THE FINE POINTS OF OWNERSHIP
OWNING A VACATION HOME
LIKE NO OTHER
The World offers one of the most sought-after lifestyles on the planet and those that call The World home share a passion for adventure, exploration, and discovery. Ownership enriches Residents’ lives in ways they never dreamed possible; in ways that no other vacation home or private yacht could possibly fulfill. For those who are interested in truly understanding this unique lifestyle, we invite you to delve deeper and explore the following pages for a detailed ownership overview.
FINANCIAL CONSIDERATIONS
Owning a Residence aboard The World is similar to owning a luxury apartment or condominium with an amenities program like a country club. There is an initiation fee and purchase outlay followed by annual ownership costs. These annual costs are comprised of your share of the Ship’s operation, including crew compensation, maintenance, capital reserves, fuel, and the Ship’s food and beverage facilities, which are always maintained at the highest standards. In return, you have unprecedented access to the most exclusive destinations on the planet, incredible enrichment programs and private experiences, bespoke shore opportunities, Michelin-level dining, an award-winning wine program, and boutique health and wellness services at your fingertips.
YACHT & TRAVEL COMPARISONS
Many Residents aboard The World have owned or considered owning their own private yacht. In comparison, the initial investment of owning your own yacht is significantly higher and the annual operating costs are likewise substantial, all of which are paid for solely by the owner, regardless of how frequently the yacht is used.
The World offers an alternative yacht lifestyle with the unsurpassed facilities and services a singular yacht could never achieve on its own. Turn-key staffing, logistics, and itinerary planning—common yacht challenges—are simply eliminated, all while maintaining an exemplary level of personalized service to every Resident. Other advantages include minimal customs and immigration delays, and reduced costs since fees associated with maintaining extravagant mega yachts are often overlooked, particularly with respect to upkeep and fuel, crew, and berthing and dockage. An equivalent travel experience with the same standard of luxury, including lodging, dining, private car service, and first-class flights, could easily cost $500,000 or more on a semi-annual basis.
ANNUAL OWNERSHIP COSTS
The annual ownership costs associated with your home aboard The World cover your share of the Ship’s total operating and maintenance expenses. A significant portion of the fees, including fuel and port charges, varies annually depending on the Journey. In an endeavor to uphold the highest standards of luxury, a portion of the costs and initiation fee is dedicated to the capital reserves set aside to maintain and enhance the Ship with the latest interior design, marine operation requirements, technology, and onboard services. Much of these reserves are used for major Dry-dock refurbishments which occur every three years. As such, she remains functional and aesthetically immaculate at all times.
CREW
To ensure the safety of our Residents & Guests, everyone hired aboard The World goes through a rigorous security and background check. Our Crew is comprised of a diverse group from 40 countries, each of whom meet the most exacting standards of experience, expertise, and commitment to excellence.
FINANCIAL SOUNDNESS
In order to become a Resident of The World, potential owners must pass a thorough security screening and meet certain net worth or earnings criteria. This ensures that all Residents have the capacity to purchase a home as well as honor their financial commitments, even in uncertain financial times. Thus, all Residents are assured their neighbors can and will maintain their portion of financial responsibilities.
DINING
Residents of The World enjoy a level of dining that rivals the finest culinary experiences on the planet. Whether in one of the Ship’s six restaurants or in your private Residence, The World’s master chefs display extraordinary skill, passion, and creativity in preparing global cuisine made from the freshest local ingredients. The Ship’s itinerary is the Culinary Team’s inspiration, allowing them to explore local markets for indigenous produce, fish, meat, and spices. Whether it’s fresh butter and truffles from the French countryside, Ibérico ham from a market in Southern Spain, or Matsuba crab in Japan, each destination is brought to life through gastronomy, further enhancing the Journey.
Residents seeking a truly personalized dining experience can take advantage of the Ship’s Call-a-Chef program. This service truly brings the experience home: a chef will prepare a delicious meal in the privacy of your Residence, be it a romantic dinner for two or while entertaining friends and family. In-Residence dinning can be either a casual affair or more formal, complete with silver service.
The World’s award-winning Wine Program includes over 1,100 hand-picked vintages from 19 countries. Our certified Sommelier Team selects wines from the top viticulture areas of the planet, many of which are rare and difficult to procure. The Ship’s wine cellar has a capacity for over 15,000 bottles stored in two wine rooms, one for red and one for white, each maintained at perfect service temperatures.
The Ship’s Beverage Team pairs the principles of modern mixology with local fruits and spices to create inventive cocktails that change with each destination. Residents can imbibe in both unique hand-crafted creations and classic favorites in numerous lounges and bars on board.
