Pubs operator beats theme park giants to snap up Sydney’s Luna Park

Oscars, owned by Bill and Mario Gravanis, is one of the largest privately run hospitality groups in NSW. Its managing director, Bill Gravanis, said the company had big ambitions for Luna Park and hoped to transform it into one of the five most popular tourist attractions in the state. He said it already has strong investment fundamentals and brand recognition.

“It is an iconic waterfront landmark on the best harbour in the world that presents a great opportunity for the Oscars business,” Mr Gravanis said.

With its iconic entrance and position close to Sydney Harbour Bridge, the amusement park is well-known and loved by generations of Sydneysiders. But it has had its ups and downs, including several closures and a planning battle over a new ride in 2018.

The sale campaign drew interest from entertainment and theme park operators from the US, Europe and Asia. Local operators such as Village Roadshow – the owner of Gold Coast theme parks Warner Bros. Movie World, Sea World, Paradise Country and Wet’n’Wild – and Dreamworld owner Coast Entertainment Holdings also showed interest in the asset.

While initial sale price expectations were for around $70 million, the amusement park changed hands for a price in the mid-$50 million range, according to sources close to the deal but not permitted to speak publicly.

CBRE’s Simon Rooney, who negotiated the sale with his colleagues Paul Ryan and James Douglas on behalf of Brookfield, said Luna Park was a sought-after investment due to being a trophy asset that was rarely traded and uniquely located.

“The diverse opportunities to leverage the existing assets and customer base to drive revenue growth via additional amusement, immersive and food and beverage initiatives were key drawcards for domestic and global buyers seeking value-add investment opportunities,” Mr Rooney said.

The deal hands Oscars Group the Luna Park business, as well as the leasehold interest for the amusement park, which includes its boardwalk and carpark. The lease for the amusement park and boardwalk have an expiry date of August 2044, while the car park lease expires in August 2103.

The freehold for the venue is owned by the Luna Park Reserve Trust, an agency of the NSW government.

The sale will free up capital for Brookfield to pursue development opportunities within its core areas of focus: premium offices, warehouses, seniors living and student accommodation.

Brookfield took control of Luna Park in 2007 as part of its acquisition of builder Multiplex, which owned the amusement park at the time. It spent $40 million over the past four years to prepare the amusement park for sale with additions such as the $15 million Immersive Big Top.