MA Marina Fund grows its portfolio with $33m deal for East Coast Marina in Manly, QLD

Alternative asset manager MA Financial (ASX: MAF) has lifted its exposure to the Queensland marina sector through the $33 million acquisition of East Coast Marina, the only private marina facility at Manly Harbour in Brisbane’s east.

The acquisition is the 13thproperty to join the MA Marina Fund portfolio and comes on the heels of a $20 million deal for marinas at Batemans Bay and Port Macquarie announced in October last year. 

The move also bolsters MA Marina Fund’s assets in Queensland where it already owns Horizon Shores on the Gold Coast and Port of Airlie in the Whitsundays. These are among 10 former d’Albora Marina assets in Queensland, NSW and Victoria totalling $225 million that seeded the MA Marina Fund in April last year.

East Coast Marina, which sits between the Royal Queensland Yacht Squadron and Wynnum Manly Yacht Club, comprises 330 marina berths and dry storage for 240 vessels, as well as 595sqm of commercial space with parking for 160 vehicles.

It is the only private marina at Manly Harbour, which has a total of 1,800 berths, making it Australia’s largest small boat harbour.

The property, which occupies more than 5.6ha of state leases along Moreton Bay, was placed on the market in August last year. The property, which was developed in 1980, had been in the same hands for more than four decades.

MA Financial says the acquisition cements its position as the largest marina group in the southern hemisphere, with its assets also including Rushcutters Bay, The Spit, and Cabarita Point in Sydney Harbour and Martha Cove on the Mornington Peninsula as well as two marinas adjacent to Melbourne’s CBD.

Julian Biggins, the joint CEO of MA Financial, says the addition of East Coast Marina provides continued momentum for the MA Marina Fund, a closed-end fund that is targeting an annual distribution yield of more than 7 per cent.

“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,” says Biggins.

“The performance of the portfolio has exceeded our expectations to date, and we believe the industry fundamentals support strong operating performance looking forward.”

The MA Marina Fund produces an internal rate of return of more than 13 per cent on its investments with the fund targeting growth through value-add projects and acquisitions.

MA Financial, which has $9.2 billion in funds under management, notes that East Coast Marina has scope for improved earnings and future development.