Bill and Mario Gravanis’ Oscars Group has acquired Sydney’s famous Luna Park, with plans to further increase its hospitality appeal.
Enjoying a picturesque and totally unique location on the shores of Sydney Harbour, the historic Luna Park Sydney is a sprawling operation with many facets. It features 17 amusement rides, the heritage-listed Coney Island, the 1935-built Crystal Palace, and the heritage-listed wild mouse roller coaster, slated to soon reopen after an extensive restoration.
The business also incorporates 7,000sqm of building floorspace and a 389-space car park.
Oscars MD Bill Gravanis says it offered their group a strong brand, and outstanding investment fundamentals.
“It is an iconic waterfront landmark on the best harbour in the world that presents a great opportunity for the Oscars business.
“Our goal is to further establish Luna Park as a Top 5 tourist destination for visitors, whilst also promoting it as an entertainment precinct for Sydneysiders.”
Oscars is one of the country’s largest privately-owned hospitality groups, holding commercial properties across the east coast, counting nearly two-dozen pubs, accommodation hotels and resorts and events centres.
The protracted sale campaign was looking for a price of circa $70 million, but sources “close to the deal” report the pub group settled on an amount in the mid-$50 millions.
It has secured Oscars the Luna Park business, and long leases on the leasehold of the amusement park and boardwalk, and the car park, which run until 2044 and 2103 (respectively). The NSW government’s Luna Park Reserve Trust owns the freehold.
A sale of the landmark was subject to consent by the Trust, which wants to ensure Luna Park remains a successful amusement park, for the enjoyment of the people of Sydney and NSW.
This intent played out in a recent $15 million redevelopment of the 3,000sqm Big Top, to further its position as a multi-purpose venue, and collaborations with major city celebrations, such as Sydney Festival, Vivid and Lunar New Year.
Entering its 90th year, Luna Park CEO John Hughes says they have “exceptional momentum” in the business, seeing record ticket sales and visitation.
“We’re excited about this next chapter, and the opportunities that Oscars Group ownership will bring to the park.
“Our upcoming summer will be the biggest on record with the launch of our Netflix partnership, the world-premiere of the Vegesaurs experience, our famous NYE festival and the launch of the heritage-listed Wild Mouse roller coaster following its two-year restoration.”
Such trophy assets are tightly held and rarely traded, prompting strong local and offshore interest from the US, Europe and Asia, and other operators of theme parks, such as Warner Bros. Movie World and Dreamworld.
The site was acquired in 2007 by Canadian management giant Brookfield, as an asset of Multiplex, which it took over. Over the past four years the company has reportedly spent $40 million preparing Luna Park for sale.
A divestment campaign began earlier this year through CBRE’s Simon Rooney, Paul Ryan and James Douglas, who note Oscars’ suitability to the job.
“The diverse opportunities to leverage the existing assets and customer base to drive revenue growth via additional amusement, immersive and F&B initiatives were key drawcards for domestic and global buyers seeking value-add investment opportunities,” said Rooney.
