Project Overview
Client
Port Authority and Industrial Operator
Property Type
Club & Marina (Specialised Leisure / Waterfront Infrastructure)
Reason for Service
Independent Fair Value Assessment for Financial Reporting Purposes
Preston Rowe Paterson was engaged to undertake an independent Fair Value assessment of the Royal Motor Yacht Club Broken Bay located on the eastern foreshore of Pittwater within Sydney’s Northern Beaches, approximately 37km north of the Sydney CBD for financial reporting purposes in accordance with AASB 13.
The engagement required analysis of a complex, income producing waterfront asset with both freehold and Crown lease components, multiple revenue streams, and limited comparable market evidence.
Key complexities included a hybrid tenure structure comprising both freehold ownership and a Crown lease expiring in 2044, as well as specialised zoning constraints under RE2 Private Recreation and W2 Waterways which limited alternative use potential.
The valuation was further challenged by a scarcity of directly comparable marina transactions, requiring the adoption of broader geographic evidence and the application of professional judgement. Additional considerations involved the need to clearly separate the underlying real estate value from business goodwill, alongside a reliance on trading data within a post COVID and inflationary market environment.
The Challenge
This valuation required assessment of a highly specialised, integrated waterfront asset, combining:
- Licensed club operations
- Marina and berthing infrastructure
- Leasehold water-based tenure (Crown lease)
- Multiple revenue streams (hospitality, marina, gaming, fuel, sub-tenancies)
- Limited comparable market evidence
Asset Overview:
The Royal Motor Yacht Club comprises a large scale, integrated waterfront asset located on the eastern foreshore of Pittwater within Sydney’s Northern Beaches, approximately 37 kilometres north of the Sydney CBD. The property includes a combination of freehold land and Crown leasehold tenure, supporting a purpose built club facility and extensive marina infrastructure.
The asset incorporates a four level clubhouse with hospitality, gaming, administration and support areas, together with a substantial marina offering fixed berths, moorings, slipway facilities and marine services. Operations are underpinned by multiple income streams including marina berthing, hospitality and events, fuel sales, gaming and sub leased marine services, reflecting a diversified and highly specialised leisure and waterfront infrastructure asset.
Valuation Methodology
Given the specialised nature of the asset, Preston Rowe Paterson adopted a multi-method valuation framework in accordance with AASB 13:
Primary Approach
Capitalisation of Net Operating Profit (NOP)
- Normalised trading performance
- Adjusted for non-operational items
Cross-Check Approaches
Super Profits Method
- Separation of real estate vs goodwill components
Investment Income Capitalisation
- Market rental modelling of individual components
Depreciated Replacement Cost (DRC)
- Land + improvements benchmark
- Used for reasonableness and asset-level validation
This engagement demonstrates Preston Rowe Paterson’s expertise in:
- Valuation of highly specialised assets (marinas, clubs, infrastructure);
- Integration of income, cost and market approaches;
- AASB 13 / IVS-compliant reporting;
- Handling limited evidence environments with defensible methodology; and
- Separation of real estate vs operational value components.
Outcome
The outcome for the client was an audit compliant Fair Value assessment in accordance with AASB 13, providing a transparent breakdown between real estate and goodwill components, establishing a robust and defendable valuation framework for financial reporting, governance and audit purposes, and enabling informed decision making in a period of market uncertainty.
67,262m²
Total site area
15,331m²
Freehold
51,930m²
Leasehold (Crown)
Strengths
- Prime waterfront location in tightly held Northern Beaches marina market
- Large-scale, established marina asset with diversified income streams
- Significant operational integration (club + marine)
- Limited direct competition and high barriers to entry
Constraints
- Zoning restricts alternative (non-recreational) uses
- Dependence on Crown lease tenure
- Exposure to operational trading performance
Market Context
Valuation prepared during:
- Post-COVID recovery phase
- Rising inflation and interest rates
Evidence base required:
- Broader geographic benchmarking
- Use of dated evidence with professional adjustment
A total of
256
fixed berths
A total of
38
swing moorings
A total of
18
club moorings
We Deal with the Mainstream & Specialise in the Complex for all asset classes
