Tax-conscious sailors could own their own berth along-side ex-US vice-president Al Gore and the Kennedys in a swanky new yacht club on Cape Cod - a pension investment option that comes with a unique tax-free status.
Irish-owned property investment company Ailesbury Investments say the tax advice they've received from the US suggests that an Irish self-administered pension scheme investing in Bass River Marina will not be subject to either income tax on any rental income received, or capital gains tax on any gain on a sale.
Ailesbury is fronted by Cork-born Frank Long and Liam Hurley, and Dennis English from Caherciveen, Co. Kerry. They believe their investment to be the first ever tax-free Us pension investment for the Irish market.
Co-director Frank Long says "We are also very confident in the growth prospects for this investment. Marinas in Cape Cod and Boston regions of Massachusetts are in great demand and berths/dry racking are at premium in the area. There will always be demands for these slots and the investor is secure in knowing they have a solid, secure and sought-after investment.
"Berths and dry racking will be rented to this market, allowing strong rental growth figures to be generated. All the rent is paid yearly in advance. Berths and dry racking are also subject to a very strong resale market, which also bodes well for our investors, who are free to sell their investment at any tie at fair market value.
"Even at very conservative rental and capital gain growth levels, the returns for this investment still offer a significant upside - particularly for those pension investors looking to diversify their portfolios ," he adds.
The fully serviced marina, where the new club will be located, is set over 6.3 acres of prime real estate in West Dennis, on the southern shores of the Cape. However there is a downside. You may never actually get to tip your cap to the famous locals who include the Kennedys and Mr Gore. According to Paul Murray, director, Bespoke Pension Trustees Limited and advisors to Ailesbury: "To qualify for this very favourable tax treatment, self-administered pension scheme investors must never use the membership for their own use and keep the investment at 'arm's length'."
Investors can access the investment personally, via self-administered pension schemes or though Approved Retirement Fund (ARF) providers,. The minimum investment is €50,000.
Ailesbury is currently managing investments in developments in Florida, New York and Boston. Since 2004, the company has been offering significant property acquisitions, property funds, developer equity and mezzanine finance and managed property developments in 25 select developments on the US and Germany.
The three co-directors have extensive property investment experience. They also come from impressive senior management positions. Dennis English was CEO at aviation software Arconics and worked for 10 years with Accenture. Liam Hurley also worked with Accenture and Microsoft. He also designed and implemented business process solutions for global corporations. Frank Long held senior roles with the IAWS Group and GE capital Woodchester. Returning to Ireland, he spent five years on the main board of Renault Ireland, followed by four years as director of a venture capital company.
