Victorian Statutory Revaluation
Valuer-General Victoria and Municipal Group of Valuers
Guidelines on Valuation Methodology for
Marinas
Introduction
These guidelines are to be used when valuing Marinas for rating and taxation purposes.
The guidelines need to be used in conjunction with the General Provisions for Rating and
Taxation Purposes, which refers to the general requirements, legislation and procedures
relating to all statutory valuations.
A marina is a boat basin that provides dockage and services. Marinas with deep-water slips
can provide yacht moorings or access to commercial fishing boats. Those with shallow water
access may be restricted to smaller pleasure craft. Services may include restaurants, bait and
tackle shops, restrooms, boat repair and boat cleaning.
Definition
Marina
An acceptable definition for a marina is included in the Victorian Planning Scheme
Provisions1 as follows:
Land used to moor boats, or store boats above or adjacent to the water. It may
include boat recovery facilities, and facilities to repair, fuel, and maintain boats and
boat accessories.
Coastal Crown land
The Coastal Management Act 1995 defines coastal Crown land as:
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
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1
any land reserved under the Crown Land (Reserves) Act 1978 for the protection of the
coastline, and
any Crown land within 200 metres of the high water mark of the coastal waters of
Victoria, or any sea within the limits of Victoria, and
the sea-bed of the coastal waters of Victoria, and
the sea-bed of any sea within the limits of Victoria.
Victorian Planning Provisions Clause 74 land Use Terms
Guidelines on Valuation Methodology for Marinas – August 2011
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Other industry terms

Breakwater – A retaining wall erected to protect against tidal erosion of land and
prevailing weather particularly in exposed locations.

Dredging – Digging, gathering, or pulling out material to deepen waterways, create
harbours, channels, locks, docks and berths, de-silt lakes and keep river entrances and
approaches to boat ramps clear. The material removed during dredging can vary greatly
and can be any combination of rocks, clays, silts or sands.
The Environment Protection Authority (EPA) has produced ‘Best Practice Environmental
Management Guidelines for Dredging’, which is essential reading for any organisation
planning to dredge or dispose of spoil in the Victorian marine, estuarine or river
environments. The guidelines address the environmental issues and controls involved in
dredging. A copy of the guidelines can be downloaded from the EPA website at
www.epa.vic.gov.au/publications.
Dredging requires consent from the Minister or delegate under the Coastal Management
Act 1995 to use and develop coastal Crown land.

Doctrine of Accretion – Where a boundary between land and water alters so slowly that
the change is not readily noticeable, the process is known at common law as the Doctrine
of Accretion. The doctrine broadly provides that gradual accretions of the land from
water becomes the property of the abutting owner and conversely, land encroached upon
by water is lost to the abutting owner.

Moorings/Wet Berths – Boats are moored either on buoys or on fixed floating walkways
that are tied to an anchoring piling by a roller or ring mechanism (floating docks or
pontoons). Swing moorings (anchored buoys) are cheaper to rent but less convenient
than being able to walk from land to boat. Berths usually have access from a fixed
floating walkway or pier whereas swing moorings usually only have access by small boat
or dingy.

Wet Berths – Slips are the water spaces between two piers. The length of the berth as
well as the minimum draft (the depth of the water at low tide) will determine the size of
the boats that can be moored.

Slipway – A ramp on the shore by which the boats can be moved to and from the water
for repairing or launching. The capacity of the slipway or tonnage that the winch can
hold and pull is important. Recently developed marinas may use a mobile crane rather
than a slipway to move boats.

Open Dry Stack – Alternative option to storing boats at a marina on land rather than in
the water. Dry stack berthing is most suited to fibreglass or aluminium hulled vessels of
up to 10 metres in length. One of the key benefits of dry stack storage is the reduction of
hull maintenance due to storage out of the water.

Internal Dry Stack – Dry Stack storage in an enclosed building such as warehouse.

Launching Ramp – A ramp usually constructed of concrete, asphalt or stone to launch or
retrieve a boat from land to water.
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Sea Bed – Everything below the low water mark covered in water.
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High Water Mark – the mean of the highest level reached by the sea/river bed at high
tide over a four week period.
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Low Water Mark – the mean of the lowest level reached by the sea/river bed at low tide
over a four-week period.
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Sea Coast Municipal Boundary – Section 3(3A) of the Local Government Act 1989 states
that ‘If the boundary of a municipal district is described by reference to the sea
coast...that boundary is to be taken to be the line for the time being of the low water
mark on that sea coast.’.
When this section was first included in the Act in 1995 (the capital letter ‘A’ in the
section number flags it as a post-1989 amendment) this provision read ‘high water
mark.’ The amendment to ‘low water mark’ was made in 1997 – thus giving coastal
councils control over the inter-tidal zone.

