Boatyard Auction

[Tempest]

Just seen this on Facebook for those who may have an interest

https://www.auctionhouse.co.uk/eastanglia/auction/lot/115732

 

 

[andyg]

Saw this yesterday, absolutely no idea how hard it would be to obtain planning permission, but at 16k per annum, it's hardly a going concern. 

[OldBerkshireBoy]

I would agree that the quoted numbers dont add up on paper as presented as a profitable purchase but who is to say it will reach the guide price, are the current mooring fees on the low side or accurate for the area and is the site being used to it maximum excluding the moorings here.

[andyg]

11 hours ago, OldBerkshireBoy said:

I would agree that the quoted numbers dont add up on paper as presented as a profitable purchase but who is to say it will reach the guide price, are the current mooring fees on the low side or accurate for the area and is the site being used to it maximum excluding the moorings here.

It does seem the yard was run more as a hobby then a viable business. 

[Meantime]

Assuming the yard sells for somewhere around the mid point, £300k then with the income from the moorings alone it is producing a return on investment of approx 5.3% with virtually no effort. In addition there is the prospect of building up the business by taking on marine servicing and repairs. You'd be hard pushed to find a bank willing to pay you 5.3% interest on your savings.

As an investment to supplement income, or retirement income it just about works. If you were to invest £300k in a riverside apartment in Norwich and rent it out you'd probably expect to get around £1100 per month rental.

For a younger energetic person looking to expand the business by adding to the mooring income with marine servicing and repairs, perhaps day boat rental, then it has the chance to sustain a full time employment and living.

[Andrewcook]

This place looks like an opportunity for a consortium to run it . As to making it a Day Boat centre or a few Hiring Cruisers plus A few private Boats moorings.. Whatever it becomes good luck to the New Owner of the property 

[Smoggy]

Road access isn't great for dayboat hire, griffin lane is single track with passing places and a couple of right angle bends and getting out onto yarmouth road can be a right PITA as it is.

That said there's some tree clearing going on just before the railway and with the griffin pub gone it's ripe for development and I would imagine the road access would have to be improved as part of any planning permission (at least in a rational world).

[andyg]

It's that the same lane the leads down to freedom's old yard ? Now that's a site I'd like to buy. I'd love to build a nice riverside property there. 

[Vaughan]

Dream on, by all means.

[floydraser]

I don't wish to be the fly in the ointment but none of the photos shows the proximity to the Postwick flyover. Drop down on to Griffin Lane with Google Streetview and you can see most of it. Fine I guess if you already live near a busy road but I think peace and quiet would not be high on the agenda there?

[Meantime]

2 hours ago, andyg said:

It's that the same lane the leads down to freedom's old yard ? Now that's a site I'd like to buy. I'd love to build a nice riverside property there. 

It's Bungalow Lane that leads down to Freedom's old yard and Griffin Lane that leads down to the boat yard that is for sale by auction. 

As commercial premises and boatyards getting planning for a residential development at either would be difficult, as it should be, we need working yards not posh houses.

Re the location of the yard up for sale, it is not on the river front, but tucked around the back. It's been there for far longer than The Postwick flyover and plenty of people seem happy to have moorings at that yard and the others around it. 

[andyg]

14 minutes ago, Meantime said:

It's Bungalow Lane that leads down to Freedom's old yard and Griffin Lane that leads down to the boat yard that is for sale by auction. 

As commercial premises and boatyards getting planning for a residential development at either would be difficult, as it should be, we need working yards not posh houses.

Re the location of the yard up for sale, it is not on the river front, but tucked around the back. It's been there for far longer than The Postwick flyover and plenty of people seem happy to have moorings at that yard and the others around it. 

And rightly so the Griffin Lane site should stay as it is. I don't agree about the old highcraft site, the chances of that ever becoming a working site again are slim to none. I'd personally rather see some nice properties built on the site then yet another run down vacant boatyard.. as for a 5% yield on my 300k I'd be looking for more then that. Maybe I'm just greedy ah !!!

[mikeyboy1966]

It’s probably one of those marinas where old boats go to die.

£16k pa divided by 22 moorings is only £727 per boat.

based on what I’m paying to moor a 30 ft cruiser it would be £55k

i realise my maths are at the most simplistic level but with a bit of work I think the income from mooring fees could be massively improved upon.

