Marinas appeal to investors

Marinas are gaining appeal with the investment community according to a noted USA expert speaking in Sydney next week. The Global Marina Institute, through its partner the Marina Industries Association (MIA) will be conducting the second annual Marina Investment Seminar in Sydney on Monday 12 October.

Keynote presenter at the Seminar is Gerard H. McDonough, MAI, FRICS a highly respected marina valuer from Integra Realty Resources in the USA. Jerry will provide insights into the demand for marinas as an asset class in the USA. According to Jerry there has been a strong upswing in investor demand for marinas. “It is as if the light has suddenly been turned on: equity funds and institutional investors are finally realising the durability of marina income streams and the challenging barriers to entry unlike other assets where over development can be an issue. They like the fact that the income streams are very predictable. When demand grows in other property asset classes the supply tap is turned on. With marinas this is not the case. Supply is extremely constrained and the investment community is awakening to the appeal of marinas as an asset class.”

Andrew Chapman, MIA President, Director of Gulf Marina Management and owner of The Marina Hindmarsh Island commented that the pick-up in investment in marinas from outside traditional marina industry channels was also evident in Western Europe and Australasia. “Recent marina sales are attracting a broader spread of investors. The return on invested capital offered by marinas is proving attractive in this constrained economic climate.”

Jeff d’Albora, past MIA President and director of Dalcorp PL said marinas can be a very competitive investment class. “For new investors, due diligence and gaining a thorough understanding of the characteristics of the sector is essential. The MIA’s Investment Seminar provides valuable insights for buyers, sellers, lenders and professionals. I recommend participation in the Seminar for anyone wanting to improve their knowledge of marinas as an asset class.”

MIA Industry Education Officer Ian Winestock said the interactive Seminar is limited to 20 participants and registration is required.  Details can be found on the MIA web site.