HSBC building in Parramatta tipped to fetch $9 million under the hammer
A commercial building in Sydney’s Parramatta is expected to sell for $9 million – almost triple its value from its last sale 16 years ago.
Exclusively tenanted by HSBC, the 253-square-metre property is located in Parramatta’s CBD at 179 Church Street and comprises 400 square metres of net lettable area set across two levels.
While Knight Frank selling agents Andy Hu, Dominic Ong and Mark Litwin could not disclose a price, industry sources estimate the building could sell for about $9 million.
A couple purchased the property in 2002 for $2.29 million, Domain Group records show.
The property is leased to HSBC Bank. Photo: Supplied
It is believed that the owners have retired and wish to access some cash.
Mr Hu says the site’s floor space ratio of 3:1 means the property is underdeveloped.
“The land component totals 750 square metres (if the maximum FSR is realised), so there is an additional 350 square metres that could be utilised,” Mr Hu says.
“This adds great value to the property and we expect it to continue to grow in the future.”
While there is no development approval on the property, the site has a B4 mixed-use zoning with a building height limit of 24 metres.
The Westpac building, which is heritage-listed, sold for $14 million. Photo: Supplied
Back in March this year, the Westpac building, also on Church Street, comprising 660 square metres, sold for $14 million at a yield of 4.3 per cent.
Church Street is currently home to Parramatta’s Eat Street and is the main pedestrian thoroughfare from Westfield through to the Parramatta River bank, with the development of Parramatta Square expected to boost local area foot traffic.
“There are great commercial opportunities in Parramatta,” Mr Hu says. “This particular freehold building sits directly opposite the first phase of the Parramatta Square, due to be complete in 2019, at a cost of $2.8 billion.
“Parramatta Square will deliver approximately 245,000 square metres of office space, giving further opportunities for companies to establish their presence here.”
Mr Litwin said this “will further cement western Sydney’s position as one of Australia’s largest economic engines”.
HSBC currently has approximately two and a half years left on their lease at 179 Church Street, with a five-year option for renewal.
The property will be sold via auction, which will be held on July 5.
