(Feb 24): A unit of Blackstone Inc agreed to acquire a marina and yacht servicing business for US$5.65 billion (RM24.95 billion) in a bet on US boaters.
 
Sun Communities Inc is selling Safe Harbor Marinas to affiliates of Blackstone Infrastructure in an all-cash transaction, according to a statement on Monday. The price, which is subject to post-closing adjustments, is roughly 21 times Safe Harbor’s 2024 funds from operations, Sun Communities said.   

Sun Communities, which also invests in communities for manufactured housing and recreational vehicles, acquired Safe Harbor in 2020, paying US$2.11 billion at a time when Covid-19 was driving renewed interest in boating. The company added to Safe Harbor’s portfolio of marina real estate, and expects to book a gain of about US$1.3 billion on its four-year investment, according to the statement. 

Safe Harbor owns 138 marinas in the US and Puerto Rico, Blackstone said in a separate statement. 

While boat sales tend to ebb and flow with consumer sentiment, storage slips tend to be in short supply in all economies, creating opportunities for marina owners to modernise properties and drive higher rents. A trend towards larger superyachts with richer owners has also created opportunities for marinas to sell more services.

“Marinas benefit from key long-term thematic tailwinds, including the growth of travel and leisure as well as population inflows into coastal cities,” said Heidi Boyd, senior managing director in Blackstone’s infrastructure business. “We believe Safe Harbor is the best-positioned company in this sector.”

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