Global interest expected in trophy Manly backpacker property

An extremely rare opportunity to acquire a freehold property in Manly Corso is expected to generate significant local, national and international buyer interest.

Peter Skerrett’s private family office Invergowrie Properties has appointed CBRE Hotels’ Hayley Manvell and Raymond Tran to steer the sale of the Boardrider Backpacker Manly, located midway between the beach and Manly Wharf.

The 1,158sqm, dual frontage stratum is being offered as a going concern, offering significant flexibility for an incoming owner as well as high brand visibility given the property’s high thoroughfare location.

It comprises 28 large accommodation rooms that can house up to 120 people, in a mix of four and six mixed and female dorms, private doubles, private deluxe rooms, and a two-bedroom apartment, many with Juliette balconies offering views to Manly Beach.

The property also features a common area, guest reception, coffee outlet, kitchen and a rooftop terrace.

CBRE Hotels’ Director Raymond Tran said, “Opportunities to acquire an accommodation asset in the tightly held Northern Beaches market are rare and, given the property’s footprint in the highly coveted Manly Corso, the campaign is expected to appeal to domestic and global investor pools, including major hospitality brands, owner operators, high-net-worth individuals and developers.”

Mr Tran added, “Given that the asset is being offered with vacant possession, the incoming owner will be able to pursue a range of future operating strategies. These include owner operation; engaging a third-party operator to drive top-line performance by repositioning the asset; or redeveloping the property for an alternate use.”

CBRE Hotels’ Director Hayley Manvell noted that the reopening of international borders and the growth in inbound international travel had created a gap in the market for flashpacker style accommodation to bridge the gap between budget travel accommodation and five-star hotels.

“Due to the pandemic a number of backpacker hostels were converted to alternate uses, leading to a real scarcity of budget accommodation in the market today, and consequently a substantial increase in bed rates and performance across the market,” Ms Manvell said.

“Given its trophy location there is significant scope to reposition Boardriders as a flashpacker asset or boutique hotel to cater to travellers wanting a more upscale and comfortable experience with social and communal areas, co-working space and food & beverage outlets.”

The site’s zoning and a development approval also adds redevelopment potential into the mix, allowing for the property to be converted into 12 one and two-bedroom luxury residences ranging in size from 52sqm to 101sqm, as well as ground floor retail.

This would capitalise on the current market fundamentals linked to a resurging labour market, all-time low rental vacancies and the return of overseas migration which, coupled with low supply levels, have resulted in Sydney’s record residential price growth.

“There really are no parallels for this asset on the market anywhere in Australia right now in terms of the compelling experiential accommodation and waterfront hospitality business mix,” Ms Manvell said.

“This is a generational opportunity, and we expect substantial and varied interest from high profile individuals, prominent hospitality groups, as well as developers looking to transform the property into a flashpacker asset, hotel or apartments.”

The property is being sold via an Expressions of Interest campaign closing Thursday, 07 September 2023 at 1:00pm (AEST) unless sold prior.