Charter Hall snares Parramatta Square tower and uni
The $2 billion Parramatta Square urban regeneration project in western Sydney has entered a new phase of consolidation, with Charter Hall securing full control of a major tower and university campus at the site from Leighton Properties.
Charter Hall has secured development right for the $220.5 million 1PSQ tower, which is slated to become a new, highrise campus and administration building for Western Sydney University at the heart of the project underpinning Parramatta’s ascent as Sydney’s second CBD.
Parramatta Square is a sixstage masterplan by Parramatta Council which will transform more than 3ha of Parramatta’s CBD into a sprawling public plaza and commercial, residential and civic hub.
The WUS tower will cater to more than 10,000 students.
Charter Hall and Leighton Properties, which is now controlled by CIMIC, are understood to have brokered the deal for 1PSQ in late December, after working jointly for more than 12 months as owners and developers of the building, which will be one of the first to open in the square.
Today’s announcement will ensure that we are in the best position to deliver a world class facility for WSU and its students as well as our investors
Charter Hall’s Core Plus Office Fund and Direct Office Fund paid $16.25 million in December 2014 for the site at 169 Maquarie St, with Leighton Properties standing in place as development partner on the 14storey tower, which is 100% leased to WSU for 15years.
The move signifies a new phase of consolidation at the high profile project, which has been in planning and talks for more than two years, and appointed a final developer — Walker Corporation — for its largest components in late 2015.
“Today’s announcement will ensure that we are in the best position to deliver a world class facility for WSU and its students as well as our investors,” Charter Hall’s office development head Andrew Borger says.
“The depth of our internal development capabilities means that we are able to partner with our clients to deliver high performance workspaces as well as create investment grade properties, adding significant value and enhanced income yield and total returns for our managed funds.”
Parramatta represents the second major urban renewal project Leighton Properties has bowed out of in six months, following its decision to relinquish its stake in Perth’s City Link redevelopment to joint venture partner Mirvac.
Leighton Properties did not return calls for comment.
This article originally appeared on www.theaustralian.com.au/property