This article is from the Australian Property Journal archive
PRIVATE investors have snapped up EG’s Mungo Scott Building in Sydney’s Flour Mill of Summer Hill precinct for $23.8 million.
The Mungo Scott Building at 18 Flour Mill Way, around 6.3km west of the Sydney CBD, spans 18 floors across 3,510sqm and boasts an occupancy rate of 85% with a WALE of 3.6-years.
Jonathan Vaughan, Antony Pirrottina, Demi Carigliano from Knight Frank, alongside Jason Wright, Chris Bailey and Liz Assadourian from GJS negotiated the on-market transaction via an expressions of interest campaign.
“Investors value high-quality commercial buildings, even outside of the Sydney CBD, and this transaction signals the appetite that continues to exist for unique heritage office space which has been successfully repositioned and attracts a diverse tenant base,” said Sean Fleming, head of capital transactions at EG Funds.
“EG’s commitment to thriving neighbourhoods and communities will continue to exist within our developments even post the sale of the apartments, with the Little BIG Foundation engaging with tenants across commercial and residential real estate to drive social connections.”
Tenants include small to medium enterprises, including COPOSIT, Jannawi and MS Australia, with a coffee roaster (Tank Stream Roasters) leasing the ground floor space with supplementary café (STCA), returning a net passing income of $1,218,675 and a potential fully leased net income of $1,608,986.
The Mungo Scott Building, is the centrepiece of the recently redeveloped The Flour Mill of Summer Hill masterplanned community.
Constructed in 1922, the site has undergone a major transformation through redevelopment and repositioning of multiple heritage buildings that was completed in 2019.
The project saw the establishment of apartments, townhouses, and retail spaces on the site.
With the historical Mungo Scott Building, a six-storey building with the original signage, undergoing a $10.5 million repositioning to office and retail space.
The site is in close proximity to transport, including Lewisham West Light Rail Station.
EG previously listed the former flour mill turned office complex back in September 2019.