Canals – Canals are artificial channels for water and usually either aqueduct canals (used
for the conveyance and delivery of water) or waterway canals (used for the passage of
goods and people). Canals are often part of an existing waterway or connected to existing
lakes, rivers or oceans.

Uplands – Dry land above the high water mark.
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Victorian Statutory Revaluation
Additional Victorian legislation and cases applicable to marinas
The following Acts are also relevant to this topic:
Valuation of Land Act 1960
 Section 13DC(9) – Land comprising one undertaking extends beyond the boundaries
of a Municipal District.
Local Government Act 1989
 Section 3(3A) – If a boundary of a municipal district is described by reference to the
sea coast (regardless of whether it is referred to as the sea shore or the waters of the
sea or a bay or in any other way), that boundary is to be taken to be the line for the
time being of the low water mark on that sea coast.
Marine Act 1988
Marine Regulations 1999
Port Services Act 1995
Coastal Management Act 1995
Crown Land (Reserves) Act 1978
Other relevant material:
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Marina Industries Association of Australia
The peak industry body in Australia for marina owners and operators of berthing,
mooring, storage and slipway/workshop facilities connected to sailing, cruising and
general boating: www.marinas.net.au.
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Marine Safety Victoria
Plays a pivotal role as the state’s marine safety agency by coordinating waterway
management, developing and implementing vessel standards and operator
competencies, protecting the marine environment and funding the improvement and
development of associated infrastructure: www.marinesafety.vic.gov.au.
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Australian Maritime Safety Authority
Responsible for efficiency in the delivery of safety and other services to the
Australian maritime industry: www.amsa.gov.au.
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National Marine Safety Committee
An intergovernmental committee that promotes uniform national standards:
www.nmsc.gov.au.
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Boating Industry Association of Victoria
Represents 90 per cent of the recreational boating industry and includes the majority
of interstate suppliers of goods and services to the marine industry:
www.biavic.com.au.
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Environmental Protection Authority
EPA Victoria is involved in programs for bays, coasts and oceans and has relevant
sections on its website: www.epa.vic.gov.au.
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Association of Bayside Municipalities
Represents the 10 councils with coastal frontage to Port Phillip Bay:
www.abmonline.asn.au.
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Victorian Statutory Revaluation
Identification of properties
To appropriately categorise marinas in a municipality, refer to the Australian Valuation
Property Classification Codes (AVPCC) available at www.dse.vic.gov.au/valuation.
Marinas and Yacht Clubs (AVPCC 687) – Generally commercial operation, considerable
infrastructure, includes both the wet and dry storage of leisure boats.
These guidelines are for marinas that form a commercial operation. There is only one
categorisation for marinas. While yacht clubs share the same classification code, the
methodology for yacht clubs (and other club-based facilities) is not included in these
guidelines.
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Victorian Statutory Revaluation
Additional to the general request for rental information, the following is a guide
to the specific information required for marinas
Marina
Land area above and below the low water mark.
Above low water mark
m2/ha
Below low water mark
m2/ha
Facilities
Facilities
Quantity/Size
Wet berths
Please specify the number of
berths and the length and
depth of each berth.
Dry berths (open)
Please specify the number of
berths and the length and
depth of each berth.
Dry berths (enclosed)
Please specify the number of
berths and the length and
depth of each berth.
Slipways
Vacancy p.a.
%
Gross Turnover
p.a.
%
p.a.
%
p.a.
%
p.a.
Launching ramps
%
p.a.
Fuel
Number of bowsers and litres
per month sold per bowser.
Shop/boat hire
%
p.a.
%
p.a.
Mechanic worksop
%
p.a.
Restaurant/Cafe/Takeaway
%
p.a.
Other
%
p.a.
1. Revenue - Gross Revenue for past three
financial years (Ex GST)
2. Expenses - Gross Operating Costs for
past three financial years (Ex GST)
3. P&L – Last 3 years Profit & Loss
Statements
4. P&E - Book Value for Plant & Equipment
Occupancy Lease Particulars
Please note that lease details must be provided for any of the facilities on site if they are
subject to a separate lease. Leases of any Crown Land or land to any other party must
also be included in the lease details under General Provisions Paper. All details of head
leases and subleases should also be included.
1. Description of lease
2. Head Lease or Sub-lease  Yes  No
If Yes
3. Lease area
 Head  Sub-lease
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Property inspection – specific requirements applicable to marinas
1. Investigate documents to be sighted:
 Certificate of Title including plan of area
 lease
 lease area plan
 Site plan
 occupancy above and below the low water mark
 plan to establish area that is exclusively occupied and area that does not have
exclusive occupation.
2. Inspect property and determine components of the property such as:
 number of wet berths and length and depth of berths for each vessel
 services available to each berth i.e. water, power, sullage
 water depth of marina
 number and type of slipways i.e. fixed or mechanical and capacity of slipway
 moorings – types
 dry stacking – types i.e. offshore or enclosed and stack capacity
 facilities available i.e.
 mechanic workshops for maintenance and repair of boats
 fuelling options
 ships chandlery
 restaurant/takeaway/cafe
 boat hire
 other
 car parking
 plant and equipment (fixed and non fixed).
3. Clarify any data if required with manager and/or owner, such as:
 security provided
 services available on site, for example provision of living on a boat in a marina will be
a condition of the lease.
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Methodology

