- Manly Wharf has been listed for sale with price expectations circa $80m
- The site originally served as a passenger terminal prior to its transformation into a retail and hospitality hub by TMG Developments
- The sale forms part of owner Robert Magid's plans to restructure TMG's asset portfolio
The long-term leasehold of Sydney’s iconic Manly Wharf has been listed for sale, with price expectations reported to be more than $80 million.
The retail and hospitality asset is currently owned by property tycoon Robert Magid’s TMG Developments after the company acquired the leasehold in 1995.
The Manly Wharf was originally built as a passenger terminal in 1855 before TMG transformed the asset into the destination it is today.
The heritage-listed site is home to 20 specialty tenancies, including some of Sydney’s most recognisable venues such as Hugo’s, The Wharf Bar, Sake, Queen Chow, El Camino, and the Bavarian Bier Café.
CBRE agents Simon Rooney and James Douglas have been appointed to the sale, which forms part of a larger structural change within TMG’s asset portfolio.
TMG recently sold off the Harbour Rocks Hotel in Sydney, the Hotel Lindrum in Melbourne, and a major Mulgrave development site in a bid to recycle and redirect capital.
Over 2.5 million commuters pass through each year
The sale of Manly Wharf is tipped to generate significant local and international buyer interest.
According to CBRE agent Simon Rooney, assets that have reached trophy retail asset status like Manly Wharf are historically tightly held, rarely traded, and highly sought after.
“The flexibility around the future potential to strategically remix the tenancy profile and capitalise on multiple value-add opportunities will be a major draw card for both domestic and international capital.”
Simon Rooney, CBRE
Potential buyers of the iconic site will have ample opportunity to also secure the long-term lease to Transport NSW, with the International Expressions of Interest campaign to remain open until March next year.
Manly Wharf is likely to be a profitable asset for buyers, thanks to what Mr Rooney has coined a “captive customer audience”.
The asset experiences a traffic of 2.5 million commuters and daytrippers through its ferry and bus terminals each year, and is further situated within a high-earning residential area.
The asset also carries a secure income profile, which offers between 3% to 4.5% per annum in-built capital growth potential.
“The property offers multiple value-add opportunities including precinct activation and improved amenity via the proposed Wharf 3 and Manly Cove Upgrade as part of the $205 million NSW Government maritime stimulus program.
There is potential for these works to commence in 2023, which will further enhance the profile of the precinct and drive additional income growth for the asset,” concluded Mr Rooney.
