Mungo Scott Building: Summer Hill’s old flour mill and silo up for sale

The Mungo Scott Building in Summer Hill, once an old flour mill and silo, is up for sale

The iconic old flour mill in Sydney’s inner west is for sale.

Named the Mungo Scott Building, the six storey building at 18 Flour Mill Way in Summer Hill is described as “some of the most creative office space in Sydney’s inner west”.

Originally constructed in 1922, the building operated as a flour mill and silo and has since undergone a complete restoration into commercial office space with retail on the ground floor.

The heritage building underwent a $10.5 million base building refurbishment in 2018 including new airconditioning, mechanical services, toilets, modern stairs and a lift, while another $2.3m has also been spent on speculative fit-outs.

Aerial view of the heritage building in Summer Hill.

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The award-winning property has been listed via an expressions of interest campaign through Knight Frank’s Jonathan Vaughan, Anthony Pirrottina and Demi Carigliano and GJS Property’s Jason Wright, Chris Bailey and Liz Assadourian.

The building is over 84 per cent occupied by 15 tenants including COPOSIT, Jannawi and MS Australia, with coffee roaster Tank Stream Roasters leasing the ground floor space with supplementary cafe (subject to council approval).

The agents say the building has a net passing income over $1.2m and potential fully leased net income over $1.6m.

The building has been transformed into creative office spaces.

Knight Frank’s Anthony Pirrottina said the Mungo Scott Building was a suburban unicorn, offering buyers the opportunity to acquire one of the few true creative office buildings in the inner west.

“The asset is a timeless investment proposition with immediate and long term upside,” he said.

“It will provide an incoming purchaser with the perfect opportunity to leverage the growth of Sydney’s inner west and the creative office market going forward, all the while benefiting 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 Mungo Scott Building has been described as a “suburban unicorn”.

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“A large outdoor forecourt forms part of the title and presents opportunities for future value add at the property, including an additional boutique commercial building, subject to approval.”

GJS Property’s Jason Wright said the building presented as a brand new asset following refurbishments.

“When compared to other neighbouring suburban markets, Mungo Scott presents a superior office product at a substantially lower rental rate, which has been a key driver in its success in securing tenants,” he said.

“Rental take-up over the past 12 months has been amongst the best in Sydney, with 65 per cent of the building leased since speculative fit-outs were commenced in July 2022.

“Not only is this cool office space sought after, but the location in the fast-gentrifying Summer Hill is appealing, with plenty of amenity and connectivity.”

The expressions of interest campaign for the property will close at 4pm on November 2.