Beachside Land Gifted in 1850, Leased, Never Sold: How the Catholic Church Earns From Manly

• The Catholic Church owns about 21 acres of beachside land at Fairy Bower in Manly
• The land came from a colonial gift of 60 acres on North Head around 1850
• Homes sit on leases of 20 to 99 years; extensions cost 1 per cent of property value per year
• When a lease ends without renewal, the improvements revert to the church

The Catholic Church owns about 21 acres of prime beachside land in the Fairy Bower area of Manly, Sydney, and leases it rather than selling, ABC News reported on June 21, 2024, in an investigation by Georgia Hitch.

Around 1850 the NSW Legislative Council gifted 60 acres on North Head to the Catholic archbishops for housing bishops. After building St Patrick’s Seminary, the church subdivided and leased the rest. Leases run from 20 to 99 years. Renewal costs 1 per cent of the improved property value for each year of extension, so a 50-year extension on a $15 million property costs $7.5 million. In 2020 an 80-year lease sold for $8.8 million. If a lease expires without renewal, all improvements revert to the church.

Greens housing spokesperson Max Chandler-Mather said “the church behaves like any other for-profit developer, making money off surging land and property prices.” Shadow housing minister Michael Sukkar said he was “confident that the money is being used for important mission work and charitable housing services.”

The ABC found the leasehold arrangement to be unique among Australian churches.

Leasing instead of selling lets a church keep its land for ever while earning income as values rise. Jamaican churches that own land in growing areas could consider long leases for homes, shops or offices, with fair terms for tenants and clear rules on renewal and what happens to buildings at the end. It is a way to fund ministry without giving up the asset, though, as Manly shows, it can also draw criticism if the terms look more commercial than charitable.

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