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News release

Sydney

An office development site has sold for $32m in the biggest Macquarie Park commercial development site sale in a year

Just under four hectares of site area at 66-82 Talavera Road has sold in a structured deal equivalent to $32m


​SYDNEY, 22 April, 2014 – A large office development site in Macquarie Park has sold to private developer Holdmark in a structured deal equivalent to $32 million. The deal is the largest commercial development site sale in the area in approximately 12 months. The biggest deal prior was the sale of the former Peter Board High school site, which was sold by DEXUS Property Group to Masters Retail (part of the Woolworths retail group) for bulky goods use in March 2013 at $27.8 million.

The property, located at 66-82 Talavera Road, comprises just under four hectares of site area with three existing freestanding buildings – one of which will be leased back by pharmaceuticals company AstraZeneca under a 12-month lease-back plus options. 

In addition to the sale, AstraZeneca has negotiated a pre-lease deal for 3,000 sqm in a new bespoke office building negotiated to be purpose-built on the site.

JLL’s Director in Charge, Parramatta John Macree and Director in Charge, North Sydney Denys Bizinger managed the sale and lease back. JLL’s Regional Director – Corporate Solutions Guy Glenny, and National Head of Corporate Account Management Rajiv Nagrath, negotiated and advised on the pre-lease commitment for AstraZeneca’s new bespoke office, set to be completed by 2016.

Mr Macree said there was a high level of interest from non-institutional boutique developers with private equity. “A site of this size and scale is rare to the market, without aggregating multiple sites. There are few opportunities for this type of site left in Macquarie Park.”

According to JLL Research, Macquarie Park is the fastest-growing office precinct in Australia, with Net Lettable Area (NLA) increasing by 117% in the last decade. With almost 574,000 sqm of A-Grade office space, Macquarie Park has the largest prime office footprint in the Sydney metropolitan area outside of the CBD. 

“The Macquarie Park office precinct benefits from the synergy of close proximity to Macquarie University, and has developed into the leading Australian high-tech office market – home to many multi-national IT&T, medical research and pharmaceutical companies,” said Mr Macree.

According to Mr Glenny, along with the sale of 66-82 Talavera Road there was a concurrent process to find new head office premises for AstraZeneca. “After deciding on the lease back, AstraZeneca decided the best solution for them was to have a new building onsite developed directly opposite their existing manufacturing facility.

“The site provides a brand new bespoke office, custom designed for AstraZeneca’s specific needs. It is the most innovative and appropriate solution for the company, and allows them to incorporate their Global iWork Workplace Standards within the new fit out – providing a better space for their employees,” said Mr Glenny. 

AstraZeneca’s CFO Thomaz Bonato said they are excited to be upgrading their facilities to a more modern work place. “The bespoke building development will allow the incorporation of new technology, and is an outstanding outcome for us as not only are we enabled to become increasingly efficient in our operations, but we’ve also managed to secure our future accommodation directly across from our manufacturing premises.” 

The property at 66-82 Talavera Road is prominently positioned on the north-east corner of the junction of Alma and Talavera Road, directly across from AMP’s Macquarie Shopping Centre and within easy walking distance of Macquarie University and Macquarie Park Railway Stations.

Kevin Nassif, Director of Development at Holdmark said he is very pleased with the acquisition. “We have identified Macquarie Park as a key growth area that is central and well positioned to attract corporations and people. Our site itself benefits from brand new major transport infrastructure, as well as from its locality to education facilities, hospitals and a shopping centre.”