Blackstone agreed to acquire Safe Harbor Marinas in a $5.65 billion all-cash deal as the asset manager banks on a recession-resistant industry.
Safe Harbor Marinas, which was acquired by the real estate investment trust Sun Communities for $2 billion in 2020, manages 138 marinas across the U.S. and Puerto Rico and provides maintenance services for superyachts.
The transaction, announced Monday, will be executed through funds managed by Blackstone’s infrastructure business and values Safe Harbor at 21 times its estimated 2024 funds from operations.
“Luxury tourism is an area less affected by economic trade winds and up-and-down cycles. It is likely to continue to do well despite current geopolitical uncertainties and worries about the direction of the US economy,” said Jim Corridore, PitchBook’s senior industrials analyst.
He added that the industry is poised for stable and growing demand, as boat owners require storage regardless of fluctuations in new boat sales.
“It also makes sense that as the wealthier part of the population continues to see their wealth expand, this supports the demand for use of larger yachts than before.”
According to a Wall Street Journal report, the top 10% of earners in America have been spending more, fueled by recent gains in stocks, real estate and other investments.
Blackstone’s infrastructure platform is no stranger to marine investments. In 2019, the firm made a growth investment in Carrix, a marine terminal operator with over 250 facilities worldwide.
Blackstone enlisted Wells Fargo as lead financial adviser on the deal, while Gibson, Dunn & Crutcher and Simpson Thacher & Bartlett acted as legal advisers. Lazard, Latham & Watkins and Taft Stettinius & Hollister advised Sun Communities on the transaction.
Featured image by Thomas Barwick/Getty Images
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