$100 million price tag for premium Parramatta precinct

Westfield parramatta

Private strata owners have listed an older-style 62-lot commercial building adjoining Westfield Parramatta in Sydney's west for sale for more than $100 million.

The 3283sq m property, known as the Parramatta Business Centre at 5 Aird Street in the Parramatta CBD, will eventually make way for a mixed-use project totalling in excess of 55,000 sqm of gross floor area over two towers. They will sit above a commercial-retail podium.

The owners already have a planning proposal approved through the new Independent Hearing and Assessment Panel and Parramatta Council. It is currently with the NSW planning department for final approval.

It is also a short distance to the $2 billion commercial precinct, Parramatta Square.

The development follows shopping centre giant Scentre's plans to build a landmark office tower above its centre, Westfield Parramatta, next door.

Scentre is getting advice on the proposed Argyle Tower, which will provide about 100,000 sqm of office space across approximately 40 floors.

Investors banking on revitalised Centre Road

The landmark ANZ Bank and Bentleigh Fresh Fruit Centre site in the heart of Centre Road has sold for $8.005 million at auction, as investors and businesses demonstrate a growing faith in the popular retail strip.

David Bourke, Mark Talbot and Ervin Niyaz of Fitzroys sold the 413-417 Centre Road, Bentleigh property for more than $500,000 above reserve and what is believed to be a record sum achieved for a Centre Road retail strip offering.

The 482sqm site sold with five-year leases to both tenants, at a 5.6% yield. It has a prominent 16.5-metre frontage to the strip and backs on to the large Coles supermarket car park at the rear.

Niyaz said four bidders competed for the property, with a private investor winning out.

“The property’s strong tenancy profile and rent return, and the opportunity to acquire a prime Centre Road freehold positioned opposite the main pedestrian crossing and a number of national and local retailers attracted strong interest throughout the campaign and highly competitive bidding at auction,” he said.

Talbot said a growing confidence in Centre Road has emerged following the recent completion of the Bentleigh station level crossing removal, and introduction of surrounding medium and high-density residential developments.

“Traffic and pedestrian flows have improved as a result of the works, and investors see the project underpinning the growth of the strip in the long-term.”

“This has been complemented by the growing number of residential projects around the strip had further bolstered the immediate catchment of the strip.”

Fitzroys’ Walk the Strip report shows medium density mixed-use retail and residential developments have further accentuated the extended trading cycles of centres such as Centre Road, Bentleigh and added to their vibrancy.

Talbot has just leased a string of a prime retail spaces in the strip to tenants headed by Sussan Retail Group, which will open a Sportsgirl outlet at 440 Centre Road, as well as cult burger restaurant and food truck Mr Burger at 416 Centre Road, and at 379 Centre Road to residential real estate agency Hocking Stuart.