Site value
In determining the site value, the valuer needs to ascertain the area above and below the
low water mark and the zoning of each respective area.
Upland (land above low water mark) –
For the land above the low water mark, the land value of similar zoned land should be
applied. If there are no sales and thus no supporting sales evidence, then the valuer
should look at the zoning of the land surrounding the subject property (preferably with
water frontage) and apply levels of value of surrounding zoned land with an appropriate
allowance for rezoning.
Seabed (land below low water mark) –
For seabed or riverbed which has a permitted use for a commercial marina, a Crown
lease will apply as the seabed/riverbed under the low water mark is usually in the
ownership of the Crown, thus a lease to occupy the sea or river bed will be required. The
ground rent needs to be reviewed to ensure the passing rent is at market levels at the
relevant date and then capitalise the market ground rent to determine a land value. As a
guide the site value of seabed/river bed below the low water mark is generally in the
range of 20 to 33 per cent of the unencumbered land value of land above the low water
mark.
Site improvements –
The existing high level water mark may be as a result of filling (break water and
associated filling). Refer to General Provisions for Specialist Guidelines
Single title wet berths –
The site value for single title berths should be calculated on the basis of the sale price of
the individual berth less the development or construction costs. As the full value of the
berths relies on the construction of jetties etc and development of a large section of sea
or river bed then they should be treated for site value purposes the same as a
development site. The valuation should be on a per berth undeveloped basis.
The information in the following examples are not indicative of any market
information, the income, rents and rates are for example purposes only.
Calculation example:
50 berth site sale price $150,000 per berth
Construction, selling and development costs including P&R $4,500,000 or $90,000 per
berth.
Therefore Site Value 50 berth @ $60,000 per berth $3,000,000 or $60,000 per berth.
In the context of marinas, berths that have separate titles are considered to have
exclusive occupation of the site being the berth itself and thus should be treated as a
separate occupancy from the marina. If the berth has a separate title in conjunction with
a parcel of land, then the berth and parcel would form part of the same property. The
berth and the land parcel should be valued together. For berths that don’t have a
separate title, they form part of the marina and should be valued as part of the marina.
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If the other facilities at the marina are subject to a separate lease and occupancy such as
restaurants or mechanic shops they also should be treated as a separate occupancy. If
these facilities e.g. restaurants, shops etc. are operated as one occupation as part of the
overall marina operation then they should be treated as one occupancy.
Municipal boundaries
Section 13DC(9) of the Valuation of Land Act 1960 states that ‘If land comprising one
undertaking extends contiguously beyond the boundaries of any municipal district the
value, for the purposes any rate, of so much of the land as is within any one municipal
district, must be assessed as part of the value of the whole of the land.’.
If the site area of the marina extends beyond the municipality’s boundary the marina
should be valued as a whole and then apportioned.

