KWM  NEWS    June 2024

Head Lease Renewal

While the Head Lease is not due for renewal until 2038, the Board has a duty to all members in ensuring long range planning for that important event. The planning involves making sure no issues exist in Marina operations that conflict with any terms in the existing Agreements which may adversely impact the chances of renewal.

As part of this planning, the Board is conducting a due diligence exercise in examining all Marina operations for compliance with existing Agreements, Policies, Procedures and Rules and put in place an action plan, to ensure compliance and address any discovered variances.

This will include things such as the Marina precinct and berth boundaries, acceptable use of berths and ensuring berths with private tenants are assessed in accordance with policy.

If any discrepancies are identified, Action Plans will be put in place to correct contraventions. Members will be notified of such plans as well as any resulting changes to overall Marina operations.

The Board understands some individual situations maybe affected, however, as members would expect, the Board needs to consider the rights of all members in exercising its duty of care.  The Head Lease renewal is the most fundamental and important element of operating the Marina into the future.

Occupancy Rate

Members who have their berth in the Rental Pool will again receive a good return this year. This in mainly due to the high occupancy rate, always in excess of 95%. The financial returns that flow from this statistic are expected to mirror the last period.

Limited berth supply with high demand drives rental prices. We continue to maintain a watch on all southern Queensland marina prices. Of course, during the winter months, the occupancy drops marginally as boats head north but this annual trend has little impact on the overall Rental Pool results.

Berth Sales

We have experienced another buoyant year for berth sales. Recent years has witnessed steady ‘liquidity’ in the turnover of berths, 14% turnover in 2022-23 and 10% turnover this year-to-date.  Early expectations for the next financial year suggest a continuation of this trend.

Manager’s Absence

James Freeman will be absent on leave for the two weeks beginning 25th June.

As usual, Fiona Young-Moir will be acting manager for that period.


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