Boat ownership alternatives see growth...not only for the small yachts

Check out this interesting article published on "Boating Industry" website about the fractional ownership scheme.

"It's a way to justify keeping it," Loren Simkowitz of Monocle Fractional Yachts in Fort Lauderdale, told the newspaper.

Monocle sells and manages the fractional ownership of more than 50 yachts, including brands such as Azimut, Hargrave, Hatteras and Westport, which range in length from 64 feet to more than 300 feet, according to the article.

>> Boating Industry website

Fractional superyacht ownership: the Monocle figures

Will the economic crisis change the ownership paterns?

According to Dr Simkowitz, Director of Operations at Monocle Fractional Yachts, people who "purchase $10 million yachts a few years ago are now looking for a way to get a return on their investment".

Dr Simkowitz adds that "...fractional ownership makes more sense in this economy. The costs of boats, gas and operating expenses have increased which makes sharing quite appealing. A yacht is not like a car or a computer that you use every day. Most owners only use their boats four to six weeks a year - so why not split it up and get some money back ?..."

Although the following information mostly reflects an American perspective, check out the sole ownership/fractional ownership fiigures provided by Monocle yachts.

Ownership paterns
Sole Ownership
Total purchase price: $6M
Annual Operating Expenses $400,000
Nbr of staterooms: 4
Destinations: Caribbean, New England (blog editor: for a US owner...)
Actual annual use: 4 weeks
Pride of ownership: all
Aggravation: all

Fractional Ownership
Total purchase price: $600,000
Annual Operating Expenses: $40,000
Nbr of staterooms: 4
Destinations: World
Actual annual use: 4 weeks
Pride of ownership: all
Aggravation: no

Superyacht business: a new fractional superyacht company

Rendering of the 33m catamaran

Curvelle is a new company which has just been launched and offers shared ownership of a superyacht...catamaran built in China by Cheoy Lee.

According to the company website "Curvelle luxury power catamarans are created with the twin pleasures of absolute comfort and unbeatable performance always in sight. Our yachts cruise equally well at speeds between 10 and 25 knots and, because of their highly efficient hull design, use far less engine power and fuel. And with about 50% more space to play with than a comparable monohull, a Curvelle is in a class of its own.

For one million Euros you become a Fractional owner of a brand new Curvelle 33x9 model and you can cruise for five weeks in the Med and Caribbean - every year."

Rendering of the 41 m catamaran

With their versatile layout, the six double cabins can be swiftly changed to three suites or a combination of twin cabins depending on the wishes of you and your guests.

At the same time, YachtPlus, formed in 2005 by a group of financial investors, announced that it will be launching its first 41m superyacht designed by Sir N. Foster, at the Monaco Yacht Show.

Fractional ownership is not a new idea and has proved to be a succesfull business especially with the sailboats.
Will the subprime crisis and the general slowdown of the economy boost the superyacht fractional ownership business?
Not sure...

>> http://www.curvelle.com
>> www.yachtplus.co.uk