MANAGEMENT
ROW Management, Ltd. (“ROW”), a professional management company indirectly owned by the Residents, manages all the operations of The World, including residential services, technical deck and engine management, Food & Beverage, residential and amenity maintenance, and sales and marketing.
COMMUNITY
The community is comprised of active and adventurous travelers from 19 countries. With the age of Residents ranging from their 40s to 80s, the community enjoys a casual lifestyle to be shared with multi-generational families and friends.
TRAVEL THE WORLD FROM YOUR OWN HOME
To fully maximize the experience and reward of home ownership aboard The World, it’s important you have time for extensive travel. While it is possible to sail only few weeks a year, our typical Resident prefers to sail for three to four months, and some in fact live aboard year-round. The ability to spend time on board allows you to take full advantage of this unique lifestyle. The World is your home at sea, allowing you to travel light and come and go as you please as the Ship continuously circumnavigates the globe. Since your Residence contains your personal furnishings, clothing, artwork, and personal necessities, you can explore the entire planet from the comforts of your own home.
ANSWERS TO FREQUENTLY ASKED QUESTIONS:
OWNERSHIP & MANAGEMENT
Who are the owners of The World?
The Residents are the sole members (shareholders) of The World Resident Holdings, Ltd. (TWRH), which is the parent company of both the Ship Owner, The World of ResidenSea II Ltd., and the Ship Manager, ROW. The World is a Bahamianflagged vessel, and all three companies are Bahamian corporations.
What do Residents actually own aboard The World?
In general terms, Residents acquire a bundle of three elements:
(a) Residency Rights, which provide the exclusive use and occupancy of the Residence and the non-exclusive use and occupancy of the common areas of the Ship;
(b) Shares of stock in TWRH, which are issued in proportion to the square footage of the Residence; and,
(c) The contents of the Residence on the date of transfer with the exception of any items expressly excluded in the purchase documents.
How are votes determined?
The voting units under the Residence Agreement and shares in TWRH are proportionate to the square footage of the Residences. For example, a Residence consisting of 1,391 square feet has 1,391 voting units.
Does a new Resident become a member of The World Resident Holdings, Ltd.?
Upon the transfer of a Residence, the new Resident is entitled to acquire any shares in TWRH that the selling Resident owns. If the selling Resident does not own shares, the new Resident may apply to subscribe for shares. If you have further questions, we can refer you to the Ship’s General Counsel.
How is The World operated and managed?
The World is operated in accordance with the terms of the Residence Agreement, which serves as the constitutional document of The World’s residential community. The World is managed on behalf of the Ship Owner by ROW and its professional management team. ROW is responsible to the Board of Directors of TWRH, which is elected by the Residents.
How is the Board of Directors elected?
The Board of Directors of TWRH, currently comprised of seven members, is elected by the members of TWRH, each of whom is also a Resident. Each member is entitled to one vote per share for the election of Directors or any other matter coming before the members.
LEGAL & FINANCIAL
Can Residents transfer their Residency Rights or rent their Residence?
Owners may sell, rent, lend, or bequeath their Residency Rights, subject to the requirements and limitations of the Residence Agreement, such as the vetting of new Residents and limitations on multiple ownership of Residences. ROW also offers Residents the opportunity to participate in the Guest Stay Program whereby participating Residences are rented to qualified prospective new Residents to enable them to sample the lifestyle aboard The World
How may a purchase of a Residence be structured?
It is possible to purchase the Residence as an individual, trust, partnership, corporation, or limited liability company. Other forms of ownership may be used, subject to approval by the Ship’s General Counsel.
Are there any requirements for purchase?
Prospective Residents must have (i) net worth of USD$10 million or (ii) net income after taxes of USD$1 million for each of the most recent two (2) years and reasonably foreseeable
future years. In addition, prospective Residents must have acceptable references, no criminal record, and two letters of recommendation from existing Residents on board The World other than the Seller. In addition, a security deposit is required for each owner in the amount of 12.5% of the annual maintenance cost and is held in an interest-bearing account for the duration of ownership. A background check will also be conducted for all Prospective Residents.
Can the Ship be my permanent address and are there tax advantages of being a Resident Aboard
The World?
ROW is not aware of any tax or visa benefits associated with ownership aboard The World Each potential buyer is encouraged to consult his or her own advisors regarding questions of tax and domicile. The length of stay on board the Ship is up to each Resident. Several of the current Residents spend a majority of the year on board the Ship.
What are the insurance policies?
The insurance policies of the Residence and the Ship, including but not limited to casualty and property damage, and emergency medical evacuation services covering each Resident, are included in the annual operating costs. Residents may also purchase additional homeowner’s insurance, international medical insurance and security evacuation coverage through our partners.
What legal documents are required to purchase a Residence?
