Hi Jason,
I look forward to working with you and your family business.
I am interested in leasing the vessel Norlantean now. With the option to working out a plan for the leasing of the Green Isles also.
I am also very interested in your services in providing man-power on the marine crewing of the vessels. I also already own 12 meter and 20 meter vessels that I would like for you to keep crewed and maintained.
My plan is to buy 1-2 survey vessels per year for the next few years. I have developed many survey software products and have a growing and expanding electronic survey equipment rental business. Providing vessels fully equipped, totally integrated, and ready for survey is where I’m going. Having a pre-mobilized, pre-calibrated, and pre-tested survey systems ready to go with a very high-spec spread of equipment is what the industry needs.
Below are two methods of payment we can look at.
In general a leasing starts the day the vessel is ready to work, and monthly payments start then and just continue. But in this case there will be some refit construction needed before it is ready for survey operations. The cost to do the refit is expected be between £200k and £250k pounds. Most likely the vessel will be ready for work by the first of the year. To help with the initial refit expense burden, I will accelerate the first two years payments, as follows. I will start the monthly payments when the vessel is ready to work. At the end of the first summer season, in November 2013, I will pay one full year’s lease in advance, for the second year. This will lessen the repayment burden of the refit. With the figures below, by November 2013 I will have paid £360,000 pounds.
Another method I would be happy to do, is to pay the first year’s payments, in total (£180k pounds), when the lease starts, and then go to the month-by-month payments from the second year on.
I will lease the vessel for 5+ years, with a year-by-year roll-over lease for succeeding years.
The monthly leasing rate is figured as follows: Current vessel value is £750k pounds with the estimated refit max cost at £250k pounds, making its value £1,000,000 pounds. A yearly lease rate of 18% equals a yearly sum of £180k pounds a year. Monthly rates at £180k/12 = £15,000 pounds a month.
Thank you for your great tour of your home island. I look forward to seeing the Orkney Islands again. The smoked salmon was great.
Best Regards,
Scott Lafferty