28 June 2024
By Hannah Wilcox
One of Sydney’s most iconic harbourside spots has been put up for sale for the first time in almost 20 years.
Owners Brookfield wants to sell the much-loved Luna Park as it looks to pursue development opportunities in a portfolio that mostly holds premium office space, warehouses, seniors’ living and student accommodation.
The global investment firm took control of Luna Park during its acquisition of then-owner Multiplex in 2007.
Featuring 17 amusement rides, an immersive ‘big top’ and the heritage-listed Coney Island across 3.1 hectares of land, the art deco amusement park has been given a $70 million price tag.
“We have been proud owners of Luna Park Sydney for the last 20 years and have invested $40 million since 2019 to enhance its operations,” Brookfield head of real estate investments Ruban Kaneshamoorthy said.
“As we focus our Australian portfolio on core assets, it’s time for Luna Park to transition to new custodians, who can steer the business through to its next phase of growth and ensure it remains an icon of the Harbour City.”
The land, owned by state government entity the Luna Park Reserve Trust, must remain an entertainment venue even after the sale – leaving residential developers unable to snap up a deal.
“Since opening in 1935, Luna Park has played an important role in Sydney’s social and cultural fabric,” Luna Park CEO John Hughes said in a statement on Wednesday.
“The business has undergone a strategic transformation, with a $40m upgrade during the last four years adding new rides and immersive experiences, both of which are driving record visitation.”
Luna Park records more than 1.1 million visitors a year and celebrated its 20 millionth visitor last year since reopening in 2004.
Hughes added: “Our outstanding management team is pursuing a strong pipeline of new opportunities that will further add value to the business.”
Commercial real estate agency CBRE will be handling the sale.
“Luna Park is more than just an amusement park”, Head of Retail Capital Markets Simon Rooney said.
“It is the beating heart of Sydney. The sale presents a unique opportunity to secure the Luna Park business in a globally recognised Sydney landmark underpinned by outstanding investment fundamentals and a strong brand.”
He continued: “Trophy assets such as Luna Park are tightly held and rarely traded, with the campaign providing an opportunity to secure a world-class entertainment, event and experience destination with further upside.”
There is a high likelihood the new owner will look to redevelop the three hectare site into a strip of hospitality venues, similar to that of Barangaroo.
The park’s latest accounts show that it generated a net loss after tax of $579,820 in 2023, which accounted for financing costs and payments to lender Metrics Credit Partners, the Australian reported.
It did, however, bring in a gross profit of about $8.36 million on revenue of about $56.85 million the same year.
Buyers will most likely look to refresh the site, with possible new additions capitalising on the stunning harbour views and public transport accessibility to increase profits.
Opening the gates during the Great Depression, Luna Park first came to local shores following the success of its New York namesake in 1935.
It made headlines worldwide in 1979, when a fire ripped through the Ghost Train ride claiming the lives of six boys and a father.
Expressions of interest are due by late August.