Fractional Boat Ownership by The Cruising Club
A fully equipped luxury sports cruiser or yacht from 45 to 100 feet in length will cost an individual purchaser in the vicinity of $500,000 to $5,000,000. The ongoing cost of maintaining such a vessel, including marina rental, insurance, antifouling, mechanical service, crew, cleaning and fuel costs can also amount to a substantial five to seven figure sum each year. As a result, only a very wealthy percentage of the population can justify this level of expenditure for such a non essential item. Despite this, most marinas are full of very expensive vessels that are only seldom used by their owners.
The concept of 'timesharing' or 'fractional ownership' - being the division of a vacation apartment or luxury asset into multiple ownership titles, has become well established internationally since introduction in the 1970's. Today hundreds of thousands of families and businesses enjoy affordable, luxurious vacations or corporate benefits in desirable leisure assets at some of the world's most exotic locations, through fractional programs developed by companies such as Marriot, Conrad, Radisson, Accor and Disney Corporation.
In more recent times the concept of fractional ownership has also been applied to luxury homes, aeroplanes, helicopters, cars and yachts. With the introduction of The Cruising Club in Australia in 1998, the packaged ownership of a luxury cruiser or corporate motor yacht became available to families, boating enthusiasts and corporations from all social and financial levels.
How Fractional Boat Ownership Works
Each Cruising Club membership vessel is owned by a corporate structure, in which purchase of an equity membership share entitles corresponding use of the corporate asset. Each boat ownership entity is collectively owned by between five and ten shareholding units, comprising either of Gold or Platinum members, holding either 10% or 20% equity in the corporate structure and asset.
Membership shares last for the practical life of the vessel (usually projected at between five and ten years), at which time the vessel is sold and a percentage of the net resale value is repaid to each member according to equity held.
Each member submits a list of preferred daily booking dates up to four months prior to each trimester boating season, which are allocated by preference and availability and confirmed in writing by the management company.
Each selected vessel is fully maintained all year round by The Cruising Club Management Company, ready for member's use every day. Regular mechanical upkeep, antifouling, insurance, marina slip rental, valet and cleaning, refurbishment, concierge service and management are carried out by the management company's representatives. A comprehensive driver training course is included with each membership application where applicable.
The total cost of maintenance and management is divided among the equity members and is payable in advance on a pre-determined basis. Members must also pay for their own fuel, crew and provisions as required each day.