Bruno FRANCOIS

Grand Bay (FRA)
Role(s):
Manager/Supervisor

Passion Oceane Ltd

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Location: Grand Bay
Industry: Sports/Recreation
Year Founded: 2007
Number Employees: 1-10 people
Business Stage: Growth (profitable)
Entity Type: Limited Liability Company
Description: MAURITIUS-BASED CRUISE CHARTER COMPANY SEEKING INVESTMENT FOR EXPANSION INTO A HIGHLY LUCRATIVE AND ALREADY SECURED NICHE MARKET Passion Océane Ltd currently owns and operates 2 day charter catamarans and 1 speedboat (total asset value of €600K), and we offer both luxury day cruises and luxury live-aboard cruises to high-end clients. Our live-aboard cruises are currently mainly conducted aboard catamarans hired from third parties. We identified a highly lucrative niche market and product in the live-aboard charter sector which we are uniquely positioned to exploit and for which our current operation serves as an ideal springboard. This niche product, « Mauritius Golf & Sail Charters », will consist of week-long cruise charters for high-end clients looking to combine sailing and golfing as part of their holiday in Mauritius. Those golf cruises will need to be run aboard luxury catamarans specifically designed for this purpose – basically 5-star floating hotels taking our high-end clients to the various golf courses that dot the coast. Our competitive advantages in luxury live-aboard cruises are unparalleled: 1. We already have a well-established client base and partnership network which is geared towards multi-day live-aboard charters, 2. We already have extensive experience in marketing and managing luxury live-aboard charter cruises, 3. Every one of our partner tour-operators has expressed a strong interest in marketing our future Golf & Sail charters, 4. We will face no competition in this sector as there are very few catamarans in Mauritius which are adequately equipped for luxury live-aboard cruises, 5. Golf & Sail charters have proven highly lucrative in several countries far less endowed with quality golf courses, and we will be the first to launch it in Mauritius which is a world-renowned golf destination with several golf courses designed by world-class champions, 6. Our team has direct access to a network of over 2,000 European and South African golf operators that are specifically looking to sell our Golf & Sail Charter Cruises Essentially, Passion Océane will be the first and only company to sell golf cruises in Mauritius – and we will be for a very long time to come as to do so requires i) catamarans that are specifically designed to accommodate a luxury type of clientele (in other words, a floating five-star hotel), ii) a team with extensive experience in marketing, organizing and managing luxury charter cruises, and iii) established relationships with golf operators – all of which we already have. An investment into our luxury live-aboard charters is expected to generate a ROI of 425% over 5 years from the operation of a single live-aboard catamaran (see attached spreadsheet), with an expected net profit of €2.9M (or $4M US). But in order to meet the demand for these charters we plan to acquire at least two additional live-aboard catamarans within the first 5 years of our expansion phase – both of which will be financed by the operation of the initial catamaran, which will translate into an even higher ROI. The above figures are based on a very conservative 35-week annual catamaran rental rate for the golf & sail cruises alone; they do not take into account that significant business will also be generated from non-golf cruises during the rest of the year (17 weeks), which would also boost the ROI. We are looking for an equity investment of €900K (or $1,25M US), which will be used to finance the acquisition of the first live-aboard catamaran (subsequent fleet expansion would self-finance) and the development phase of the Golf & Sail Charters, in exchange for 30% of our company. We will also consider a smaller investment – a minimum of €600K (or $830K US) – as we can secure the rest of the financing from another investor who has already pledged a smaller investment. At the end of year 7 the original investment of €900K (or 1,25M US) is expected to have generated a profit of 11 million euro (or $15.2M US) and the company will be the owner of three luxury yachts of a total asset value of €2M (or $2.7M US). This should be considered a relatively low-risk investment, as the tangible assets – all fully-insured yachts with a high re-sellable value – will make up 60 to 70% of the investment. As an additional guarantee we will offer the investor the full value of the assets as collateral by registering the yachts under his personal name.