Luna Park Sydney Just for Fun aka Amusement Park at your Doorstep Project Presentation for Economic Investment Appraisal Prepared by Simon Tang 22 June 2002
Background Why Pick this project ?
Background • Managed by Metro Edgley – JV between Metro Theatre, Michael Edgley, Multiplex and Banker’s Trust • Park is re-opened in April 2004
Background • The Park is Owned by Luna Park Reserve Trust and Managed under Sydney Harbour Foreshore Authority • In Feb 2001 the development of the Park was declared as of “State Significance” and development consent (“DA”) responsibility was transferred from North Sydney Council to State Government
The Boring Part • $100 million Investment (Land is worth $10 million – owned by Luna Park Reserve Trust) • Expected Park Patrons 900, 000 p. a. • Expected Function Attendants 265, 000 p. a. • Calculation of the NPV ? ?
The Fun Part
All’s Well is Well ………. .
We Want More …. . • The managing director of Luna Park Sydney, Peter Hearne, said the company needed to pay off $10 million in debt with the proceeds of the 14 -storey building. … SMH 31 May
Noisy Neighbours Mosman Daily 10 June pp. 1
Other Costs • Blocked View • Noise • Traffic • Parking Issues • Drunken Patrons at Night • ….