Noah’s Backpackers, Bondi Beach, ‘one of the biggest development opportunities in the east’, for sale
Bondi Beach’s famous 260-bed Noah’s Backpackers has hit the market and it’s being pitched as one of the biggest development opportunities in Sydney’s east.
The Colliers sales agents, Miron Solomons and Matt Pontey, in conjunction with Oxford Agency’s Daniel Marano and Ralph Garofano, aren’t offering a price guide in the expressions of interest campaign closing May 5.
But developers have had their eye on the three buildings — with huge rooftop space commanding amazing views of the beach and ocean — on the prominent 1087sq m corner at 2-12 Campbell Pde for years.
The site’s value is a topic of much conjecture.
Some sources say it’s worth “$60m all day long”. Others are even saying $100m.
There’s even a a rumour that an offer of $74m or $75m has been rejected.
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Noahs Backpackers cost the Harkhams $5.6m in 1997.
They bought the block of flats above the laundromat for $8.5m in 2020.
The buildings could potentially be the site of glitzy new apartments or even a high-end hotel, though the buyer would need to negotiate with Waverley Council to try to up the 12.5m height limit.
Property records show that a company owned by Terry Harkham, Geraldine Harkham and California-based Efrem Harkham (founder and CEO of Luxe Hotels and Luxe Collection) bought the two main corner buildings that form Noah’s for $5.6m in 1997 and the four-storey block of flats above a laundromat next door for $8.5m in 2020.
The block of flats is also being offered up as part of the sale.
Richie Harkham has recently been enjoying the sun at Miami Beach, Florida. Picture: Instagram
The Harkhams have a range of companies, including Harkham Wines in the Hunter Valley.
Richie Harkham, who operates Noah’s with his brother, Simon, is a young entrepreneur who also runs a charity called Hark Angel that’s built nine schools in developing nations.
“Over 2000 children have now been given the opportunity to receive an education and change their lives,” the Hark Angel website says.
Richie is also a keynote speaker and has been recently enjoying the sun at Miami Beach, Florida, judging by his Instagram feed.
The rooftop at Noah’s is massive.
It has amazing views over Bondi Beach.
The backpacker industry has been far from profitable in recent years, with the number of working holiday makers plunging from $141,000 to 2000.
They’re trickling back, with more than 14,000 arriving from overseas since December, but they’re still at just 10 per cent of pre-pandemic levels.
But it’s likely the buyer would only be operating the backpackers at the site temporarily.
Whatever the price, the sale of Noah’s is clearly going to smash the current street record of $26m for the Ben & Jerry’s Ezy Mart site at 134-138 Campbell Parade, which consists of eight Art Deco flats above retail shops.
That sold at auction on December 17, 2020, with Damien Cooley presiding. Solomons and Pontey were the sales agents with Steffan Ippolito of IB Property.
134-138 Campbell Parade, Bondi Beach, sold at auction in December, 2020, for $26m.
The Ben and Jerry’s site still hold the street record.
Regarding the latest site, Solomons said: “This is by far the largest and most compelling development opportunity delivered on the Eastern Beaches in the last decade.
“It is such an iconic gateway position and we will undoubtedly receive interest locally, interstate and internationally for this Bondi icon.”
Pontey said apartments on the site could likely better price records being broken in the Sydney CBD and Double Bay of above $100,000 per sqm.
“It is only a matter of time before the right development is delivered to Bondi Beach which will achieve these exceptionally high revenues in a market which arguably has better amenity and lifestyle.”
F45 founder Rob Deutsch has the block of flats at 56 Campbell Pde, Bondi Beach, back on the market with a $25m price guide. He’d bought the site for $20.65m at auction in December, 2020.
Proposed residences at the rear of 56 Campbell Parade.
Meanwhile, F45 gym founder Rob Deutsch – who sold his Bronte beachfront home at auction on Saturday for $17.7m – has his block of flats at 56 Campbell Pde back on the market.
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He’d bought the site for $20.65m in December 2020 at auction and had plans to redevelop it into a family home.
Raine and Horne’s Albert Sassoon and Ric Serrao have a $25m guide.
Deutsch is now on the hunt for a family home closer to the harbour and is known to have been looking at several in Bellevue Hill.
