For many years, up to and including 2017, the number of individual marinas sold in the UK hovered around half a dozen each year, of the 600 or so trading marina businesses in operation. As has occurred in many other trading leisure sectors, private equity, seeking opportunities to utilize capital to improve investor returns, then took an interest and in 2018 approximately 20 marinas were sold, with a similar number transacting in 2021. This track through the leisure industry has proved profitable for private equity, notably in the holiday and residential home park, and garden centre sectors, amongst others and is likely to prove the same for the marina sector.
2015 saw the Wellcome Trust buy the Premier Marina portfolio of 8 marinas from Blackrock. This was the first in a line of larger deals in the market place. Private equity house Lloyds Development Capital bought the British Waterways (now Aquavista) 18 marina portfolio in late 2018, . This had a dramatic effect on the market, as the multiples that private equity are happy to pay for sustainable/projected profits in order to meet their investors criteria, are substantially higher than the market was used to. For freehold large marinas we were no longer seeing 10 to 12 multiples but 14, 16 and even 18 and over. Aquavista went on to purchase Castle Marinas’ 11 site portfolio at the end of 2021 and Premier Marinas added Universal Marina on the Hamble to their portfolio, these lower yields in the sub 6% to 7% range look here to stay. The sale of Bosham Harbour in 2019 illustrated that, for alternative buyers to compete, similar yields have to be employed.
But, as in other leisure markets, not every property suits the private equity portfolio and pocket. Whilst Universal was a good add-on for Premier Marinas at a strong profits multiple, with its 240 berths and multi-use buildings in a strong location, smaller marinas or properties with over-reliance on non-marina income may not appeal and yields will move out to 8% to 10%. Leaseholds are also not popular with the potential for yields to move out further still.
In the last year Savills have sold the 491 berth Gillingham Marina on the Medway, the 77 berth Cove Marina at Norwich, the 150 berth Goole Boathouse marina in the East Riding, the 45 berth Top Farm marina on the Shropshire Union and Eastlands Boatyard and moorings in Hampshire. These have illustrated the new market dynamics with a variety of different types of buyer.
Over 75% of UK marinas have under 250 berths and operate on a sub £1m turnover (source BMF) so the target market for the private equity buyer is quite small, and lifestyle and individual operators pay keener prices for the more modest sized marinas. In all though some 100,000 berths are available across the UK for the national 3.5m cruising population and with marina occupancies at an average of approaching 90% sound investment by well-funded buyers is likely to offer a good return going forwards.