Financing for Marina Projects
The latent demand for marinas worldwide is estimated to be over $24 billion. Of late, the traditional “sun, sea, and sand” tourism model has become saturated and one area identified for specific development is yachting and marina services, a sub-sector that is widely regarded as having significant economic potential, according to the UN. Capital Corp has been involved in providing financing for numerous marina projects over the years and has developed a special expertise in this sector. Our expertise in project funding combined with our knowledge of the marina industry has made us uniquely qualified to provide our clients with the best possible customized funding packages for their marina project, whether standalone or tied to a bigger overall project.
Financing a marina means that investors need to know what the marina has to offer and how its revenue stream is constructed. Fee-based services are usually included in long-term rental agreements while visiting yachtsmen usually have the option of buying each amenity from a fixed schedule of fees. Arrangements can be as wide as a single use, such as a shower, or several weeks of temporary berthing. Some marinas offer boat storage including rack storage and dry storage/dry stacking yards.
Organization & Ownership
Marinas are generally owned and operated by private clubs, especially yacht clubs — but also as private enterprises or municipal facilities. They can sometimes also be standalone private businesses, components of a resort, or owned and operated by public entities. When looking for funding, providing investors with an organization structure goes a long way to best present your marina project.
Here are the types of financing available to fund marina projects:
- Debt financing
- Equity investment
- Acquisition financing
- Strategic partnership
We work in the range of USD $7 million up USD $500 million+ worldwide.
Funding a Marina Project
A great feature in funding marina projects is the fact that:
1) Traditional funding instruments can and often are used, and
2) NO special accommodations or arrangements need to be added on to a funding arrangement involving a marina, whether it's stand-alone or part of a bigger overall project.
The best case scenario is if you (as project promoter/owner) have a ready list of clients or even pre-sales. Why? Because for investors it is a start to mitigating risk, not to mention that it is also a guaranteed payment on the debt due to the fact that that you have proof that there is not only demand but people are ready to buy (or already have bought) marina berths; thus, there is a guaranteed income from the marina.
The Funding Process
On the business end of a marina project, the promoter/ project owner is required to produce essentially the same basic information and documents as he/she would in any other type of project:
Feasibility Study (if you have it) and/or Environmental Impact Report
Any and all information and documents connected with the type of marina construction
What can often be the (only) tricky part of funding a marina project is assessing the technology and building materials that will be used to build it up. But renown manufacturers do exist and are often favored in these types of deals.
There are many financing tools that we use in marina transactions in order to create the best-fitting financing structure, such as:
Debt financing (Senior/Jr)
... or a combination of different instruments!
45 Years of Experience in the International Banking Industry
Experienced Project Financing
Awarded in Orlando's Business Hall of Fame for 12 Years Running
2017 Gamechanger of the Year Award Winner
Are you a broker looking for new funding sources for your client(s)?
We always appreciate the interest garnered by the service we provide. While we do not have agents representing us in any countries of the world, we still get most of our business from banking consultants, introducers, and brokers worldwide.
If you are a broker, banking consultant, or professional introducer, we welcome the opportunity to do business with you; and in that respect, if you are interested to submit any projects that require funding, we invite you to fill out the contact form below.