balearic mooring leases - 2018

I have just been sent a long PDF re the lease renewal at Club De Mar.

In essence you pay a percentage of their refurb bill to extend your lease. It is about E125k for an 18m mooring. The ongoing fees then seem to be circa E10k once all things have been taken into account.

Once the refurb is done .... you wither get money back they under spend , or a bill of they overspend! Does not seem an incentive for cost control.

Link here

https://www.dropbox.com/s/gmfbaxlzwb8appm/general_extraordinary_meeting_1feb.pdf?dl=0
 
Interesting thanks Jeremy, looks like this is probably the strategy all the marinas will be using, although I doubt that Adriano needs or wants any Capex as it's relatively new anyway. The problem is current berth leaseholders are held to ransom, either pay up lump sum & accept the annual charge increases, or give up your berth, whereas port berth renters have an option to move on if ports increase rates excessively. As all on the forum have seen, rents are high enough currently, it's quite possible big rental increases & charges for port berths will drive boats out of the Balearics, at least the renters have an option!

Of course all this is being driven by local government, and they are likely to keep driving the costs up to the point at which boat owners have had enough and move on. They are using the change in the Ley de Costas as the lever to make private berth owners pay the Capex of re-developing marinas etc, tearing up legal leases authorised many years ago. I wonder what the price is now for a 15m berth compared to e350k 2 years ago?
 
pan said:
Interesting thanks Jeremy, looks like this is probably the strategy all the marinas will be using, although I doubt that Adriano needs or wants any Capex as it's relatively new anyway. The problem is current berth leaseholders are held to ransom, either pay up lump sum & accept the annual charge increases, or give up your berth, whereas port berth renters have an option to move on if ports increase rates excessively. As all on the forum have seen, rents are high enough currently, it's quite possible big rental increases & charges for port berths will drive boats out of the Balearics, at least the renters have an option!

Of course all this is being driven by local government, and they are likely to keep driving the costs up to the point at which boat owners have had enough and move on. They are using the change in the Ley de Costas as the lever to make private berth owners pay the Capex of re-developing marinas etc, tearing up legal leases authorised many years ago. I wonder what the price is now for a 15m berth compared to e350k 2 years ago?
Click to expand...

To give you an idea at club de mar a berth to rent is about E23k - so having capital tied up with E10 of fees is not really that attractive.

Further this doc is explicit that you cannot sublet other than via the marina. At present the owner can sub let but the sub lessee cant ( so i rent a berth and I am away for a month - nothing i can do. If the marina rent they give the income to the owner. He may or may not give it to you!).

As a renter this is simple as supply will increase via a single point - the marina - and the prices via the marina or direct are about the same. Often owners want full rent AND their annual fees which at present are about 5k, so if the marina has a berth - rare - they are actually cheaper!
 
The same in Portals, owners were looking for same rent as port PLUS annual fees, although quite a few struggled to get that... the annual charges are going to be the 'killer' for owners ongoing and they will find it difficult to get renters to pay such a premium.... simply a question of supply and demand (demand being determined by what alternatives in the Med are available)

How much is someone prepared to pay to berth their £500-£1m boat, depends on how deep their pockets are, but everyone has their limit ! For me I have always considered about 10% of capital value for annual running costs excluding fuel & depreciation, much higher and I would have to consider F1 motor racing, flying private jets & a string of 'call girls' better value...:):)
 
Re - moving away .

Just make sure if you jump from the frying pan - you don,t end up in the fire :)

If it’s any consolation many SoF berths leases are due to end naturally soon Beaulieu sur Mrs at the end of this year and Antibes in about 4 .
I understand the Fr gov , that owns the coast wants to make amends for years of under investment and speculation by various owners .
Our marina La Napoule has over the last few years managed successfully to extend our lease to 2029 .
Lease extensions have recently been stopped - they have changed the law last year so no more .
In fact now we have the longest in the CdA .

Reversion seems to be back to the council , and Paris has imposed two fees .
The cap ex for Antibes is eye watering €135 M over 25 years and the top up “ state land fee “ fee some €15.8 M .
Presume the state land fee will be added on to the berthhloders straight away .
The cap ex - could be a combo of even more berthholder contribution - annual or lump sum ,
Or bank assistance - for the loan to be recovered by the rents from tenants in the new facilities- shops / hotel etc .

Either way today the berthholders just pay rent if renters or nowt if owners + maintenance.
These new chargers like you guys will be on top of existing arrangements.

Other local Fr issues ( top para ) like the removal of the vat concession and hike in crew social chargers ( over 3/12 stay )
Has allready sent a large number of super yacht s your way ( Spain ) last summer .
I heard a fuel bunker Co ,s turnover fell by 1/2 last year .

So yup somewhere there will be market forces ,supply demand driving it all eventually.

So I know it’s early days but consider bagging a reasonable priced berth in La Napoule ( 2029 ) —— before the stampede :)
When the penny ( scuse the pun ) drops

https://imgur.com/a/N5uk7
 
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Interesting, as you say there is no incentive for cost control it would appear.

Seems this issue will be affecting a lot of marinas in balearics this year.

I still havent decided what to do,but i am watching all these developments with interest.

Thanks for posting that pdf,appreciate it.
 
Hi Julians,

F.Y.I. I would try option 2. Adriano have this April offered a 15% discount to one Berth owner but who can only leave their own Boat on their mooring and are not allowed to sublet. I think he must have had a good Lawyer.
 
To update this , after a few discussions with adriano I have agreed to a new lease to take me through to 2037 .
 
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