EG’s Mungo Scott Building, situated within the award-winning Flour Mill of Summer Hill precinct, has been acquired for $23.8 million.

EG’s recent transaction of the iconic Mungo Scott Building totals 3,510 square metres and has an occupancy rate of 85 per cent. The multi-tenanted building had a weighted average lease expiry of 3.6 years.

Sean Fleming, Head of Capital Transactions at EG Funds, said, “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”.

“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.”

Originally constructed in 1922, the site underwent a major transformation through the site redevelopment and a repositioning of multiple heritage buildings and was completed in 2019. The urban project introduced apartments, townhouses, and retail spaces. The historical Mungo Scott Building, a six-storey building with the original signage, underwent a $10.5 million repositioning to office and retail space.

Jonathan Vaughan, Anthony Pirrottina, Demi Carigliano from Knight Frank, and Jason Wright, Chris Bailey and Liz Assadourian from GJS brokered the on-market transaction. The property was purchased by a Sydney-based private investor.

The historical site won the NSW AILA Architecture Awards for Urban Design and was a finalist in the UDIA Excellence in Urban Renewal/Adaptive Reuse category. It is positioned 6.3 kilometres from the Sydney CBD and in close proximity to transport, including Lewisham West Light Rail Station.

Founded in 2000, EG manages $5.1 billion in real estate on behalf of institutional investors and wholesale clients to generate outstanding returns with lasting social impact. With $3.9 billion in its development pipeline, EG is committed to finding a better path to better returns.

EG utilises its proprietary risk management software, PRISMS®, to identify the opportunities, consider the risk and match the deal to the investor profile. EG’s disciplined, data-driven approach to risk management enables safeguarding investor funds whilst maximising returns.

Knight Frank’s Anthony Pirrottina said the Mungo Scott building was a timeless investment proposition with immediate and long-term upside.

“The property generated strong interest from a range of local private investors and syndicators during the sale campaign,” he said.

“The Mungo Scott Building provides the incoming purchaser with an opportunity to leverage the growth of Sydney’s inner west and the creative office market going forward, all the while benefitting from a bankable WALE of 3.66 years, a diversified tenant base and defensive income with significant rental reversion and value-add opportunities in the near and long-term future.

“The sale demonstrates that demand for well-located and quality office buildings remains strong throughout Metropolitan Sydney.

“This is a landmark transaction, being one of the largest commercial office assets to transact within Sydney’s Inner West for many years.”

Related Reading:

Dexus partners with TWP majority owned by CapitaLand to grow premium flexible space offering | Commo.

Gold Coast purpose-built day surgery for sale - Knight Frank  | Commo.

Knight Frank Australia becomes the Property Council of Australia NSW Diversity, Equity, and Inclusion Partner for 2024 and 2025 | Commo.