Ex-Hughes Gallery, now BMG HQ, sold after 33 years
EXCLUSIVE
The family of late art dealer Ray Hughes has sold a c1914 warehouse turned office investment in Sydney’s Surry Hills.
The three storey brown brick building at 268-274 Devonshire Street, known as #270, is understood to be trading for just under $25 million – guide when it was listed January.
Based on the annual net rental return – $1.36m – this reflects a c5.5 per cent yield.
Mr Hughes paid $1.31m in 1992 before repurposing the space as the Hughes Gallery, which operated there until 10 years ago.
Later repurposed as swank office accommodation, with 1978 sqm, it is fully leased to, amongst others, Studio Johnston Architects, advertising agency Special Group and interior designer Arent&Pykye.
Global music giant BMG Rights Management occupies the top floor.
The suburb is about two kilometres south of Sydney’s CBD.
Next chapter for Ung Hing & Co furniture maker
On a 779 sqm island site zoned Mixed Use, IB Property marketing Shane Blackett described the property – developed for furniture maker Ung Hing & Co, as a generational asset.
“Located in arguably Australia’s most sought-after commercial precinct, which boasts one of the nation’s lowest vacancy rates, the property is well-served by excellent transport links, including the light rail connecting the eastern suburbs to the CBD and just a five-minute walk to Central Station,” he added.
The deal comes three and a half years since another warehouse converted office in the suburb, 1 Butt St, traded for $24m – a 4.23pc yield.
Formerly a print plant, that deal set a record for a Surry Hills property sold via auction.
Mr Hughes died in 2017.
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