The concept of fractional ownership is not new, but what is new is the fact that a megayacht builder is now offering such a program. Sanlorenzo has kicked off Sanlorenzo Shares, featuring one model so far and more reportedly to come.
Sanlorenzo–which also added longtime yachting executive Fulvio Dodich (formerly of various Ferretti Group yacht brands) to its team as CEO this week–believes the timing is right for a fractional yacht ownership plan. Sanlorenzo Shares is targeting both non-owners as well as experienced boaters who either are not ready to own a large yacht or feel they can’t justify the expense. As to the latter, Philip Burroughs, head of sales and marketing for Sanlorenzo Shares, puts it this way: “The last thing they want to feel is whenever they have free time, they have to use the boat.”
Burroughs knows that feeling all too well, having once been in their shoes. In 2000, he co-founded YachtSmart North America, which included both large yachts and megayachts offered on a fractional basis, after being frustrated that there were no fractional-oriented programs in yachting. Prior to that, Burroughs worked for more than a decade as a financial advisor for a few major firms.
Sanlorenzo Shares will offer only Sanlorenzo yachts, as you might expect. The first yacht in the program is a new SD92, a four-stateroom yacht that tops out at 17 knots. A total of five shareholders will get access to the megayacht, at $1.6 million apiece plus about $121,000 annually for maintenance, crew salaries, insurance, dockage, and related costs. Each share allows for six weeks of cruising, with summers in the Mid-Atlantic and/or New England and winters in the Caribbean and the Bahamas. Burroughs says that his experience shows that a maximum of five owners with six weeks given to each permits much-needed wontime for crew, moving the yacht from one location to another, and seasonal maintenance. “We’re trying to change the perception,” he says, in reference to the same-day turnarounds that some other programs have.
Should someone be unable to use his or her allotted time, family or friends are permitted to take it, Burroughs says. (One thing that isn’t permissible, however, is chartering the available weeks.) He adds that in total, Sanlorenzo Shares requires a five-year commitment, though shareholders are permitted to sell their stake at any point during that time. If they do wish to sell, Sanlorenzo can assist, he explains.
When asked what other yacht models would join Sanlorenzo Shares, Burroughs said the decision has not yet been made. They will, however, be just megayachts, and they will also be new builds, he adds, so it depends on the availability of build slots. Regardless, the fractional plan they’ll be offered under should be largely the same.