Grand Harbour Marina competes in superyacht market

Grand Harbour Marina, a joint enterprise between Maltese investors and the internationally reputed yacht services company Camper & Nicholson, is competing in the international market for superyacht berths.

"Superyachts don't have to be tied to a particular part of the world when it comes to home-berthing, like the Caribbean or the Mediterranean," Anthony Demajo, a director of Grand Harbour Marina said last week.

"They operate on charter the world over, and so home berths are chosen on other criteria, like security, efficiency and convenience."

Last year, the marina netted one of the most high profile super-yachts in existence, the Maltese Falcon, owned by American venture capitalist Tom Perkins. As it lay moored beneath Fort St Angelo, it drew crowds of sightseers and photographers.

Grand Harbour Marina is selling 25-year leases on its 33 superyacht berths at up to €4 million, with the price worked out on the basis of how many square metres of water surface area are taken up by the yacht.

Owners of superyachts 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, from the provision of ancillary services, and from yachts that are visiting the harbour briefly and need to rent temporary berths.

Superyachts are defined as yachts more than 25 m long, but the marina has berths for yachts up to 100 m. Superyacht berths are in short supply the world over, but especially in the Mediterranean.

One of the reasons is that there are specific geographical requirements for these berths, including water of a certain depth, because some of these yachts are the size of small ships, and a favourable coastline.

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

"It's not easy to get all the favourable factors to coincide, as they do in the spectacular setting beneath Fort St Angelo."

Yet the main reason there is a shortage of berths is the recent explosion in the number of superyachts being built. Burgeoning stock markets and the trend set by billionaires like Roman Abramovich, who is having his third and largest superyacht built, have led to this extraordinary phenomenon.

In 1984, there were just 200 superyachts in the world. Now there are 2,800, and another 700 being built. Meanwhile, the established superyacht marinas are full to capacity.

Increased demand over the next few years is expected to force up the price of leases on berths. "We have been holding back on the sale of leases because of this," Mr Demajo said.

"Our prices are still on the low side when compared to those of other superyacht marinas in the Mediterranean. The 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.

"We are very pleased with developments so far, and the fact that we have full EU-mandated security certification has helped enormously. It's one of the first things that our clients look for."