Princess Fractional Ownership

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Princess Fractional Ownership
Princess P58
The smart way to own a yacht at a fraction of
the cost
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What is Fractional Ownership?

• Fractional Ownership is a structure whereby a
  group of individuals jointly acquire a high value
  asset.
• Each individual acquires part ownership, giving
  them the right of use of such asset as an owner.
• The asset is managed by a skilled management
  company on behalf of the owners, providing a
  cost effective, hasslefree, well maintained
  and fun filled investment.

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Structure of Fractional Ownership Company
Princess Two (Pty) Ltd
10 shares with maximum of 10 shareholders
Princess Two (Pty) Ltd
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Structure of Princess Yachts SA (Pty) Ltd
Manco
50 CMH Marine Leisure T/A Waterworld
50 D Abromowitz, P Bacon H Godfrey
50 D Abromowitz, P Bacon H Godfrey
Manco
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Ownership of the Yacht

• The yacht is owned by a Fractional Ownership
  Company viz Princess Two (Pty) Ltd.
• Each investor is a shareholder of Princess Two
  (Pty) Ltd.
• Each share comprises of 10 of the yacht cost.
• An individual can own more than one share.
• Manco manages all the affairs of Princess Two
  (Pty) Ltd and is also contracted to provide
  management services for the yacht.
• Each shareholder pays a monthly management fee
  for the upkeep and management of the yacht.

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Usage entitlement

• 10 of the high season months (1st of November
  to 30th of April).
• 10 low season months (May, June, September and
  October).
• Scheduling is done through a concierge desk,
  skipper or the Princess Yachts SA Fractional
  Ownership website.

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Ownership term

• Princess Two (Pty) Ltd would own the boat for a
  5-year period. However, the yacht can be
  soldprior to the end of this period by agreement
  of all shareholders. Alternatively, the period
  of ownership can be extended beyond 5 years by
  simple majority decision.
• Manco will market and sell the yacht on behalf
  of Princess Two (Pty) Ltd, at the time the
  shareholders resolve to dispose thereof.
• The net proceeds are distributed back to the
  shareholders.
• Should a shareholder wish to dispose of his share
  in Princess Two (Pty) Ltd at any stage, Manco
  will facilitate this transaction, subject to the
  rights of pre-emption set out in the
  shareholders agreement.

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Manco

• Managing the investment
• Maintenance of the yacht
• Concierge desk - Bookings, queries, trip
  planning, etc
• Providing skippers, catering and crew
• Insurance
• Mooring
• Arranging additional services, e.g. beverages,
  food, fuel (at individual shareholders expense)

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Monthly management fee covers

• All costs, excluding fuel, food beverages.
• Manco has arranged a secure and accessible
  mooring at the Cape Grace Marina in Cape Town.
  The cost is included in the levy.

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Preparation maintenance

• The yacht will be prepared for your period of use
  in accordance with your requirements.
• Your yacht will be maintained by Princess
  accredited suppliers and companies.

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Advantages of owning a share(s)

• The capital outlay is reduced to 10 of the cost
  of the yacht, although your utilisation could
  easily be the same as that of a sole owner.
• Research shows that most owners use their yachts
  for only a few weeks per year.
• The proper maintenance of a yacht requires
  technical skills.
• Reduces the risk of holding an expensive, under
  utilised asset. 
• Eliminates all the typical difficulties of
  preparing the yacht for quick and easy use.
• Flexibility safety

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Flexibility

• The yacht can be used at different locations
  around the South African coastline.
• Visit places that are inaccessible to other main
  stream tourists.
• The option to stay onboard when visiting Cape
  Town.

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Safety

• Your yacht will all at times be fully
  certified according to the South African Maritime
  Safety Authority and shall be in the hands of a
  fully qualified skipper.

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Princess 58 (indicative cost)

• Cost of Princess 58 840,000.00
• Landed cost in SA incl.
• Import duty and VAT R17 m
• One share (10) R1.7 m
• Annual Management costs R150,000.00
• Note 1. The values will fluctuate with the
  prevailing exchange rate and are indicative
  prices only.
• 2. All prices quoted in Rand, include VAT

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How to obtain a share

• A set of agreements will be presented to you for
  signature.
• The receipt of your deposit will secure your
  share.

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Agreement
SALE OF SHARES AGREEMENT
SHARE HOLDERS AGREEMENT
US AGREEMENT
RULES AGREEMENT
MANAGEMENT AGREEMENT
FRACTIONAL OWNERSHIP AGREEMENT
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The Funds

• Your deposit to secure your share is held in an
  interest-bearing trust account for your benefit.
• Guarantees for the balance will be required from
  shareholders.
• Once the agreement becomes effective, Manco will
  draw down payments from all shareholders.

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Princess 58
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For one tenth of the price, you can have the
thrill and benefit of owning your own Princess
Yacht
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For those that know the difference between an
investment and an expense 
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The home of Princess Yachts SA