In an agreement marking the first of its kind, fund manager Charter Hall and Western Sydney University (WSU) are coming together to develop a $280 million mixed-use, education and commercial office project in Parramatta.
Charter Hall's $1.5 billion Direct Office Fund and WSU will each obtain equal stakes to co-develop and co-invest in the vertical campus.
The University of New South Wales (UNSW) will join WSU as tenants in the high-rise development based around an engineering innovation hub. The commercial component has a large pre-lease commitment to WSU and will accommodate an undergraduate engineering program as well as WSU's architecture and business courses.
This project will be the second time that WSU and Charter Hall have partnered on a development in Parramatta. The 26,500sqm One Parramatta Square, which is owned by two funds run by Charter Hall, is currently leased to WSU.
"Charter Hall is excited to again be partnering with WSU to deliver Parramatta's newest integrated education and commercial office development," Charter Hall managing director David Harrison said.
Charter Hall has been making some considerable movements in the western Sydney municipality, with last year seeing the joining together of their Prime Office and Direct Office Funds to purchase a Dexus development at 105 Phillip Street for $229 million.
Finishing construction this year, the site has been leased for 12 years, serving as the headquarters for the NSW government's Department of Education.
Parramatta is filling out but not filling up
The recent Charter Hall developments are joining a spate of new buildings fast entering the Parramatta skyline.
Early in 2018 Dexus was granted approval to develop a $500 million commercial tower on the corner of George and Charles streets looking over the Parramatta River.
Fund manager GPT has recently reached agreements with QBE Insurance to support their $300 million office development. GPT also recently the Eclipse tower from super fund Rest for $277.6 million.
One noteworthy project currently in construction is ‘South Quarter’, by builder and developer Dyldam. This community park development encompassing five buildings, 777 residences and a 275-room hotel.
‘Promenade’, a 500-residence mid-rise build by Starryland, and ‘West Village’, a 390-residence high-rise by EcoWorld International, are also in construction phase.
Parramatta has been identified as an integral new ‘Capital City’ in part of the Greater Sydney Commission’s plan for Sydney to become a connected metropolis of three cities.
For more information, or to find a suitable site in Parramatta, please reach out to our NSW team here.