The Irish Times - 7th May 2007


Ailesbury raises $20m for projects - 7 May 2007

Ailesbury Investments, the Irish-owned property investment company, has agreed terms to acquire a marina in the exclusive Massachusetts resort of Cape Cod for $14million (€9.64m).

The marina is fully occupied and includes related properties such as boat servicing and sale facilities.

It is already generating a very strong cash flow, according to Ailesbury, which also expects the internal rate of return on the investment to be more than 30%.

Director Frank Long said: “we have put together a comprehensive plan to allow us and our investors to maximise our return on this investment.”

“As a property with a very health cash flow, 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.”

“Marina berth fees are increasing at up to 10% per annum and waiting lists for berths are long. Combine this with significant volumes of high margin new boat sales and you have the basis for a very healthy business.”

“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.”

We will hold the assets for a couple of years, after the improvements are completed and expect to provide an exit to our investors through the sale of the various components of the marina.”

The marina is part of the Greater Boston area commercial property portfolio that will be shortly launched by Ailesbury Investments and is expected to include other significant properties in Massachusetts.

Mr Long said: “ This marina is located on one of the most sought after locations in the north-east of the Us. The economy of Massachusetts has been soaring recently, growing at four times the national US rate during the first quarter of 2007. There has never been a better time to invest in the marina properties.”

“Due to the surge in yacht sales the world’s marinas’ are booming. Waterfront space is already in short supply but when added to a surge in demand, marinas are becoming very attractive investments.”

“New marinas can take more than a decade to develop so throughout America queues are growing. This is particularly apparent in the affluent area of Cape Cod with its strong, wealthy boating community.”