This article is from the Australian Property Journal archive
DIVERSIFIED financial services firm MA Financial has acquired the d’Albora marina portfolio for $225 million to seed its new MA Marina Fund.
The agreement to acquire the portfolio from fellow diversified financial services firm, Balmain Corporation, will see the purchase of Australia’s largest marina network which comprises 10 premium marinas across the eastern seaboard.
This includes Rushcutters Bay, The Spit and Cabarita Point in Sydney Harbour, two marinas adjacent to the Melbourne CBD, in addition to the management rights of the Port of Airlie marina at the gateway to the Whitsundays.
“We are excited to enter the marina sector and welcome this alternate asset investment class to our real estate portfolio,” said Julian Biggins, joint CEO of MA Financial.
“At MA Financial we are largely focused on the specialised and active management of alternative assets, so this unique investment and accompanying new Fund complement our existing solutions.
The marinas can accommodate more than 2,700 vessels when combined and are supported by a range of services, leisure, and tourist operations on site.
The purchase of the portfolio also includes the existing corporate management team and ongoing strategic support from Balmain, ensuring continuity for customers and members.
“Throughout economic cycles marinas have proven resilient, and the core d’Albora portfolio delivered strong earnings during the Global Financial Crisis and the COVID-19 pandemic,” said Biggins.
“The fundamentals and outlook for Australia’s marina market is extremely positive. The number of boat registrations on the east coast continue to grow, particularly among larger boats, outpacing the supply of new marina berths which is limited by a strict regulatory environment and approval requirements as well as the lack of available and suitably located development land and seabed.
“It’s clear that this supply-demand dynamic will continue to drive strong revenue and earnings for marina operators.”
The launch of the MA Marina Fund—a closed-ended fund, will provide investors with exposure to in-demand alternative real estate assets and is anticipated to attract interest from both domestic and international markets.
“We see a clear investment opportunity for our clients in this asset class. Marinas have characteristics and benefits that set them apart from traditional real estate investments,” added Biggins.
“They are defensive, cash generative businesses with approximately 90% of revenues relating to boat storage, property rental and boat maintenance which are of a recurring nature.”
Particularly investors looking for exposure to defensive, cash-generative assets, which are largely uncorrelated to other asset classes.
Balmain will also participate in the fund, acting as a cornerstone investor with an initial interest of 30%.
“We’re delighted to be able to expand the breadth of real estate investment opportunities available to new and existing clients of MA Financial,” concluded Biggins.
