The New South Wales government pulled out of negotiations to buy Australian Unity Office Fund's 32 Phillip Street office in Parramatta, Sydney, as the new home of the Powerhouse Museum.

The talks, which started at the end of 2017, were halted after the government decided to move the museum to a new precinct that is adjacent to the fund's grade B office property. Recently, the government said the relocation of the museum to the riverside site from the Ultimo suburb is expected to cost A$645 million and the new museum will open in 2023.

The 6,759-square-meter 32 Phillip Street is fully occupied by GE in a lease deal that expires June 30, 2023.