The square [nautical] mile
Porto Montenegro is incentivising buyers of its berth leases with the option to join a revenue pool programme, comprised of 'shareholders' and the marina's rented berths. In high season programme participants can opt out of the programme, collecting a dividend in the process.…
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Porto Montenegro has launched a new client incentive programme, offering purchasers of long-term berth leases a share in the marina’s total rental income.
In a statement to the media, marina director, Tony Browne said: “We have been working on creating a marina berth rental pool to ensure maximum return potential for our investors. Following extensive research and review from our leaseholders, we are delighted to introduce this new rental pool concept, allowing our stakeholders not only to have a share of the profits, but in the long term, success of the project.”
SuperyachtNews.com contacted Browne for more details on the specifics of the programme. He explained that the revenues generated by a pool of berths – a combination of berths owned by programme participants and berths rented out by the marina – will be divided proportionally according to the number of days each berth has participated in the programme.
“The system is designed to ensure that all our berth holders benefit from high levels of occupancy, and to provide reassurance that berth allocation is done on a fair and transparent basis”, he told SuperyachtNews.com.
Browne went on to say that rental programme berths are subject to a management fee of 15 per cent, with the programme divided into high season and low season pools.
Like any shareholder, participants of the high season programme are able to opt out and cash their dividend at any time. “Berths which are made available with a longer notification period increase the opportunity to confirm reservations within a specific pool”, Browne explained. “Therefore, the notification period is used as the criteria for revenue share calculations during high season.” In low season the drop in demand means this sale option is not available.
The purchase of a berth at Porto Montenegro also comes with a ‘three-year price freeze’, which effectively allows the leaseholder to upgrade to a larger berth at not extra cost. "This is good," Oscar Siches, Marina Matters in Spain, commented when speaking to SuperyachtNews.com.
However, he added that the flexibility to sell the lease at any time, "Is with any good berth worldwide, normally an administrative charge of five to 10 per cent on the selling price is charged by the marina."
These innovations are clearly an innovative exercise in selling berth spaces, a necessary initiative, considering they number 420, many of which are designed to accommodate very large superyachts.
“At the launch of the project our berth prices were very low and as we have built and invested in world class infrastructure the prices have grown in line. However, we always strive to ensure the entry price for our investors ensures an attractive return over the long-term”, Browne said. “We only have a handful available, with waiting lists for some particular lengths.”
Siches commented that this is not a new initiative, "We at Pantalan del Mediterraneo have been doing this for years, since 2003."
In a statement to the media, marina director, Tony Browne said: “We have been working on creating a marina berth rental pool to ensure maximum return potential for our investors. Following extensive research and review from our leaseholders, we are delighted to introduce this new rental pool concept, allowing our stakeholders not only to have a share of the profits, but in the long term, success of the project.”
SuperyachtNews.com contacted Browne for more details on the specifics of the programme. He explained that the revenues generated by a pool of berths – a combination of berths owned by programme participants and berths rented out by the marina – will be divided proportionally according to the number of days each berth has participated in the programme.
“The system is designed to ensure that all our berth holders benefit from high levels of occupancy, and to provide reassurance that berth allocation is done on a fair and transparent basis”, he told SuperyachtNews.com.
Browne went on to say that rental programme berths are subject to a management fee of 15 per cent, with the programme divided into high season and low season pools.
Like any shareholder, participants of the high season programme are able to opt out and cash their dividend at any time. “Berths which are made available with a longer notification period increase the opportunity to confirm reservations within a specific pool”, Browne explained. “Therefore, the notification period is used as the criteria for revenue share calculations during high season.” In low season the drop in demand means this sale option is not available.
The purchase of a berth at Porto Montenegro also comes with a ‘three-year price freeze’, which effectively allows the leaseholder to upgrade to a larger berth at not extra cost. "This is good," Oscar Siches, Marina Matters in Spain, commented when speaking to SuperyachtNews.com.
However, he added that the flexibility to sell the lease at any time, "Is with any good berth worldwide, normally an administrative charge of five to 10 per cent on the selling price is charged by the marina."
These innovations are clearly an innovative exercise in selling berth spaces, a necessary initiative, considering they number 420, many of which are designed to accommodate very large superyachts.
“At the launch of the project our berth prices were very low and as we have built and invested in world class infrastructure the prices have grown in line. However, we always strive to ensure the entry price for our investors ensures an attractive return over the long-term”, Browne said. “We only have a handful available, with waiting lists for some particular lengths.”
Siches commented that this is not a new initiative, "We at Pantalan del Mediterraneo have been doing this for years, since 2003."
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