Private equity-backed marina groups look to cash in on superyacht boom
Fragmented industry dominated by independent operators has become fertile ground for consolidation
A number of US marina businesses are exploring full or partial sales as their private equity owners look to cash in on a rising demand from superyachts.
Private equity group Centerbridge Partners was working with advisers to offload a minority stake in Suntex Marinas, which could value the business at about $4bn, according to people familiar with the matter.
KSL Capital Partners, the leisure-focused private equity group behind Third Space gyms, had also hired advisers to sell its Southern Marinas business, eyeing a valuation approaching $1bn, separate people said.
Private equity groups are increasingly viewing marinas, historically a fragmented industry dominated by independent operators, as a fertile ground for their roll-up strategy, where they stitch together standalone companies, boosting margins.
Earlier this year, Blackstone’s infrastructure arm struck a $5.6bn deal to buy Safe Harbor Marinas, the largest US marina group and superyacht servicing business, from Sun Communities, a real estate investment trust.
Similar to infrastructure assets, slip rentals at marinas, which normally involve contracts lasting at least a year, provide steady, reliable cash flows. Moreover, premium marinas catering to superyachts normally enjoy consistently high occupancy rates.
The popularity of superyachts among very wealthy Americans had also allowed marina businesses, such as Suntex and Southern, to implement pricing strategies which have boosted earnings, the people said.
Dallas-headquartered Suntex operates more than 90 marinas, including in New York, Florida and California, while Palm Beach, Florida-based Southern operates dozens of marinas largely in Florida and across the eastern seaboard.
There were no guarantees that either sale process would result in a deal, the people warned, adding that Centerbridge and KSL might opt to hold on to the assets for longer.
Centerbridge, which has $42bn of assets under management, first invested in Suntex in 2021, joining Resilient Capital Partners and the management team as equity owners. Last year Centerbridge, alongside some of its investors, pumped $1.2bn into Suntex to buy up more marinas across the US.
KSL, which has $23bn of assets under management, bought a majority stake in Southern Marinas in 2021. KSL owns Southern alongside the original management team.
Centerbridge, KSL and Suntex declined to comment. Southern did not immediately respond to a request for comment.