Rising Demand Drives Sydney Marinas’ Expansion Plans

A wave of marina developments is hitting Sydney shores as plans for expanded on-shore facilities and berths are filed at two Harbour locations.

D’Albora Marinas has filed applications for proposals at Darling Point and Mosman.

The $12.3-million Darling Point proposal calls for the demolition of the terrestrial building at 1B New Beach Road, as well as the construction of a mixed-use two-storey replacement comprising retail and dining spaces, a gym, offices, and workshops. The redevelopment would also include like-for-like replacement of on-water infrastructure.

Meanwhile, the $6.7-million Spit Marina redevelopment at Mosman proposes refurbishments of existing facilities, while a separate application is under way for increased berth spaces at the site.

In April 2023, the then 10-facility d’Albora portfolio was acquired by alternatives investor MA Financial from Balmain Corporation for $225 million, which then launched a fund to continue expansion.

At the time, MA Financial joint chief executive Julian Biggins said that marinas “have characteristics and benefits that set them apart from traditional real estate investments”. 

“They are defensive, cash generative businesses with approximately 90 per cent of revenues relating to boat storage, property rental and boat maintenance, which are of a recurring nature,” Biggins said.

The d’Albora network was already Australia’s largest operator within the asset class and has since grown to 13 facilities across the eastern seaboard.

Further south, a new $20-million undercover marina has opened at Taren Point, Sutherland, with berths for vessels up to 80 feet, and dry-boat storage for 160 vessels up to 40 feet.

▲ The new family-owned Marina Bayside at Taren Point benefitted from a $350,000 NSW government development grant.

The Marina Bayside is the only undercover dry-boat facility in the city’s south with direct water access, excluding the need for ramps or trailers. Other services include a 65-tonne travel lift, hardstand areas for vessels up to 75 feet, and shipwrights.

The Cavanagh family, including Cavi Property Group founder Jason Cavanagh, are behind the redevelopment of the site, which was previously the Lewis Anchorage marine repair and maintenance yard. The family is also involved in the boating industry.

Marinas were traditionally family or club-owned, and their on-water facilities require continual refurbishment due to exposure.

Sites for on-water facilities at commercial marinas in Sydney Harbour are leased from Transport for NSW, with capital expenditure and public benefit uses providing additional tenure.

Transport for NSW is also the consent authority, and facilities and uses that provide public benefit are considered in development applications. 

NSW Crown Lands has similar functions for commercial marinas outside of Sydney Harbour.

Demand for berths has increased steadily over time, as boat ownership and vessel sizes have grown. Investors and developers have become increasingly interested as the class proved out demand, resilience and professionalisation during the Global Financial Crisis and the pandemic.