Irish property investment company Ailesbury Investments has purchased a marina in Cape Cod Massachusetts in the US for just under €10 million. The Marina  is in West Dennis, Cape Cod, and has 160 wet slips, 180 dry racks and various other marina-related property, service and boat sale faciliities and operations.

The marina is fully occupied and generates very strong cash flow.  The company expects the internal rate of return (IRR) on the investment to be more than 30%.

“We have put together a comprehensive plan to allow us and our investors maximise our return on this investment,” said Frank Long, an director of Ailesbury Investments. “As a propery with a very healthy cashflow, the marina will continue to be operated by the existing owner, and in parallel, we will undertake a number of improvements to the facility to add value to the underlying marina assets.”

Long said marina berth fees are increasing at up to 10% per annum and waiting lists for berths are long. He said there was also a significant number of high margin new boat sales.

“With ownership of the underlying waterfront real estate assets, a very attractive model can be created to capitalise on the opportunity and generate very strong investor returns,” he said. “We will hold the assets for a couple of years after the improvements are completedn and expect to provide an exit to our investors through the sale of the various components of the marina.

We are confident that a very healthy IRR of more than 30% will be generated.”

Long said that a surge in yacht sales had meant that marinas are booming worldwide. “New marinas can take more that a decade to develop so throughout America quese are grwoing,” he said. “This is particulary apparent in the affluent area of Cape Cod with its strong, wealthy boating community.”

The marina is a pary of a new Greater Boston Area commercial property portfolio that will be shortly launched by Ailesbury Investments, which is expected to include othe significant properties in Massachusetts.

Ailesbury is also involved in a warehouse redevelopment in Florida, the development of a site next to Disney in Florida and the development of a hotel and residential tower in New York City.