Part 2: A growing institutional asset class.

Part one of this series began with a broad overview of the marina sector from a property perspective. It touched on the some of the main characteristics which are critical to marina valuation: quality of the core physical asset, contiguous commercial property operations, berth holder and tenant needs, opportunities to generate additional income, the importance of the leisure experience and most importantly, the active institutionalisation of the sector which recently began in the USA.

My overarching thesis across these two brief pieces is the fact that marina owners throughout the UK and Europe have an opportunity to benefit from this institutionalising trend. Those marinas that tend to be smaller, independently owned, operational businesses have an opportunity to become part of a well-managed, institutional real estate asset class, run by professional investors and property people.

For many, this means change, and while I recognise that change is not always welcome to some old school sailors, I would argue that the shift taking place is both welcome and necessary to modernisation of the sector. Yachting no longer operates in such a regional format, as it may have done in the past, but has become more of a global activity for many. Sailors who will fly to Europe or the Caribbean for yacht racing or charters will have seen what is available in terms of ‘destination marinas’. These sailors expect modern facilities, with a range of services and alternative activities for the non-sailors in the group.  Whether you own a carbon fibre racing yacht, a fibreglass production boat or a steel hulled superyacht, a modern, convenient and high-end customer experience is necessary. I see this as an opportunity for marina owners to re-invest in their assets for the next generation and give customers what they want.