EG sells historic office on second attempt

The Mungo Scott building (left) sold on a 6.7 per cent yield.

EG Funds has sold a flour mill converted office in Sydney’s inner west on its second attempt.

The Summer Hill property could be subdivided and sold down.

The six storey Mungo Scott building at Summer Hill fetched $23.8 million – a 6.7 per cent yield – from a private investor.

Five years ago, the fund manager and developer was chasing just over $30m.

It appointed different conjunctional agencies to market it this time: Knight Frank and GJS.

The expressions of interest campaign closed on November 2.

Strata sell-down an option

EG with Daiwa House repurposed the Mungo Scott building eight years ago; with 3511 square metres, it is permitted for a strata titled subdivision, allowing a sell-down (story continues below).

Developed in 1922, it forms part of a milling factory, controlled since the 1950s by Allied Mills, now a mixed-use village with over 400 apartments.

The weighted average lease expiry is 3.6 years.

It also includes 50 car parks.

At 18 Flour Mill Way, the property is walking distance to the Lewisham West light rail too.

Summer Hill is seven kilometres from Sydney’s CBD.

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Marc Pallisco

A former property analyst and print journalist, Marc is the publisher of