It would need a sizeable chunk of cash chucking at it though,

clean/modern toilets and showers,

electric to each berth etc etc

jones boat yard on the gt Ouse is also next to a very busy /noisy road ,it doesn’t seem to detract from its popularity tho.

it does however have immaculate facilities.

I guess this is the modern day problem,

land is so expensive thats its difficult for someone to raise the capital to make it viable as a small boatyard business  unless it’s passed on to the next generation.

[OldBerkshireBoy]

19 minutes ago, mikeyboy1966 said:

It’s probably one of those marinas where old boats go to die.

£16k pa divided by 22 moorings is only £727 per boat.

based on what I’m paying to moor a 30 ft cruiser it would be £55k

i realise my maths are at the most simplistic level but with a bit of work I think the income from mooring fees could be massively improved upon.

It would need a sizeable chunk of cash chucking at it though,

clean/modern toilets and showers,

electric to each berth etc etc

.

Dont forget that many places dont provide these faciliites and it is reflected in the mooring fee`s.

[Meantime]

Have you taken a look at the pictures on the auction website? I think most of the boats look ok to me, although mainly on the smaller side. There is also a market for affordable no frills moorings for the smaller boat. Not everyone wants electric and all the facilities. At the lower end of the market annual running costs can very quickly start to equal a significant proportion of the cost of the boat in the first place.

However your right that with work and more capital higher mooring income could be achieved. So now your looking at £300k for the freehold investment, then possibly another £300k to make all the improvements you mention, repair / replace quay heading, install electric and have it all certified, new toilet / shower block etc. Suddenly your £55k return doesn't seem such a good return on investment, especially if you factor in the labour you would need to put in to supervise or complete the work yourself. 

[Meantime]

1 hour ago, andyg said:

And rightly so the Griffin Lane site should stay as it is. I don't agree about the old highcraft site, the chances of that ever becoming a working site again are slim to none. I'd personally rather see some nice properties built on the site then yet another run down vacant boatyard.. as for a 5% yield on my 300k I'd be looking for more then that. Maybe I'm just greedy ah !!!

I may be wrong but I thought that High craft were near to Sheerline and again tucked away off the river. The old Freedom yard on the river used to be Kingfisher I think, before becoming Freedom. The High craft yard is even further tucked away down Griffin Lane and even closer to the flyover. I don't think you'd ever get residential planning there. 

As for the greedy bit, probably, unrealistic most probably, unless your prepared to invest heavily in addition to buying the freehold and put the hours in. 

[Vaughan]

Keep dreaming on . . . .

[floydraser]

The figures quoted on the auction webpage involve the present customers who may feel they are getting a decent deal or not. So come along with all your armfuls of cash and improve the place, how many of them will be off? Then you have to start and build your own goodwill. Probably best to get more mooring places as it is. I would think the target market would be those who wish to store the boat with fewer on site facilities and do more cruising, rather than us floating caravanners.

[Meantime]

24 minutes ago, Vaughan said:

Keep dreaming on . . . .

I don't think I'm the one dreaming!

[floydraser]

I get where Vaughan's coming from, i think; it's oh so easy to speculate on a forum but how many of us would actually have the bottle to go through with our plans even if we had the money?  Don't answer..

[andyg]

Yes of course it was kingfisher, my mistake. What the buyer dose with Griffin marina is up to them. I've not mentioned anything about re development etc. I'm surprised you seem to think 16k per annum is a decent return on such an investment, because I don't. Comparing it to purchasing a house is utter nonsense. It's only my opinion of what I'd like to see happen to the old kingfisher yard instead of a ruined old boat shed etc. Fully aware how difficult it would be to gain planning permission, well unless your a certain family nudge nudge 😉 I'm saying no more on this and wish the new owners all the best..

[Vaughan]

1 hour ago, Meantime said:

don't think I'm the one dreaming!

I didn't say you were.

But if you are even taking the trouble to discuss a little old shed with a slipway on Griffin Lane, then you are dreaming.

But why not? We all have our dreams, don't we?

[Smoggy]

Being a moorer of griffin lane I doubt any of the bigger paying boats will want a mooring down griffin lane, it's out of the way (although easily accessible) and rustic to say the least, I like my spot at sheerline as it suits me fine but I don't have regular leccy or water just river one side and land the other, that is a mooring to me.

I'm surprised no-one has mentioned the outfall just downstream of the viaduct, if the wind is in the right direction you know how well the canaries did the previous night..... But it makes a fantastic tide indicator.