (Design) and will be pursuing a 5 star Green Star rating (as built) and a 5 star NABERS energy rating.
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