KOP sails from property to yachts

Source : Business Times – 29 Sep 2009

LUXURY property firm KOP Group is expanding its presence from land to sea, having snagged exclusive distribution rights for the Princess brand of yachts in Singapore and most parts of China.

Princess Yachts Asia – a 40:60 tie-up between KOP and Reignwood Group – will start off with four Princess yachts for sale or lease. The joint venture plans to grow its fleet to around 20 yachts, and will invest up to $48 million in the next 12 months.

China-based Reignwood has various businesses across the property, recreation and beverage sectors. Princess Yachts Asia’s distribution rights will not extend to Hong Kong and Zhejiang province.

KOP is largely known for its prime residential projects – The Ritz-Carlton Residences and The Hamilton Scotts. It also owns Franklyn Hotels and Resorts, a hotel management company. The new nautical business fits well with the group’s existing portfolio given its ’strength in building the ultimate lifestyle experience,’ says CEO Ong Chih Ching.

The price of a V class Princess sports yacht can start from $850,000. In June last year, luxury goods giant LVMH acquired the boat maker Princess Yachts International for around £200 million (S$450.3 million).

KOP’s involvement with yachts does not stop with Princess Yachts Asia. It also runs Aqua Voyage, which offers yacht management services and private cruise itineraries within Asia. The outfit can draw up a route from Singapore to destinations ranging from Bintan in Indonesia to Sanya in Hainan province, China. According to Ms Ong, some travel agents have expressed interest in marketing the cruise itineraries. Princess Yachts Asia and Aqua Voyage can provide yacht owners with comprehensive services, Ms Ong adds. Owners can charter a captain and crew for cruises, and when they are not using their yachts, lease them out for some earnings.

‘With the integrated resorts, Singapore is expecting to have more high-end and more affluent customers. I think that we are in time for tapping into that marketplace,’ she says.

KOP has set aside some $350 million for international investments in the next 12-18 months.