Port Corporation to buy marina development

The Marsden Cove marina and adjoining commercial complex acquisition will be funded by a mix of equity and bank debt. Photo/Supplied

Northland Port Corporation has reached conditional agreement with Hopper Developments to buy the freehold title of the 230-berth Marsden Cove marina and adjoining commercial complex for $6.95 million.

Corporation chief executive Graham Wallace said the acquisition, to be funded by a mix of equity and bank debt, would be effective from July 1.

The sale covers freehold title to a 6.2ha area, including the 4.5ha marina and 1.7ha of land and infrastructure adjacent to the corporation's existing land holdings at Marsden Pt.

Mr Wallace said it also included 1100sq m of high quality, well positioned commercial and retail space and a two-level building, which accommodates the marina office and berth holder facilities.

The agreement excludes any of the residential land associated with the neighbouring Hopper Developments' housing estate at Marsden Cove.

Mr Wallace said ownership of the marina would help the corporation open up a second front of development on the adjacent land that it owned.

"It's an important gateway to this area of our land holdings," he said.

"By promoting the growth of new marine service businesses at the marina, we plan to stimulate new demand on our land from a range of potential downstream service and retail providers."

Ownership of the marina's freehold title is significant as other marinas are almost invariably operating under some form of leasehold title.

This gives the company the ability to respond quickly to market demand, adding value to the infrastructure already in place by developing it to maximise appeal to boat owners and businesses wanting to establish themselves there.

"The marina's existing infrastructure includes world-class mooring with customs facilities, a fuel dock and a range of waterfront retail services catering for the marina, boat owners and the neighbouring residential community," Mr Wallace said.

"One of Northland's most popular public boat ramps is also situated within the overall Marsden Cove marina complex."

The corporation intends to undertake further development of the site on a phased basis and potential future development opportunities include a vessel haul-out facility, a dry-stack storage system for smaller boats, marine chandlery and a wide range of servicing facilities.

"The quality of the assets we're buying - prime waterfront land with an established infrastructure - is testament to the values and standards of Hopper Developments," Mr Wallace said.

"The opportunity exists to make Whangarei Harbour in general and Marsden Cove Marina, in particular, the destination of choice for long-distance yachties arriving in and departing from New Zealand.

"And an attractive option for boat owners closer to home looking for an alternative mooring with a wide selection of marine facilities, close to a major centre and with easy access to and from Auckland."

The corporation recently completed a wide-ranging review and evaluation of its principal activities and Mr Wallace said buying the Marsden Cove Marina complex was a good fit with the company's focus.