NSW govt sells Ausgrid building

The NSW government has sold the Ausgrid building in Sydney's CBD for $152 million and plans to use the money to fund essential services and infrastructure across the state.

Finance and Services Minister Andrew Constance on Friday announced the sale of the George Street property to Far East Organisation, following strong interest in the tender from both local and international investors.

Mr Constance said the $151.8 million price "significantly exceeded" its retention value and the proceeds will be used to fund "essential services and more infrastructure across the state".

The Ausgrid building has the potential, subject to planning approval, to be converted into a hotel, retail and residential complex and support hundreds of jobs and critical investment in Sydney's CBD.

"The sale of this asset again highlights that investors have full confidence in our economy as a key destination for international investment," the minister said in a statement.

Mr Constance said the government was committed to driving efficiencies and ensuring government-owned office space was used more effectively or relinquished.

"Recycling non-core government property assets continues to deliver results," he added.