GPT Group [ASX:GPT] have seen nothing but share decline over the last year, as their shares have recently fallen by 1.18%.
They are now trading at $4.62 a share, which is a drastic drop from last November’s $5.41.
GPT is a large scale Australian property group who own a huge portfolio of properties across the country. They have a market cap worth $8.361 billion
New ventures and property acquirements
Earlier this month, GPT’s $230 million commercial tower was approved by the city of Parramatta.
GPT have the intention to develop 32 Smith Street, while delivering a huge amount of commercial space as a form of infrastructure investment.
The site was originally owned the by Salvation Army. GPT Group managed to acquire the property for $31.2 million.
The Urban Developer Reports that GPT’s Head of Office and Logistics Matthew Faddy stated:
‘All of these factors will reinforce the Parramatta CBD as the geographic heart of commercial activity in Sydney and make it an even more compelling location for major corporate tenants.’
The buildings overall design will be done by architectural firm Fender Katsalidis, after winning a competition for the contract in 2017.
Demand of office space
Strong population growth and infrastructure investment has prompted a significant amount of demand for office space in the Parramatta area.
An office market report conducted by The Property Council of Australia showed Parramatta was still one of the best performing offices in the marketspace in the country.
The Property Council report displayed the overall vacancy space of Parramatta had fallen from 4.3% to 3% from six months leading up to January 2018.
The construction of 32 Smith Street will begin later this year, with a complete date in the middle of 2020.
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