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Berths As A Shore Investment

13.11.19

Traditionally, the South of France might be considered a location where owners are guaranteed to generate high berth profits with marina spaces frequently sold at prices above that of the initial investment. An example, according to James Munn, sales and charter broker with Northrop & Johnson, is a 30-metre berth in the South of France that cost £225,000 in the 1970s and was later sold for £12 million in the 1990s when demand outstripped supply.

However, this demand seen in traditional areas is decreasing, making way for the rise in popularity of other European destinations such as Spain. Recent reports by the Superyacht Intelligence Agency predict that the current fleet of 60m+ yachts will exceed 500 units within the next seven years with Spain alone, set to be home to the highest number of berths (90 meters plus) which can cater to this fleet. With larger berths of this size unavailable across traditional superyachting marinas and an unprecedented number of 60m+ superyachts currently in construction, it is not long until the number of large superyachts exceeds the number of Mediterranean berths that can accommodate them, making marinas like OneOcean Port Vell an attractive investment opportunity for new Owners.

Last year saw a 2.5% expansion in the Spanish economy - the fifth consecutive year of robust economic growth - firmly establishing the economy as the fastest growing in the eurozone. Barcelona, in particular, is a city now recognised as a forerunner in the global luxury market with its economic growth forecast to mirror that of the whole of Spain in 2019 according to Oxford Economics.

Squircle Capital recently developed the first super-prime residences in Barcelona, Francesca Macià 10  and that pre-empted the ever-increasing appeal of Barcelona to UHNWIs looking for real estate investment in vibrant city centre locations with five-star amenities. A succession of luxury brands have since invested in the city, most recently Mandarin Oriental, as the company announced that they will manage 34 luxury residences, the city's first stand-alone five-star branded residences, in Barcelona.

With the ever-increasing appeal of Barcelona to UHNWIs, there has also been a major shift in the translational cruising pattern of superyachts...the UHNWIs favourite toy. A recent study published by Bloomberg revealed that Spain has the largest superyacht fleet in Europe totalling 133 - which is where OneOcean Port Vell comes into play. This sharp rise in popularity follows the ability of superyachting marinas in Spain now being able to accommodate for the global demand of larger superyachting berths. One Marina that is proactive in satisfying this demand is OneOcean Port Vell. Originally built ahead of the 1992 Olympic Games, the marina underwent a dramatic transformation in recent years and is today home to 150 luxury berths catering for yachts up to 190 meters.

Ignacio Erroz, General Manager of OneOcean Port Vell, reports:

"With a large number of superyachts currently under construction in shipyards around the world, it will not be long until the number superyachts exceed the number of berths in premium locations, especially for +80m yachts, inevitably generating a supply and demand imbalance. In turn, at marinas such as OneOcean Port Vell, which is home to some of the Mediterranean's largest berthing spots, we expect to see the value of these berths grow. This, coupled with the possibility of obtaining a return on investment through the system in place at OneOcean Port Vell, which shares the rental revenues of the leased berths with its owners, makes the marina an attractive investment opportunity for UHNWIs.

"Over the past few years OneOcean port Vell has played host to two of the most prevalent events in the superyacht industry - The MYBA Charter Show and The Superyacht Show - establishing Barcelona's position as one of Europe's primary yachting destinations and significantly increasing the numbers of superyachts berthing at the marina. With the marina's visibility increasing on a global scale, we have witnessed a rise in rental demand over recent years."

www.oneoceanportvell.com

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