After decades of failed development proposals and regulatory battles, Sydney’s Luna Park has a new owner.
Hospitality operator Oscars Group has acquired the landmark site in one of the Harbour City’s most closely watched property deals of 2024.
While the final price for the amusement park is undisclosed, it was listed in June for about $70 million, and included the business operations, buildings and long-term lease arrangements.
The deal marks the end of Brookfield’s ownership, which began when the Canadian investment firm acquired Multiplex in 2007.
Oscars Group, which manages 43 properties including resorts, hotels and pubs across Australia’s eastern seaboard, secured the property against what Oscars Group managing director Bill Gravanis said was significant domestic and international competition.
“It is an iconic waterfront landmark on the best harbour in the world that presents a great opportunity for the Oscars business,” Gravanis said. “Our goal is to further establish Luna Park as a top-five tourist destination for visitors, while also promoting it as an entertainment precinct for Sydneysiders.”
The site’s history has been chequered with many development and transformation attempts.
In 1969, then-leaseholder World Trade Centre Pty Ltd proposed a multimillion-dollar redevelopment as a highrise “international trade city”, which failed to secure planning approval.
By 1989, leaked plans showed proposals for a highrise hotel and office tower, though these were later abandoned.
In the 1990s, the government assumed control through The Luna Park Reserve Trust after the then-leaseholder failed to meet reopening deadlines.
Financial difficulties forced closure in 1996, but by 1999 the NSW government awarded Metro Edgley Group the contract to redevelop the park. Temporary closures also occurred after the 1979 ghost train tragedy, and for renovations in 1988.
In 2007, Multiplex sold its lease to an undeveloped section for about $7 million, with profits earmarked for reinvestment in the amusement park.
That same year, Brookfield acquired the site through its purchase of Multiplex.
The park’s history is also marked by regulatory challenges and resident opposition.
A 1995 Supreme Court case over Big Dipper noise resulted in restricted operating hours, while a 2005 resident action over ride noise prompted government intervention through legislation.
More recent planning disputes include a 2013 attempt by NSW planning authorities to demolish the Hair Raiser ride and a 2018 Land and Environment Court ruling requiring separate planning approval for new installations.
The current asset includes 17 amusement rides, the heritage-listed Coney Island, 7000sq m of building floorspace, Sydney’s Immersive Big Top and the 1935-built Crystal Palace, plus a 389-space carpark.
Recent capital works include a $30-million upgrade in 2021 that introduced nine new rides and a $15-million technology investment in the Big Top immersive entertainment venue.
The 3000sq m space was the brainchild of park chief executive John Hughes. It features hologram capability, 30 laser projectors, 100 ceiling-mounted speakers and thousands of LED lights.
CBRE’s Simon Rooney, who negotiated the sale with colleagues Paul Ryan and James Douglas, said the investment opportunity was unique.
“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,” Rooney said.
The property transaction includes a 40-year lease expiring in August 2044, plus a 99-year lease of the underground carpark.
As the site occupies government-owned land controlled by the Luna Park Reserve Trust, the sale requires trust consent to ensure its continued operation as an entertainment venue.
Hughes reports record ticket sales and visitation as the park approaches its 90th year, with plans for several new ventures including a Netflix partnership and the relaunch of the heritage-listed Wild Mouse roller-coaster.
The sale marks another chapter for the Art Deco-style attraction that opened in 1935 on the former Dorman Long workshops site used during Harbour Bridge construction.
The famous face remains unchanged and the sale was subject to ensuring “Luna Park remains a vibrant and successful amusement park for the enjoyment of the people of Sydney and NSW”.
