QBE signs major lease for new Parramatta tower

The proposed office tower in Parramatta, in Sydney’s west.

GPT has locked in insurance group QBE as anchor tenant at its $300 million office development in Parramatta.

The insurer will shift out of the Eclipse Tower into the 32 Smith St project in 2020.

QBE will occupy 51% of the 26,400sqm prime grade office building, initially for 10 years.

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QBE is separately moving to consolidate its Australian and international headquarters in IAG House in Sydney’s CBD once an overhaul of the tower is completed by developer Brookfield and co-owner Oxford Properties.

The play marks GPT’s first move in the burgeoning Parramatta office market and came after the group’s purchase this year of the insurer’s existing building, the Eclipse Tower at 60 Station St.

This move is a significant one for QBE, bringing together our existing Parramatta-based teams with those currently located at Sydney Olympic Park into one a purpose-built, modern and flexible workspace

GPT head of office and logistics Matthew Faddy says the insurer would have con­temp­orary, state-of-the art premises in western Sydney.

GPT’s development will add to the surge of activity in the Parramatta office market with projects by tycoon Lang Walker, Dexus, Charter Hall and private players under way.

“We continue to see growth in commercial activity and significant infrastructure investment in the area, and we expect demand for office space will continue to grow,” Faddy says.

QBE Australia and New Zealand chief operating officer Renee Roberts says the move will create a new western Sydney hub for the insurer.

“This move is a significant one for QBE, bringing together our existing Parramatta-based teams with those currently located at Sydney Olympic Park into one a purpose-built, modern and flexible workspace,” Roberts says.

GPT has appointed Richard Crookes Constructions as builder of the Fender Katsalidis tower.

This article originally appeared on www.theaustralian.com.au/property.