No Fish Story: Hope Harbour Marina up for sale

Written by Steve Hunt

Wednesday, 26 March 2008

Prominent Gold Coast developer and major Hope Island land holder John Fish is looking to capitalise on the unprecedented demand for marina berths in Queensland by divesting of his multi-million dollar Hope Harbour Marina.

Colliers International Gold Coast has listed the marina for sale as Mr Fish focuses his attention on the ongoing development of his $2.5 billion Marina Quays development. The marina adjoins the recently completed first stage of his Marina Quays project, the $110 million Harbour Side apartments, and the Marina Quays International Hotel which enjoys an occupancy of more than 80 per cent.

The offering comprises 279 wet berths, the harbour master's building, refuelling wharf, the Couran Cove Ferry Terminal including adjoining hardstand and carparking, and eight industrial sheds.

The property's current combined income is in excess of $2.8 million with the potential to increase through further development. The sell-off of one of the northern Gold Coast's most prized assets comes at a time when marina berths are in high demand.

The latest Queensland Midwood Report indicates that the majority of marinas in Queensland are leased at or near total capacity. Brad Johnston and Darrell Irwin, of Colliers International Gold Coast, are marketing the marina for sale by tender with offers to close on May 8, 2008.

Mr Johnston said the sale presents a unique opportunity for a buyer positioned to capitalise on the current demand for marine based properties. He said the offering has the potential to freehold existing berths and further develop the shore facilities to expand carparking, boat stacking and factory areas, which in turn would increase the combined income from the facility exponentially. "The Fish Group has significantly upgraded the marina over the last few years and a great deal of further development potential still remains, so this offering represents a unique opportunity in an area where there are no opportunities of this type remaining," Mr Johnston said.

"Hope Harbour is established as one of Queensland's finest marinas with unrestricted deep water ocean access, superb facilities and a position that provides ready access to Moreton Bay and the Broadwater."

The marina is within one of Australia's most prominent boating precincts and is surrounded by a range of related industry along with the residential communities of Marina Quays, Sanctuary Cove and Hope Island Resort. According to Mr Johnston the current demand for marina berths combined with increasing boat registrations and the long-term income potential of leasing or selling individual berths makes Hope Harbour a highly attractive investment.

"The recent sale of 51 marina berths within six weeks at the nearby Hope Island Resort Marina demonstrates the long term investment returns that can be achieved and the current demand for berths," said Mr Johnston

"The berths at Hope Island Resort Marina are being sold on 20 year leases at a rate of approximately $9,000 per lineal metre. "Hope Harbour Marina is in a better position than this, some 45 minutes closer to the Broadwater," he said.

"The ability to purchase an entire marina with potential for expansion and located within one of Australia's most popular boating arenas is certainly a rare opportunity."

With the establishment of the Gold Coast City Marina and major boat builders Riviera and Maritimo based in the area, the North Shore and Hope Island in particular are becoming the focal point of the Gold Coast's marine lifestyle.

The sale of Hope Harbour Marina will allow the Fish Group to concentrate on the company's flagship project, the $2.5 billion Marina Quays development, one of the Gold Coast's largest masterplanned communities. John Fish, head of Fish Developments, said the sale is strategically timed to take advantage of the current market for marina facilities.

The Fish Group purchased the marina at Hope Harbour in two stages; the first in February 2003 for $3.8 million and the balance in November 2003 for $6.5 million. At the time of purchase the marina had only 150 berths installed and the Fish Group has since added four additional marina arms to bring it to its current capacity of 279 wet berths. After purchasing the facility Fish Developments invested $2.5 million constructing the Couran Cove Ferry Terminal.

Hope Harbour Marina caters for vessels from seven metres to 35 metre super yachts which frequent the marina due to its safe deep water ocean access and first class facilities. Research from Colliers International has shown that the number of recreational boat registrations in Queensland is increasing at six percent each year, a rate outpacing population growth.

This increase in boat numbers, combined with the shortage of marine berths, is driving up prices with the research showing the average price of a 12 metre berth at Gold Coast City Marina has more than doubled in five years from $82,000 in 2003 to $175,000 in 2007.