Brookfield have sold out of the Jessie Street Parramatta Centre in a deal with Charter Hall and GIC worth $420m.
The complex includes a four-level office podium with an expansive atrium and 15 upper levels of office space totaling 53,901sqm. The building sits on a 13,530sqm site that holds longer-term redevelopment potential.
Brookfield completed extensively refurbishments on the building from 2007 to 2009 worth $64m bring the building up to a 5.5 star NABERS rating. The tower is 99.9% occupied by government and legal tenants with a weighted average yield of 4.5% and generates $26.5m pa in net rent. Brookfield attempted to sell the asset in 2016, appointing JLL to sell the building with ambitions of achieving over $360m.
The transaction will show a yield of approximately 6%.
Charter Hall and GIC are yet to announce their respective interests in the asset, though it is believed GIC will take a majority stake.
GIC have increased their exposure to the Sydney office market in the last few months having invested approx $1.0bn in acquiring a 25% interest in Barangaroo Towers 2 and 3 off Lend Lease.
The Jessie Street Centre deal was negotiated by Cushman & Wakefield and Knight Frank.