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For 55-year old Belgian entrepreneur and sailing enthusiast Matty Zadnikar, the two best moments of his life were the day he bought his yacht and the day he sold it.
This is a common sentiment among yacht owners — while nothing beats the thrill of buying a yacht, the steep costs and effort involved involved in owning one often means they can't wait to get rid of it.
But Zadnikar is convinced he holds the answer to hassle-free and financially smart boat ownership.
Having sold his oil and gas safety services business two years prior, in 2015 Zadnikar embarked on a new kind of adventure to embrace his passion for yachting.
It is well known that yachts hemorrhage money, and based on Zadnikar's own experience, the running costs, particularly through winter, for mooring, maintenance, and crew, far outweighed the joy of owning his own boat.
So when he heard about yacht co-ownership in the US, he identified a gap in the European market. He came across SeaNet, which was the third largest business offering the concept at that time.
Mike Costa, who founded the American-based SeaNet, wanted his own yacht, but realised he wouldn't be able to spend enough time on it to justify the extortionate investment. So, inspired by the likes of private jet company NetJets which was witnessing unprecedented growth, he came up with the idea of fractional yacht ownership. 12 years later, the company manages a fleet of 20 yachts.
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SeaNet's concept is simple — up to four co-owners can enjoy the benefits of owning a yacht while splitting the cost of the vessel and its management. It's what Zadnikar and his business development director Raf Breuls, a fellow Belgian, are calling "smart ownership."
"I can guarantee the average yacht user uses their boat for just a few weeks each year but must pay for year-round mooring fees, maintenance costs, insurance, crew, and winter storage," Zadnikar says.
Smart ownership, he says, provides the opportunity of owning without incurring the excessive costs associated with being the sole owner.
SeaNet offers owners shares of 25%, 33%, 50%, or 75% of four Benetti luxury yachts, ranging from 28.5 metres to 40.24 metres, in five European moorings.
Four is the absolute maximum number of co-owners for this model to work, Zadnikar says, in order for there to be adequate flexibility for use during the peak summer months of July and August.
He said that people have tried and failed to bring the co-ownership model to Europe beacuse shares were divided up among too many participants, with as many as eight co-owners per boat.
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Zadnikar prides himself on being "transparent" with his clients about the cost of running a yacht.
All joining fees and running costs are calaculated in correlation to the size of their share. The smallest share (25%) of a Benetti Delfino 95', for example, costs €2.4 million in joining fee, plus annual costs of roughly €125,000 depending on the size and location of the yacht. This price includes the build, supervision and coordination, owner supply, jet tender, luxury day boat, trailer, and all fees and VAT.
For context, according to SeaNet figures, full ownership of this model would cost around €9.7 million to purchase, excluding the extras listed above, plus estimated annual running costs of €500,000.
The larger your ownership percentage, the more weeks you are entitled to aboard, and more importantly, the more peak time you get.
So, for 25% share you get seven weeks on board (including two weeks during high season), while for 75% you get 21 weeks in total, and six weeks of prime time.
However, Zadnikar is adamant that the entrepreneurs with the spare cash to buy these stakes are unlikely to have the time to spend more than the seven-week allocation that a quarter ownership offers.
The attraction of buying a bigger chunk, he says, is the peak season preference and the privilege of picking out the interior design of the vessel.
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Dates are decided upon via an equal reservation system well in advance of the Mediterranean sailing season which kicks off in April. The first co-owner who signs up to SeaNet becomes "A" in the rotation, the second person "B," and so on during the first year. The next year, the co-owner who was "A" and had first choice becomes "D," Those who own a 50% share get priority in high season.
All co-owners get to pick their own soft furnishings for use during their time aboard. This includes bed linen, cushions, vases, art, tableware, cutlery, as well as family photos, wardrobes, toiletries, and wine and spirit collections to make it a "home from home." SeaNet rent containers at various marinas to store the items.
And just like sole ownership, co-owners can also charter their yacht for their weeks when they are not using it themselves, which SeaNet also offers to manage for them. Co-owners are responsible for the cost of fuel, food and drink, and transit port fees.
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Even in the age of the sharing economy, Zadnikar concedes it's not an easy task he has of persuading millionaires to buy "part" of a boat. He adds that the US and European sailing communities differ in certain ways.
In his opinion, yachters in the US and Caribbean are genuinely interested in sailing, while their European counterparts are more motivated by the glitz and glamour of luxury destinations such as St Tropez.
"Quite often, in Europe, those who love to spend their time on yachts enjoy going to the Côte d'Azur for a more jet-set lifestyle as opposed to going to Croatia where the sailing is superior," he says.
If the scene is more focused on the materialistic aspect of owning a yacht, the SeaNet business model could be a harder sell for Zadnikar in Europe.
But he points that co-owners don't necessarily have to disclose that they have only purchased a share of the boat, and everyone will be none the wiser. In fact, he has one client who has done just that.
He is also all too aware of the negative connotations associated with timeshares, but argues that SeaNet is different. Under the terms of the sale, the buyers become the legal owners of the yachts, which are all registered in Malta.
SeaNet's main selling point, according to both Breuls and Zadnikar, is the comprehensive concierge offering, from the recruitment of crew (who, he adds, are all on rotation which makes for a happy ship), to the logistics of your sailing route, down to the crew being briefed on your favourite tipple.
The aim is to make the trip "seamless," and for his clients "to be able to sail around the Mediterranean with the piece of mind that they have made a smart financial decision."![Brochure Benetti_22]()
Co-owners can sell their shares whenever they like, but Zadnikar says that as with most large investments, most people will have the yacht for at least three years before considering selling their stake.
When an owner wants to sell, they must enter a process of offering first right of refusal to the other shareholders, which lasts for two years. If the owners turn it down, and if after five years the owner cannot sell their share, the entire vessel goes up for sale.
For now, shareholders are limited geographically, as each boat is confined to its particular mooring, but Zadnikar envisages that as the business grows, it will eventually be possible for co-owners to swap weeks with other owners to experience different European sailing destinations.
So far, SeaNet has only sold one share on a yacht in Croatia, and says it has lined up four potential buyers who are actively seeking yachts in France, namely the Côte d'Azur.
However, according to Zadnikar, it took Costa three years before his business started taking off in the US, and he's convinced — and confident — that his business model will mean success in Europe.
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