Singapore-based real estate fund manager SC Capital Partners has reached an agreement to acquire Two Wentworth Street, an office tower in Parramatta’s central business district, for A$105.3 million (nearly $72 million).
It has acquired the office tower through its SCORE+ fund, which invests in core and core-plus direct property assets in the gateway cities of Asia Pacific.
Two Wentworth comprises a Grade A office tower with a net leasable area of over 10,000 square metres, which is fully leased, predominantly to government tenants. It is located close to Parramatta Square, Parramatta Transport Interchange and Westfield Parramatta shopping centre.
The office tower is located within Sydney’s second-largest employment destination with strong occupier demand, SC Capital Partners said in a statement.
The purchase is consistent with SCORE+ Fund’s strategy of “acquiring well-located and stable, income-generating assets,” said Suchad Chiaranussati, chairman and founder of SC Capital Partners.
The fund manager said it expects market fundamentals to remain strong as the local government plans to establish Parramatta as a ‘priority growth area’ and has earmarked over A$10 billion for public and private investments. The Greater Parramatta area is hoped to house more than 50 per cent of Sydney’s population within the next 20 years.
The transaction follows a spate of investments in the Australia market by the firm, including a recent A$174.5 million acquisition of three retail assets in central Sydney, and the A$62 million acquisition of Finlay Crisp in Canberra. It is also developing an A$750-million hotel in Sydney, which is slated for completion by 2022.
SC Capital Partners manages $7.6 billion of assets across five discretionary, closed-end opportunistic funds, the SCORE+ Fund, and two listed REITs. The firm has invested more than $2.3 billion in equity and over $4.4 billion in total capital across 84 transactions since its inception in 2004.