There are four primary documents: the Apartment Rights Purchase and Sale Agreement (purchase agreement), an assignment of the Residence Agreement, an assignment of the Residency Rights to the Residence, and an assignment of the shares in TWRH. The forms of these documents are prescribed by the Ship Owner and have been signed by every Resident to date. Of course, each prospective Resident has ample opportunity to review the documents and to consult with his or her legal advisors regarding their legal effect.
Is there any mortgage on the Ship?
No, the Ship is owned free of any debt.
Is any risk assumed by purchasers for the liabilities of the Ship Owner or the Ship Manager, such as litigation risk?
The purchase and ownership of rights to a Residence have been carefully structured to minimize the extension of risk to the Residents. While no assurances can be made, we believe that Residents are largely insulated from the liabilities of the Ship Owner and its affiliates. Nonetheless, each prospective purchaser should consult with his or her own legal advisor for an independent evaluation.
What are the closing costs when acquiring a residence on The World?
Apart from the initiation fee, annual ownership costs and a security deposit, purchasers are required to pay a transfer fee when acquiring an Apartment on board.
ANNUAL OWNERSHIP COSTS
Are the annual ownership costs fixed or will they increase over time?
Like any condominium/resort community, the operating and capital budgets are shared by the community. The minimum annual maintenance to be paid has been set at $200,000 in 2023 and may increase or decrease by any amount of future approved annual budgets. The minimum annual maintenance aggregates all Apartments owned by any Resident. The annual budget is proposed by the Ship Manager every year and is subject to change and approval by the Board of Directors. The budget is always intended to reflect what makes sense for the community and maintaining an excellent lifestyle, service, and quality of the product. A significant portion of the annual operating costs, such as fuel and port charges, is variable based on the itinerary chosen by the Residents. Annual ownership costs also include a contribution to future capital reserves.
How are the annual Ownership costs calculated?
There are three major elements to the annual ownership costs including a) General Maintenance, b) Commercial Maintenance, and c) Food & Beverage Fees.
1. General Maintenance
Covers all aspects of the Ship’s operations, including port expenses to over 100 ports of call each year from iconic, cultural capitals to Expeditions voyages visiting the most remote regions of the planet, highly personalized service, and a high ratio of space per Resident/ Guest, concierge services, daily housekeeping, spa and exercise facilities, onboard enrichment lecturers, medical facilities, and overall upkeep of the Ship. It also includes fuel costs and administrative expenses managed by the Management Company, covering billing, financial reporting, purchasing, human resources, and other essential functions. To maintain luxury standards and protect the long-term value of the investment, the ship undergoes a renovation every three years, funded through capital reserves contributions.
2. Commercial Maintenance
Covers expenses related to medical evacuation insurance, internet, and phone access.
3. Food & Beverage Fees
Food & Beverage Minimum can be used at any of the Ship’s restaurants, bars, or for room service. A portion may also be used for purchases at the Ship’s onboard grocery. There is also a Food and Beverage Fixed fee that covers all aspects of the Food & Beverage Operations.
RESIDENTIAL RESALES
How many Residences and Studios exist on the Ship?
There are 44 Studios, 20 One- and Two-bedroom Studios, and 104 Two- or Three-bedroom or larger Residences.
How many Residences have been sold?
The original inventory of Residences was sold out in June 2006. From time to time, there are a small number of resales available for purchase
Are the Residences furnished and what, if any, changes may be made?
Since we only have resales available for purchase, each Residence will vary as to décor and furnishings. Most of the Residences are sold fully furnished, including linens, kitchen
appliances, tableware, etc. Each Seller has completed a list of exclusions, if any. It is possible to bring aboard personal furniture, works of art, and other personal items. Modifications to the Residence may be made with the approval of the Board of Directors and are subject to applicable safety requirements and Ship scheduling. All modifications are at the Residence owners’ cost. Limited additional storage space is also provided on the Ship.
What is the communication system on board the Ship and for the Residences?
The Ship is equipped with state-of-the-art satellite Internet equipment and wiring. Each Residence is wired for Internet access with an individual IP address, and international telephone service. A special mailing address in Europe and the U.S. will forward all mail to the Ship, and the list of the port agents to receive mail is provided to the Residents. The World utilizes satellite service providers Starlink and Speedcast with an extensive number of antennas to minimize equipment failure disruptions.. Ship bandwidth allocation is up to 510 Mbps, dependent upon location and occupancy levels.
What is the purchase procedure for acquiring a Residence on The World?
Prospective buyers may request the legal and other documentation for review upon signature of a Non-Disclosure Agreement. Once a purchase offer has been accepted and a purchase agreement has been signed by both buyer and seller, a 10 percent (10%) deposit is required and held in escrow by ROW. The Buyer is also responsible for a transfer fee when closing upon the Apartment.
