1/2 Yas Marina , Abu Dhabi
This is a marked change from the situation 18 months ago which Horrigan describes as a “state of flux” for the
industry. Moving into 2010 he reports that there has been “a noticeable change and stabilisation”. Paul Lane, project director for Aldar Marinas, whose Yas Marina project debuted at the inaugural Abu
Dhabi Grand Prix last November, agrees. “Location is the driver and this is very much a lifestyle product, with a ‘see and be seen’ factor. We talk about the historic localities such as Monaco and Cannes, and then new destinations like Abu Dhabi,” he says. “The bigger the yacht the more important the lifestyle component, and if you look at the UAE with its
mix of culture and leisure opportunities as well as great air connections, then it is extremely attractive. As well as the fact that we have one of the longest boating seasons in the world at nine months,” he adds.
1
UPPING INVESTMENT
That’s not to say that there hasn’t been a shift in emphasis and a re-assessment of projects and commercial potential. Horrigan says: “Projections aren’t anything like they were three to four years ago and it’s no use pretending otherwise. “People are struggling to get finance for the number of berths and facilities they were planning to do
before; the population demographics have reduced; so when you talk about meeting commercial targets these are obviously re-forecasted figures.” Aldar Marinas next project, Al Bandar Marina, part of the Al Raha development, remains on track for a mid-2010 handover, but Lane says that master plans are fluid for other pipeline marinas. “We still have many sites for marinas to be developed, and we will look at the best marinas to fit in with the property developments and the market at that time.” Horrigan believes that one of the positives to emerge from the economic downturn is a saner approach
to marina development, as he explains: “Everyone was recreating the model they saw everywhere else because of the outrageous success of apartment sales, high hotel occupancies, and the move towards integrated marina lifestyle developments. Everyone wanted one. “Developments weren’t necessarily robust or carefully scrutinised. That meant that there were as many
While the lights remain switched off in shiny new apartment blocks, opulent villas and expanses of office space across the region, the marina industry is fighting not to stay afloat, but to deliver enough new berths in order to meet demand. As the global yachting industry continues to satisfy the leisure requirements of its high net worth clients with the production of super, mega and now giga yachts, the home ports of the Middle East are swiftly becoming a preferred destination for both local owners and those looking for new destinations. Michael Horrigan, CEO Middle East, Europe & Asia for Dubai-based
Mourjan Marinas IGY, operator of the emirate’s Festival Marina and developer of a number of regional projects including two marinas in Bahrain’s Marsa Al Seef development, says: “When you consider the percentage of megas and gigas owned by the Middle East fraternity, it makes this a year-round destination. “It’s interesting that the returns on marinas are still as dynamic
and strong as ever. This is because there are fewer developments coming online. Previously we were looking at four or five competitor developments and the potential to be involved in 14 facilities in Dubai alone; whereas now we have one to two major facilities coming online or in the design/construction phase in each of the major Gulf markets.”
poorly conceived developments as there were well conceived ones. What’s happening now is history, and the economic situation has washed out the ability to be overly courageous. Nowadays investors are looking at the fundamentals of development far more diligently. We always err on the conservative side when we do these studies. We’re as busy now, but in a different way from early 2008.” For Mourjan Marinas IGY there has been a shift in the investment model, as Horrigan elaborates:
“We’re 50 percent investors and then operators. For a long time the Middle East didn’t need any investment but that has changed a lot.” And the investment impact in developing a marina that has the capacity to take large vessels is obviously substantial, although both Aldar and Mourjan declined to talk actual numbers. “A marina is a bigger investment than people think, it’s the entire upland facilities as well as the ‘floating bits’,” says Horrigan. “There is nothing typical about a mega yacht marina. The dedicated facilities might only have six to 10 hum-
u ngous vessels, so perhaps the easiest comparison would be against a ‘regular’ 100-berth marina,” he adds. But the resulting increase in revenues from a mega yacht marina operation is not a given, as he explains: “The
revenue streams aren’t the same; in many cases they are gifted or government subsidised for royal families, and so the cost of these facilities and their viability bear no resemblance to commercial marinas.”
➔
The home ports of the Middle East are swiftly becoming a preferred destination for both local owners and those looking for new destinations
2
jun-sep 2010
/
/ 13
Page 1 |
Page 2 |
Page 3 |
Page 4 |
Page 5 |
Page 6 |
Page 7 |
Page 8 |
Page 9 |
Page 10 |
Page 11 |
Page 12 |
Page 13 |
Page 14 |
Page 15 |
Page 16 |
Page 17 |
Page 18 |
Page 19 |
Page 20 |
Page 21 |
Page 22 |
Page 23 |
Page 24 |
Page 25 |
Page 26 |
Page 27 |
Page 28 |
Page 29 |
Page 30 |
Page 31 |
Page 32 |
Page 33 |
Page 34 |
Page 35 |
Page 36 |
Page 37 |
Page 38 |
Page 39 |
Page 40 |
Page 41 |
Page 42 |
Page 43 |
Page 44 |
Page 45 |
Page 46 |
Page 47 |
Page 48 |
Page 49 |
Page 50 |
Page 51 |
Page 52