This article is from the Australian Property Journal archive
ALTERNATIVE real estate asset manager MA Financial has expanded its marina specialist fund, acquiring the East Coast Marina in Brisbane’s Manly Harbour for $33 million, capitalising on investors appetite for the non-core commercial property assets.
The purchase expands the MA Marina Fund’s footprint to 13 marinas since it was established by MA Financial in April, making it the largest marina group in the southern hemisphere.
The East Coast Marina boasts 330 berths, dry storage for 240 vessels, 595 sqm of commercial buildings and 160 vehicles car park. It is the only private marina in the 1,800-berth Manly Harbour, which is Australia’s largest, and had been held in the same ownership since its original development.
The closed-end MA Marina Fund’s portfolio includes locations at Rushcutters Bay, The Spit, and Cabarita Point in Sydney Harbour, as well as two marinas near Melbourne CBD and two regional NSW marinas, in Batemans Bay and Port Macquarie. It is targeting an annual distribution yield in excess of 7% and a 13%-plus IRR with potential for further growth by investing in value-add projects and additional acquisitions, it said.
Joint CEO of MA Financial, Julian Biggins, said that the fund’s purchase of the East Coast Marina aligns with the company’s strategy, responding to the growing investor interest in alternative real estate assets.
“Since launch in April 2023, we have received significant and sustained interest in the fund from domestic and international investors, keen for exposure to defensive, cash-generative assets largely uncorrelated to other asset classes.
“The performance of the portfolio has exceeded our expectations to date, and we believe the industry fundamentals support strong operating performance looking forward.”
The marina fund was seeded with MA Financial’s $225 million acquisition of the d’Albora marina portfolio. It picked up the Batemans Bay and Port Macquarie marinas in October for $20 million from Marprop Real Estate Investors founder and managing director, James Marshall.
MA Financial Group is largely focused on the active management of alternative assets and has significant investment and operational capability in retail, accommodation hotels, hospitality, and other alternative real estate assets.
