PUBLISHED 27 APRIL 2012 12:50
A new style of fractional ownership takes off online.
A Sydney based company is making waves in the group-buying industry, and the first item on the list is Riviera’s new 3600 IPS Sport Yacht, which can now be accessed for a fraction of the usual cost.
Satisfraction.com.au is developing a new format of fractional ownership. A world-first online buying platform that allows everyday consumers to bid for a share in big ticket, low use luxury item, such as yachts, real estate or fine art.
Fractional ownership allows you to experience lifestyle luxuries at a fraction of their full list price. Third party professionals manage the asset and sharing arrangements, meaning all you do is nominate your preferred time to use, show up, and enjoy.
Created by Sydney businessmen Toby Loneragan and Kieran Martin, Satisfraction.com.au is an innovation that promises to revolutionise the fractional ownership space.
Current schemes simply divide the price by the number of designated shares. This has worked well, however the Satisfraction system provides a dynamic alternative for today's marketplace. It eliminates long lead times to create a working syndicate and provides purchasers with an immediate result. Now syndicates are only formed when all shares are sold within a specified time frame. An additional benefit of the open bidding platform allows participants to secure an asset at a lower cost due to the company having all shares sold at one time.
This new system serves both buyers and sellers. If a seller’s threshold (reserve) is met, the item will sell. If not the seller has the option of extending the auction or relisting at a later date.
The founders of Satisfraction realised that, when it comes to fractional ownership, one size definitely doesn’t fit all. “We believe life’s luxuries should be enjoyed by the wider population, and with this new model we’ve taken steps to make that happen,” says Loneragan. For its first listings, they will feature two new Riviera boats from Riviera’s fractional ownership dealer Riviera Syndication. The Riviera brand is synonymous with quality and luxury, essential elements in Satisfraction’s business model. The company has been selected for its successful 13-year history in fractional ownership of luxury boats.
The first boat on offer is Riviera’s new 3600 IPS Sport Yacht to be berthed at Rushcutters Bay in Sydney. Riviera Syndications program provides each owner with a minimum of 33 days per year use of their boat accessed via a user friendly online booking calendar where weekends and special days are all shared evenly. Individual training is provided to each owner as well as full cleaning, maintenance and management. The second boat is a Riviera 43 IPS Flybridge with joystick control, which is to have a permanent berth at Hamilton Island in the Whitsundays. Owners simply reserve their four individual weeks each year and fly in to their fully prepared Riviera for a week of the most spectacular boating, snorkeling and relaxation you can imagine.
By the end of the auction, successful bidders will own a world-class yacht at a fraction of the cost.
"It’s important to emphasize that bidders are not just purchasing a share in a boat but a complete lifestyle package,” remarks John Russell, owner of Riviera Syndication.
With over 13 years of experience in boat syndication, John and his wife Sharon know a thing or two about marine sales. As pioneers in the syndication arena, they are no strangers to innovation and are clearly established as the leaders in their industry. Loneragan and Martin’s proposal to facilitate a bidding platform for shares in new boats was timely for the Russell's who had been looking for new opportunities to make luxury boat ownership more accessible.
“We felt that 2012 was all about trying some fresh new ideas to make it easier for people to enjoy the tremendous relaxation benefits that boating provides,” says Russell. “Providing new owners access to a new Riviera at a truly affordable price together with the ability to communicate with a broader audience via a platform such as Satisfraction just felt like a natural progression for the fractional ownership model." "Riviera Syndication is an exacting fit for our business because we were determined that shared assets purchased via Satisfraction also be managed well," says Loneragan.
"With John and Sharon’s track record and experience, we know that successful bidders will be looked after well beyond the completion of the transaction," he adds.
Riviera’s commitment to their clients always goes the extra mile – Satisfraction buyers can be sure that their every need will be catered for – from skippering, catering and champagne on ice to freshly laundered towels ready after their ocean dip.
At the end of the day buyers can just step off the boat and walk away – no cleaning, no refueling, no worrying.