Former Ray Hughes Gallery Listed for Sale in Surry Hills

A well-known warehouse in Surry Hills, once home to the Ray Hughes Gallery, is now on the market for the first time in over 30 years.

The property, located at 268-274 Devonshire Street, has a price guide of $25 million in an expressions of interest campaign. The three-storey structure, which has housed creative enterprises in recent years, carries a long history tied to Sydney’s art and business communities.

The building was originally constructed in 1914 for furniture manufacturers Ung Hing & Co. It later became the premises of Edward Hill and Co Furniture before being purchased in 1991 by Ray Hughes, a respected figure in Australia’s art scene.

Mr Hughes bought the property for $1.31 million and transformed it into the Ray Hughes Gallery, which later became known simply as the Hughes Gallery. The gallery operated for decades, exhibiting works from notable artists before closing in 2015. Mr Hughes passed away in 2017, and the building was subsequently repurposed into office space for creative businesses.

A Hub for Sydney’s Creative Industry

Today, the warehouse accommodates some of Australia’s leading creative companies, with a mix of tenants spanning music production, architecture, advertising, and design. Among them is BMG Rights Management, a globally recognised music production company that occupies the top floor. Other tenants include Studio Johnston Architects, Special Group advertising agency, Arent and Pyke Interior Designers, and Alfred design agency.

The building is now owned by Hughes’ son, Evan Hughes, who previously ran as the Labor candidate for Wentworth in the 2016 federal election. The sale is being handled by Shane Blackett of I.B Property, who noted that commercial properties of this nature are rarely made available in the tightly held city fringe market.

Devonshire St Surry Hills — *Photo Credit: Google Maps*

Investment Potential and Market Interest

The 778.6-square-metre property is a fully leased commercial freehold asset, generating approximately $1.55 million in annual gross income. It offers 2,081 square metres of total building space, making it a significant investment opportunity.

Given its location next to the light rail and close to Central Station, the property is expected to attract strong interest from buyers.

Although the building has been carefully maintained over the years, Blackett highlighted that there is room for further refurbishment and potential for increased rental returns. The property’s historical significance, combined with its proven track record of housing successful businesses, makes it a highly desirable asset for investors looking to secure a prime piece of Sydney real estate.

Interestingly, one of the building’s first commercial tenants after its transformation was Canva, which occupied 158 square metres during its early startup phase before growing into a global tech success story.

The expressions of interest campaign will remain open until Thursday, March 2, at 4:00 p.m.

Published 31-January-2025