The family-owned company that redeveloped the Manly Wharf as a food and beverage destination in the mid-90s is now placing the iconic property up for sale, enlisting CBRE as its real estate agency in the hope of hooking international and local buyer interest.
The property, built in 1855 as a passenger terminal and currently part of the portfolio of Robert Magid’s TMG Developments, is home to approximately 20 specialty tenancies including venues such as Hugo’s, The Wharf Bar, Sake, Queen Chow, El Camino and the Bavarian Bier Café.
As part of an intergenerational change in the Magid family's company which has held the long-term leasehold interest for the Manly Wharf site since 1995, TMG Developments has also divested the Harbour Rocks Hotel in Sydney, the Hotel Lindrum in Melbourne and a major Mulgrave (VIC) development site in order to recycle and redirect capital.
"Trophy retail assets such as Manly Wharf are historically tightly held, rarely traded, and highly sought after," says CBRE's Simon Rooney, who has been appointed to steer the sale alongside James Douglas.
"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."
An international expressions of interest campaign will close in March next year, providing an opportunity to acquire the long-term lease to Transport NSW.
Rooney says Manly Wharf has a captive customer audience, generated by the approximately 2.5 million commuters and day trippers who pass through the adjoining ferry and bus terminals each year, complemented by a high-earning residential catchment.
"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," he adds.
"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."
TMG Developments' pricing expectations for the sale are at $80 million.
The freehold land itself is owned by the government.
Get our daily business news
Sign up to our free email news updates.