How long are resales typically on the market?
The length of time a Residence is listed for sale depends on many variables. Some sell very quickly, while others require more time. The average length of time to sell a Residence is six to nine months
Do you provide financing?
No. Payment terms are negotiated between the Seller and the Buyer. While the terms are almost always for cash, a few Sellers have occasionally agreed to short payment terms.
May I pledge my shares in the companies or my residency rights as collateral to secure financing or obligations?
No, the shares and rights may not be used as collateral.
GUEST STAY PROGRAM
Is there a rental/Guest program?
A Guest Stay Program allows interested and qualified potential Residents to experience firsthand the unique and luxurious lifestyle aboard The World prior to a purchase decision. However, due to the exclusive, private nature of The World, Guest Stay access is quite limited and by invitation only. Guests are also required to go through a rigorous security and background check. The Guest Stay Program is not intended to drive rental revenue or occupancy and should not be considered a way to underwrite annual ownership costs.
FRIENDS & FAMILY
Can friends and family travel on board?
Just like your home on land, friends are welcome to stay with you in your Residence on board The World. Alternatively, if you prefer your friends/family stay in a separate accommodation, you can rent one from a selection of Residences through the Guest Stay Program. Residents are required to register their friends/family as their Guests and accept their on board charges to their Resident account. During periods of high occupancy, certain Guest policies may be in effect to ensure the total passenger occupancy does not exceed the legal capacity of the Ship. In these rare instances, Residents may host their guests according to a predetermined allocation calculated by the number of bedrooms in the Apartment(s) owned by the Resident and the total Maintenance paid by the Resident.
GENERAL INFORMATION
How is the Ship’s itinerary determined?
The World embodies depth of travel and global exploration, with multiple days in most ports to facilitate strong shoreside experiences. Three years out Residents are given an option of three routes around The World based on a collaboration of planning and design by Management and the Itinerary Committee, which is made up of members of the Resident Community. The starting point is based on where the previous year’s Journey ends and is strongly focused on input from
the Resident Itinerary Survey to meet and address the varied interests of the Community. Once the route has been selected and voted on by the Residents, the Itinerary Committee, along with Management create the day-by-day itinerary taking into account world events, special festivals, expedition opportunities, as well as distance, fuel charges, port costs, etc. The final Journey is submitted to the Board of Directors for approval and then the final day-by-day itinerary is made available to the Residents.
Is the Ship safe in terms of security systems?
Resident & Guest safety and security is paramount.
The Ship has an extensive security system, and access to the Ship is carefully controlled. It is not possible to enter the Ship without a special invitation, security screening, and proper identification. The Ship’s Journey is carefully planned and adjusted if needed to avoid areas of known conflict or other hazards.
What are the medical facilities on board?
The Medical Center on board The World is fully equipped and exceeds all recommendations of the Cruise Lines International Association. The Medical Center is staffed full time by a qualified physician and nurse, and their qualifications meet or exceed the healthcare guidelines of Cruise Ship and Maritime Medicine Section of the American College of Emergency Physicians. The Center has emergency, trauma, and diagnostic equipment for adults. A full list can be supplied upon request.
The World has partnered with the highly respected Global Rescue for their medical evacuation services. Should medical evacuation be necessary for any Resident of The World, Global Rescue’s highly trained medical personnel are available to provide expert guidance, support, and service. Global Rescue include exclusive relationships with Johns Hopkins Medicine, Elite Medical Group and Partners HealthCare to provide the best-in-class services.
Are Children Welcome on board?
The World is primarily an adult Ship, and yet much of the enjoyment of travel is sharing with loved ones – children and grandchildren. The minimum age aboard The World is nine months except during Expeditions, when the minimum
age is one year. In the December holiday period and from the May to September months, youth coordinators offer creative onboard youth activities and events. Details of the Ship’s youth guidelines and youth program (Camp Caravel) are available upon request.
How does The World ensure compliance with all marine requirements?
The Ship undergoes regular inspection by our flag state (The Commonwealth of the Bahamas) and adheres to all IMO regulations. Management is mandated to ensure all inspections are met and to date The World has never failed an inspection. We have experts within our marine operations department and, as and when necessary, outside consultants are engaged for technical work.
Are there any future certification or sustainability requirements that could affect the continued operability of the vessel?
As with all ocean marine vessels, The World will be technically modified and upgraded from time to time to comply with applicable carbon reduction and other emission requirements for ships going forward. We are always staying abreast of this development and preparing upgrades as regulations are being imposed and technology becomes available in the years ahead. There are, however, no absolute date or time of certification set for such requirements that would make the Ship cease operations.