Leasehold of historic Science House in The Rocks being offered for the first time

The state heritage-listed property has 2075 square metres of office space over seven storeys, on a 556-square-metre corner site.

It is 95 per cent leased to a mix of tenants including New York University, which occupies a majority of the building’s floor space for its only Australian campus, as well as other commercial tenants.

The asset generates about $840,000 in rental income a year, but this could increase to an estimated $911,789 a year if fully leased.

With an average gross passing rent at $624 a square metre a year, the building “provides strong reversion prospects” for investors, according to the sales brochure.

A Department of Planning, Industry and Environment spokesperson confirmed the listing.

“Science House is surplus to the government’s service delivery requirements and has been approved for divestment by way of a long-term lease that ensures the government retains a custodial role in respect to the property,” she said.

“The government is constantly looking at opportunities to ensure its property assets are owned and managed in a way that delivers the best value for money to the state’s taxpayers and supports service delivery for the people of NSW.”

The property will be divested with heritage protections in place, including conservation management plans endorsed by the Heritage Council of NSW to guide potential buyers’ plans for the building.

The spokesperson said proceeds from the sale would be used to “fund frontline services and infrastructure across the state”.

But she refused to disclose how much the state government hoped to get from the sale, saying that “the market will dictate the value of the property”.

CBRE selling agents Kenny Duncanson and Harry George declined to comment.

Nearby, the long-term leasehold of Accountants House at 117 Harrington Street changed hands for $21 million to Hong Kong-based funds manager Terraform Capital in late June.

That property is also held on a 99-year lease but has 86 years remaining until it expires.

Opened in 1931, Science House was built and first occupied “as a centre of learning and inquiry” by three of the major scientific organisations in NSW: Linnean Society, the Royal Society of NSW and the Institute of Engineers Australia, according to the building’s heritage record.

Planning for the building was delayed until the 1920s because of World War One and a lack of funds.

It is a rare example of an Interwar commercial palazzo building in NSW, reflected in features including the sandstone ashlar coursed base, cornices and an ornamented frieze on the top level.

Science House received the first Sulman Medal of the Royal Australian Institute of Architects’ NSW Chapter the year after.