SUTL's One°15 banks on rising affluence and the IR effect to keep afloat
Asia's most luxurious and modern marina will officially open tomorrow and, in keeping with the sudden rush of demand for the high life, it will raise its membership prices for the eighth time.
Ready to set sail: 'This will become one of the world's most well-integrated waterfront lifestyle communities,' said Mr Tay, who has invested about $75 million into the facility which sits on a 30-year leased site.Nestled within the Sentosa Cove enclave with a range of private members club facilities, One°15 Marina has been steadily attracting the well-heeled not just from Singapore, but around the world to join up as members.
Currently, some 60 per cent of its 2,800 members are Singaporeans or residents, while the rest are expatriates and other foreigners, some coming from as far as Spain and the US.
And with demand picking up steadily since its launch in April 2005, One°15 Marina will be raising its membership price to $43,888 from tomorrow - compared to $38,888 now. This is a far cry from the initial launch price of $23,888 for an individual transferable membership.
And with membership capped at 4,000, Arthur Tay, the 50-year-old businessman and founder of One°15 Marina Club, expects to gradually hike up the joining fee to $60,888 by the time the integrated resorts are fully operational. Meanwhile, the club is also looking at term memberships to accommodate ocean-lovers who may be here only for a few years.
'This will become one of the world's most well-integrated waterfront lifestyle communities,' said Mr Tay, who has invested about $75 million into the facility which sits on a 30-year leased site.
'We already have 204 completed berths, and will have 270 berths when fully completed, including 10 berths for mega yachts of up to 220 feet in length.'
Mega yachts are fully fitted luxury super vessels of over 80 feet in length which cruise the world's oceans with their high net worth owners. There are some 7,000 of these around the world worth some US$107 billion, mostly in Europe and the United States.
Asian are said at present to own less than 100, with about 10 owned by Singaporeans and Singapore residents. But this is expected to grow rapidly in tandem with the changing wealth demographics. The club also has several boats for rent, including four houseboats which provide accommodation.
Mr Tay feels that Singaporeans should get off their bottoms and move on to see how their little island is rapidly transforming into the Monaco of the east.
Sitting in the luxurious living room of his $22 million, 116-foot mega yacht Hye Seas II (named partly after his father), Mr Tay feels that, with growing affluence, Singaporeans are increasingly demanding better cars, more expensive watches, bigger homes - and classier marinas.
Spread over some 14.2 hectares of water and 1.7 hectares of land, One°15 - built by Mr Tay's SUTL Group of companies and named after its strategic location of one degree, 15 minutes north of the Equator in nautical terms - seems to fit the bill.
Cash is not a problem. The club is already raking in some $1 million in revenue each month from its services, including not only food and beverage but other services being provided to yacht owners like bunkering. And when it reaches its targeted membership of 4,000, it would have taken in more than $140 million from entrance fees alone.
Mr Tay is unfazed by the fact that the only two other major privately-owned marinas in Singapore have not enjoyed much success. Almost two years ago, NATSTEEL-owned Raffles Marina revealed that it was not in a position to redeem $27.7 million worth of unsecured notes it owed 1,701 members. With a loss of $32 million in 2004, and liabilities exceeding assets by $30.4 million, it was forced to restructure by getting members to swap their debentures for equity and a second membership. This came on the heels of the collapse of Ponggol Marina under debt of some $18 million, leaving its members losing millions of dollars more.
So why should One°15 Marina work?
'Marinas are not new in this part of the world, but it is a shame they've gone to sleep in Singapore,' Mr Tay said. 'Today, Singapore is a medical hub, financial hub and a tourism hotspot. As its people become more affluent, their lifestyle demands and expectations will also rise,' he added.
Mr Tay also does not discount taking the holding company public one of these days. 'We need to do this only when we need capital for expansion, whether here or elsewhere.'
The company is already talking to the government about opening up marinas on some of the other islands around Singapore.
At the same time it is looking overseas, especially Vietnam. 'There are also some other marinas in the region asking us to manage their properties, or look at some other form of collaboration,' said Mr Tay.
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