Another Queensland marina in receivership as high dollar and GFC hangover bites

Marinas in Queensland, once the subject of frenzied buying activity, have had a rough trot.

Another marina, Horizon Shores on the Gold Coast, has fallen into the control of receivers McGrath Nichol. Its owner, Meridien Marinas, says it’s business as usual for the marina, which has approvals in place to almost double its berth numbers to 2,000. Around half the berths are occupied at the moment.

Meridien Marinas says the “combination of the ongoing GFC and strong Australian dollar has created difficult trading conditions for Australia’s boating industry.”

But Colin Bransgrove, chief executive office of industry body Marina Industries Association of Australia, says he’s not heard of other businesses in the tightly held marina sector in trouble.

“Things have been tougher post-GFC, but because of the general shortage of marina berths in Australia, most are holding up reasonably well,” Bransgrove told SmartCompany this morning.

“It’s disappointing but not the norm.”

There are 356 marinas in Australia, Bransgrove says, and most are owned by smaller companies or family companies. Leases tend to be quite regionalised, with Western Australia holding up better than Queensland, which was hit hard by the summer’s natural disasters.

Of four marinas across Queensland, just one of Meridien Marinas’ assets is not in administration: its marina in Port Douglas, which is said to be unaffected by troubles in the industry.

The Abel Point marina, which is part of the $750 million Port of Airlie project, is also in receivership, as is the Port of Airlie marina.

According to its website, Horizon Shore was “destined to become Australia’s largest world-class marina, home to over 1,400 berths ranging in size from 9m-20m.”

“Just 20 minutes from the Gold Coast and 30 minutes from Brisbane, it’s at the heart of a boating paradise, right on the doorstep of South Stradbroke Island, Jumpinpin Bar and the Gold CoastSeaway.”

Meridien Marinas managing director Russell McCart described the appointment of receiverships to Horizon Shores and Abel Point Marinas as “very unfortunate” and said the company would be “working closely with the administrators in a concerted effort to return the business back to profitability.”

“Abel Point and Horizon Shores Marinas are both excellent assets and have a great future and will continue to trade very well,” McCart says.

“The receivers have re-employed all marina staff and will continue to operate as usual, without disruption.”

“Meridien has committed over $75 million into Horizon Shores and the majority of infrastructure works are now completed.”

The collapse also follows the collapse of Queensland boat builder Riviera in 2009, on the back of debts and the GFC.