Prospects look good in super-yacht berths business

A recent explosion in the number of super yachts under construction and a shortage of berths in established marinas has encouraged Grand Harbour Marina (GHM) to compete in the international market for super-yacht berths, GHM director Anthony Demajo said.

While the established super-yacht marinas are full to capacity, another 700 super yachts are being built as the number of such vessels had increased from 200 in 1984 to 2,800, he said.

Burgeoning stock markets and the trend set by billionaires, the likes of Roman Abramovich, who is having his third and largest super yacht built, have led to this extraordinary phenomenon, Mr Demajo said.

GHM is a joint enterprise between Maltese investors and the internationally-renowned yacht services company Camper & Nicholson.

Mr Demajo said the increased demand was expected to force up the price of berth leases over the next few years.

"We have been holding back on the sale of leases because of this. Our prices are still on the low side when compared to those of other super-yacht marinas in the Mediterranean.

"Leases are sold for 25 years, so if we sell the majority at present-day rates, we will be unable to sell them again until the lease is up," he explained.

Mr Demajo added that GMH was pleased with developments so far and the fact that the company has full EU-mandated security certification has helped enormously and is one of the first things clients look for.

GHM is selling 25-year leases on its 33 super-yacht berths at up to €4 million.

Super-yacht owners pay a capital sum to buy the lease, and at the beginning of each year they also pay berthing and service fees.

The marina derives other revenue from the 200 berths for smaller boats.

Super yachts are defined as yachts more than 25 metres long, but the marina has berths for yachts up to 100 metres.

Super-yacht berths are in short supply the world over, but especially in the Mediterranean.

"Environmental and security considerations rule out much of the Mediterranean coast for the development of super-yacht marinas, and in an urban environment, the only super-yacht moorings are usually in the industrial setting of commercial ports.

"It is not easy to get all the favourable factors to coincide, as they do, in the spectacular setting beneath Fort St Angelo where the local marina is located," Mr Demajo said.

Grand Harbour Marina is selling 25-year leases on its 33 super-yacht berths at up to €4 million.