REST Industry Super has paid $167.5 million for the Eclipse Tower in Parramatta.
The 19-storey A-grade development was sold Leighton Properties and Grosvenor Fund Management Australia just a month after its practical completion by builders John Holland.
Its sales reflected a 7.28% yield to the superannuation giant, which has $23 billion in funds.
REST recently repositioned its holdings with the sale of a smaller tower in Carrington Street, Sydney, for $58.5 million to Dexus.
REST chief executive Damian Hill said the fund’s property portfolio accounted for about 9% of its holdings, with both direct holdings along with units in wholesale funds.
Designed by Fitzpatrick and Partners, Eclipse Tower has a net lettable area of 25,660 square metres, anchored by QBE Insurance Group and professional services firm Deloitte, plus Landcom and Servecorp.
It was sold about 83% with an 18-month rental guarantee over vacant space.
Leighton Properties managing director Mark Gray said at over $6500 square metre, the sale cemented Parramatta as a location for institutional investment for prime grade commercial property.
Anthony Lombardo, head of office development at Grosvenor Fund Management, said the sale demonstrated the benefits of identifying and committing to potential growth areas outside of the Sydney CBD.
"Eclipse Tower has set a new rental level benchmark for Parramatta," he said.