Street Talk First Look

Tuesday

April 9, 2024

Street Talk

First Look

Good evening,

Taylor Swift has done two rounds of Sydney Zoo. Now, it’s prospective investors’ chance to explore the grounds.

Street Talk understands the privately held zoo, hosting 4000 animals in Sydney’s western suburbs, is looking to bring in new investors to institutionalise its register and expand operations.

A 14-page teaser, seen by Street Talk, is in front of interested parties and talks up Sydney Zoo’s potential growth once Sydney’s second airport opens. It’s also banking on western Sydney’s expanding population, tipped to grow by 850,000 by 2041, and on drawing visitors from Sydney’s southern and eastern suburbs after the opening of the M8 tunnel.

Among its growth initiatives is a new function centre, which operators think will bring in $2 million to $3 million in gross profit. It would also spread out across 3.1 hectares of undeveloped land and increase its capacity for events.

Sources said Sydney Zoo was keen on getting a long-term institutional investor, such as a superannuation fund, on board. However, it is early days for the process, and the owners are yet to formally appoint an adviser. They have been meeting investors with an interest in social infrastructure or social property assets. While a valuation is yet to surface, the zoo’s replacement costs are expected to sit in the mid-$100 millions.

Although the capital raising could spell a departure for existing high-net-worth and family office investors, some of whom have been on the register for almost a decade and held firm through the difficult COVID-19 pandemic period, Street Talk understands none are running for the exit.

Read the full story tomorrow and more on the Street Talk page.