Capital Improved Value
Factors that affect rents and value:
 Wet berths – the number, length and depth and vacancy rates.
 Slipways – annual rental income.
 Launching ramps – annual rental income.
 Rental rates – influenced by the location of the waterways and the services. Visibility
and utilities may affect vacancy rates, particularly in cases in which waterfront land
is limited and land costs are high, rack storage may be a storage alternative.
Regardless of the physical setup, competent management is crucial because
operations are so labour-intensive.
 Marina value is often dependent upon the amount of upland and water covered area
(called the basin).
 The number of legally allowable wet berths will be dependent upon the basin size.
 The amount and quality of water frontage and water depth.
 Protection from wakes and waves.
 Breakwaters, piers, berths, docks, retaining walls, convenience to waterways, visibility
from commercial roadways, upland, and the proximity to large fishing areas also play
a role in the value.
The primary approach used is direct comparison of marinas with similar berthing
capacity and facilities. However, as sales of marinas are infrequent, the capitalisation of
market rent is also relied upon.
While a market valuation would involve the capitalisation of net income, this approach
relies on accurate information provided for both income and expenses. As reliable
information is often difficult to obtain for a statutory valuation, the capitalisation of net
rent based on gross income (where applicable) is adopted.
The capitalisation approach is based on either market rents derived from the gross
income (turnover) or market rents of the various components (facilities) provided at the
marina.
While evidence of market rents may again be scarce, market evidence on a component
basis such as restaurants, cafes, workshops etc. in the surrounding area is usually
available.
The information in the following examples are not indicative of any market
information, the income, rents and rates are for example purposes only.
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Victorian Statutory Revaluation
An example of the breakup of components to apply a market rent is as follows:
Component
Quantity
Trade per
annum
(Gross Income)
$ 15,000
Rent ratio
Net rent P.A
Swing moorings
incl. slipways and
launch
80 moorings
1 slip, 2 launch
15.0%
$ 2,250
Dry stack (open)
188
$ 601,600
15.0%
$ 90,240
Dry stack
(enclose)
100
$ 480,000
15.0%
$ 72,000
Wet berths
36
$ 288,000
15.0%
$ 43,200
Fuel & sundry
10,000 litres p.a.
$ 250,000
2.0%
$ 5,000
Marina rent
$ 212,690
Restaurant/cafe
50 seats
$ 50,000
Mechanics
workshops
2
200m
$ 50,000
Office building
150m2
$ 30,000
Total net rent
$ 342,690
Plus council rates
$ 15,885
EAV
$ 358,575
Capitalisation rate
12%
CIV
$ 2,855,750
CIV (Rounded)
$ 2,850,000
Rate per berth
324
$ 8,796
Percentage of turnover (rent ratio) to apply for net rent needs to be based on success of
operation, longevity of business, average management etc. The rental ratio will vary
depending on whether the marina has a few components (i.e. dry stack open, dry stack
enclosed etc.) or many of the components. For example if two marinas have the same
number of wet berths but one marina also has dry stack enclosed storage, then the rental
ratio to the wet berths for each property may vary.
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Sales Analysis

As sales for marinas are not plentiful, sales interstate should also be considered.

For any sales that have occurred, it is essential that the valuer discuss the sale with
the relevant agent.

The valuer needs to establish if there is a leasehold component of the sale and if so
the details of the lease and area pertaining to the lease.
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Industry Information
Marinas Directory Victoria
Marina
Location
Website
Anchorage Marina Pty Ltd
Williamstown
www.anchoragewilliamstown.com.au
Blairgowrie Yacht Squadron
Blairgowrie
www.bys.asn.au
d'Albora Marinas PIER 35
Port Melbourne
www.dalboramarinas.com.au
d'Albora Marinas Victoria
Harbour
Docklands, Victoria
Harbour
www.dalboramarinas.com.au
Marina YE (Yarra’s Edge)
Docklands, Victoria
Harbour
www.marinaye.com.au
Martha Cove Harbour
Safety Beach
www.marthacove.com.au
Melbourne Docklands Marine
Docklands, Victoria
Harbour
www.melbourne.vic.gov.au
Metung/Chinaman's Creek
Marina
East Gippsland
www.egipps.vic.gov.au
New Quay Marina
Docklands
www.newquay.com.au
Patterson Lakes Marina
Patterson Lakes
www.pattersonlakesmarina.com.au
Queenscliff Harbour
Queenscliff
www.queenscliffharbour.com.au
Royal Victorian Motor Yacht
Club
Williamstown
www.rvmyc.com.au
Sandringham Yacht Club Inc
Sandringham
www.syc.com.au
Savages Wharf
Williamstown
www.savageswharf.com.au
Slip Bight Marina, Paynesville
Paynesville, East
Gippsland
www.egipps.vic.gov.au
St Kilda Marina
Elwood
www.stkildamarina.net.au
Western Port Marina
Hastings
www.westernportmarina.com.au
Wyndham Harbour (Prudential
Investments)
Werribee
www.wyndhamharbour.com.au
Yaringa Boat Harbour
Somerville
www.yaringa.com.au
For current information on statutory frameworks and organisational structures regarding
Port Phillip Bay and marinas, visit websites such as:
www.abmonline.asn.au
www.dse.vic.gov.au > coasts and marine
www.transport.vic.gov.au > roads, ports and freight > ports
www.epa.vic.gov.au > water
www.parkweb.vic.gov.au > marine and coasts
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