In a deal of seismic proportions, the global investment firm has bought the largest marina and superyacht services business in the US from Sun Communities…
Blackstone Infrastructure funds have agreed to acquire Safe Harbor Marinas from Sun Communities for $5.65 billion in a deal that could have sizeable implications for the rest of the yachting industry.
“Marinas benefit from key long-term thematic tailwinds including the growth of travel and leisure as well as population inflows into coastal cities,” explains Heidi Boyd, senior MD, Blackstone.
“We believe Safe Harbor is the best-positioned company in this sector, and we look forward to working with their terrific team to invest behind their existing marinas and to expand their footprint.”
The deal values Safe Harbor at 21 times its estimated 2024 Funds From Operations (FFO), a key measure of profitability in real estate. It’s a hefty premium, signalling strong investor confidence in the marina sector and the long-term revenue potential of Safe Harbor’s extensive network.
Safe Harbour is famously the largest marina and superyacht servicing business in the US and owns and operates 138 marinas across North America and Puerto Rico. Sun Communities, a real estate investment trust, initially acquired the company in 2020 for around $2.1 billion. It has since witnessed substantial returns on its investment, culminating in this sale to Blackstone Infrastructure.
The transaction is expected to produce around $5.5 billion of pre-tax proceeds after transaction costs and to enhance Sun’s financial flexibility, allowing for debt reduction, shareholder distributions and reinvestment into its core business segments.
“We are very pleased with this transaction which further accelerates Sun’s strategy to improve the company’s leverage profile and refocus on our core segments,” says Gary Shiffman, Chairman and CEO of SunCommunities.
“I would like to thank the Safe Harbor team for their dedication and hard work throughout our four-year partnership. We are incredibly pleased with the performance of Safe Harbor and with the outcome of this highly successful sale process. We anticipate that Blackstone will further Safe Harbor’s position as the leading marina and superyacht servicing business in the US.”
Blackstone Infrastructure says the acquisition will further reinforce its diverse portfolio, with the business expanding by around 40% year-over-year and now overseeing $55 billion in assets as of 31 December 2024.
The subsidiary of the global investment firm specifically targets companies operating in industries experiencing sustained growth, driven by favourable market conditions such as rising consumer demand, technological advancements and demographic shifts.
Its portfolio includes major industry players such as QTS, the largest data centre provider in the US; AirTrunk, the top data centre platform in the Asia-Pacific region; Carrix, North America’s largest marine terminal operator; and Invenergy, the country’s leading private renewables developer, to name a few.
Wells Fargo acted as the lead financial advisor to Blackstone Infrastructure and provided committed financing for the transaction, while Gibson, Dunn & Crutcher and Simpson Thacher & Bartlett served as legal counsel.