Project/Case Overview
Property Type
Marina and Waterfront Assets
Client
Institutional Fund Manager
Reason for Service
Valuation Led Structuring Advisory
Preston Rowe Paterson was instructed by MA Financial Group to provide specialist valuation led advisory services in relation to the proposed MA Marina Fund, with particular focus on the structuring and commercial implications of concurrent sub leases across a diversified portfolio of marina assets.
The engagement required advice on the creation of concurrent lease and sub‑lease arrangements between PropCo and OpCo entities within a stapled fund structure, ensuring that the resulting interests were capable of independent valuation, commercially robust, and aligned with relevant State Government marina leasing frameworks.
Summary of Scope of Services:
Our advisory responsibilities encompassed several key areas:
Lease Structure Review
We examined the proposed concurrent lease and sub-lease arrangements, ensuring they operated effectively within the framework of current government head leases.
Valuation Support
Our team provided recommendations regarding commercial terms required to underpin valuation processes for both the concurrent lessor’s interest and the concurrent lessee’s interest.
Guidance on Key Lease Elements
- Clarifying definitions of demised premises, including land, seabed, improvements, plant, licences, and goodwill
- Establishing principles for determining commencement rent
- Developing rental review frameworks, such as CPI and market reviews
- Identifying approaches for managing outgoings and operating costs
- Advising on the extension of concurrent leases to align with head lease renewal periods
Collaboration and Review
We worked closely with Hamilton Locke during the drafting stage to ensure all provisions critical to valuation were accurately included. Our responsibilities also involved reviewing and commenting on third-party marina valuation reports, focusing on identifying methodological risks associated with lease term, perpetuity assumptions, and head lease renewal risk.
Asset Overview:
The MA Marina Fund comprises a portfolio of freehold and long term leasehold marina assets, including marinas operating over both dry land and seabed, with income streams derived from Marina berthing and moorings, Fuel sales, Hardstand and vessel servicing, Retail, office and food & beverage sub leases and Ancillary marina related use.
A number of the assets are subject to government head leases with finite remaining terms, percentage of revenue rental structures, and policy driven renewal frameworks, giving rise to complex tenure, valuation and risk considerations.
Outcome
The guidance offered to Preston Rowe Paterson’s client delivered:
- A concurrent lease framework that is defensible and suitable for supporting a stapled fund structure
- Comprehensive direction on rent determination and review processes, ensuring alignment with valuation industry standards
- Identification of valuation and risk concerns within existing third‑party marina appraisals
- A solid foundation for engaging legal counsel and investors regarding the commercial and valuation considerations associated with the proposed structure
This engagement demonstrates Preston Rowe Paterson’s expertise in:
- Complex leasehold and infrastructure style real estate assets
- Marina and waterfront property valuation
- Valuation led structuring advice for institutional funds
- Integration of legal, policy and valuation considerations in alternative asset classes
No of Marinas
11
Freehold and Leasehold Marinas
No of Wet Berths
1,608
Wet Berths
No of Dry Berths
1,203
Dry Berths
We Deal with the Mainstream & Specialise in the Complex for all asset classes
