A LOCALLY-BASED Asian investor has purchased a commercial office building off-market for circa $40,000,000 at 16-18 Wentworth Street in the thriving city of Parramatta.
The 100 per cent freehold property was built in 1991 and offered a 6,408sqm* NLA and 1,333sqm* site area.
The asset was sold by Ray White Commercial Western Sydney Senior Sales Executive Jai Sethi and Associate Director Victor Sheu, on behalf of Chandru Enterprises.
“This deal is testament that there are still significant funds looking to be placed into the right investment vehicle, despite COVID-19 and the complexity that it has generated across different markets and industries,” Mr Sethi said.
“16-18 Wentworth Street is over 50 per cent vacant, but buyers saw potential to add value, despite the COVID-19 overall blanket effect covering the market. The right property will still receive significant attention.
“Despite negative speculation of COVID-19 slowing down the market and the lending market being risk-averse and tight, we have historically low interest rates and quality assets with potential upside either in immediate uplift or future redevelopment, are extremely attractive.
“The Asian capital that’s locally-based is still looking for an opportunity and office assets seem to be a secure stand-out for these buyers right now, it’s a good balance of controlled risk, as well future opportunity to capitalise underlying value.”
“Parramatta is absolutely thriving, with Parramatta Square coming on really well, and the recent announcement of Parramatta Metro as well as the Light Rail on its way, there are always keen investors looking at getting into this market,” Mr Sheu said.
“Parramatta provides businesses and investors a strong alternate option to the traditional CBD, as well as North Sydney’s high prices.
“This has led to higher demand for commercial space in Parramatta particularly of good location, other majors such as Walker and GPT are both building their commercial towers now, with Scentre Group’s tower well-progressed in the planning process.
“This asset is a stone’s throw away from both Parramatta Station and Westfield. The amenity, as well as efficient floor plates will attract an array of tenants, particularly professional services and education due to its proximity to both public car parking and amenities.”
Chandru Tolani and Sanjay Kumar of Chandru Enterprises said they originally acquired the building in 2012 for $18,000,000.
“Chandru Enterprises is a diversified company which owns a multitude of assets including hotels, golf course, childcare centres, commercial buildings, and is also engaged in land development and apartment building,” the vendors said.