Scentre set to develop $492 million skyscraper above Westfield Parramatta

The groups now want to bring the tower up to 42 levels with larger floor plates of 3025 square metres, yielding a total of 112,000 square metres of office space and scheduled to cost $492 million.

Another Parramatta office project, Parramatta Square, bills itself as Australia’s biggest office tower at 120,000 square metres when it is completed.

The skyscraper will attract national and international corporations to Parramatta. Image: Woods Bagot

Tenants looking in the Parramatta market have generally indicated a demand for bigger floor plates and total floor space requirements of at least 35,000 square metres, as it provides more room for open spaces and flexibility when dealing with changing space requirements.

It is understood that Scentre has had initial discussions with prospective tenants.

“It has not been possible to elicit any major tenant interest in the market place for occupying an office tower of the scale and limited floor plate size that has been approved in the concept plan,” according to the planning documents.

“Provision of large floor-plate sizes in the Parramatta office market enables prospective tenants, who would otherwise be confined to business-park locations, to locate within the Parramatta CBD.”

The new tower will activate the underutilised Argyle Street. Image: Woods Bagot

The skyscraper will join a raft of new office projects in Parramatta, including GPT Group’s 32 Smith Street, the Dexus building at 140 George Street and Walker Corporation’s 8 Parramatta Square.

At 55 storeys, 8 Parramatta Square would be the suburb’s tallest office tower when completed. It would be followed by Scentre’s development above Westfield, if approved.

Parramatta has a vacancy rate of 3.2 per cent, making it the second-tightest market in Australia, Property Council of Australia data shows.

A spokesperson from Scentre Group told Commercial Real Estate that Westfield Parramatta is one of their strongest performing centres.

“We are looking forward to its continued growth given its position in Sydney’s second CBD and plans for further investment in infrastructure and education,” she said.

“We are always looking at how we can enhance our offering to meet the changing needs of the community, across retail and beyond.

“We are working with the authorities seeking approval of our concept plans for commercial offices in Parramatta. We have no further updates to provide at this stage.”

Designed by Woods Bagot, the future tower will be an A-grade building with a five-star Green Star rating, and is expected to be “capable of attracting major private and government tenants to Parramatta”.

The proposed building will also be moved further to the west – about midway between Church and Marsden streets – above Myer, to avoid demolition of the existing five-storey retail podium at the corner block, where the original plans were approved for. The space occupied by Myer could be reconfigured to accommodate the tower.

The main office lobby and entrance will be relocated from Church Street to Argyle Street.

An open-air terrace two storeys high has been proposed on the roof of the podium and would be integrated with the approved additional retail level. Cafés and retail outlets have been suggested for the rooftop area.

Scentre, Australia’s biggest shopping centre owner, acquired a 50 per cent stake in Westfield Eastgardens in Sydney’s south-east for $720 million in July 2018, underscoring its confidence in the retail market.

The group recorded a net profit of $1.46 billion in the first six months of 2018.