The Majestic Fractional Ownership Plan provides for a group of shareholders to purchase shares in a company that owns a leisure Yacht. Occupation of the yacht is shared, equitably using a roster system with changes being affected by contacting the concierge service provided by the management company. A contribution is made by each shareholder towards the operation and maintenance of the yacht.
The Majestic 530 is a beautiful sailing catamaran that can accommodate 12 people in 6 spacious, en suite cabins. It is a safe, stable and luxurious cruising catamaran that is ideally suited to the different uses that a variety of owners would need in a yacht. The superior volume enables it to carry the required fuel, water and power to enable owners to enjoy the benefits of luxury home comforts plus the many exciting leisure and recreational activities. Visit our website or view our Majestic 530 brochure for more information and specifications.
The benefits to these joint owners are:
- You only pay for your holiday and not for the remainder of the year.
- Maintenance costs are shared between
- Holiday accommodation and sailing opportunities will be possible at exclusive destinations.
- Unlike timeshare, or charter, any increase in the value of the yacht accrues to you, the owner.
- Security risks are reduced because of
higher year-round occupancy.
- Un-utilised weeks may be chartered out
- Don’t pay for expensive property
when you are spending your
time on the water
Spread your options and investments
Many investors only utilise 4-6 weeks per year of their leisure investments, yet they still incur the hassle and full maintenance costs of the asset. In addition premium leisure investors often prefer a range of experiences but the general increased cost of outright ownership in exclusive destinations, has created growing demand for fractional ownership.
Structure and Operation
The Majestic Fractional Ownership Plan, which enables a group of investors (typically 10) to establish a company that will enter into an agreement to build a 6 en suite cabin Majestic yacht, is uncomplicated and transparent. The structure will operate for as long as the shareholders wish to collectively retain the yacht. A shareholder may hold more than one share.
The shareholder’s agreement governs the operational matters. This can only be amended by the shareholders themselves in the manner prescribed.
The rules are incorporated in this agreement and this enables owners to enjoy the benefits in the knowledge that their interest is protected.
Majestic Fractional Ownership will manage the yacht and company for the first year, and thereafter the shareholders may decide whether they wish to change this arrangement. The shareholders are therefore assured that the systems are properly installed to allow for trouble free holidays, as the owners get to know one another and their requirements.
Services available to members include:
- concierge services
- moorings liaison
- valet and maintenance supervision
- insurance negotiations
- provisioning at the request of shareholders
- broking the boat if the shareholders wish
- to sell individual or collective shareholdings
- monitor safety regulations
- the appointment of skippers and or crew
- secretarial & administrative services
We recommend that a skipper should be employed - at least for the first year as owners get to know the yacht and the systems and to ensure that the servicing, cleaning and maintenance is done so that when you arrive you are able to take off and enjoy your usage while ensuring that your yacht is protected and correctly operated. The cost of a skipper varies from location to location.
Shared Cost - Levies
The monthly levy varies from one leisure location to the next according to the local cost structures. The following detail is a general guideline to the cost of the monthly levy and the services covered by the levy. The shareholders will vote on the levy annually after the auditors and management have presented their reports and recommendations.
This shared amount includes:
- Mooring fees
- Boat and Equipment
- General maintenance
- Bank Charges
- Annual Tax Returns
- Accounting and secretarial services
- Cleaning Consumables
- Management Services
The purchase price of a 10% share is one tenth of the price of the yacht with any additional extras or recreational equipment. plus the costs of delivery and structure establishment including vat. Should you bring other shareholders into the plan then you will receive a reduction in the price of your share per additional shareholder, secured and fully paid up. The timing of the payment of the purchase price depends on whether one is buying into a company building a new yacht or whether one is buying a share in a company that is already operational.
When purchasing a share in an existing structure, a 20% deposit is payable upon the signing of the “Offer to Purchase” The balance of the purchase price is payable before transfer of the share in the company. Normally, this balance is payable 6-12 weeks after the payment of the deposit. When acquiring a share in a company that has yet to build the yacht, a 20% deposit is payable upon the signing of the “Offer to Purchase” the shares in the fractional ownership company. Thereafter, progress payments will be called for as the yacht is constructed
Banking and independent protection
Each fractional ownership company has its own bank account. Your purchase price (as well as your monthly levies) is deposited into this account. This account is managed by an independent accountant. Each fractional-ownership company’s bank account is administered in terms of Standard Bank’s Third Party Fund Administration (TPFA) Scheme by the accountant of the fractional ownership company and is subject to independent audit.
As the purchase of this share is an investment, any increase in the value of this investment will constitute
a taxable capital gain. Upon sale, which could be decided by a simple majority, the net proceeds will be repaid to the shareholders.