Will Storylines provide a financial statement to accompany the Agreements?
Storylines financial viability is separate to the risk of a residence shareholder due to the fact that their investment is held safe in a regulated fund. This is a safeguard for both the residents and the company. Storylines will report vessel operational costs quarterly which will include key indicators such as fuel prices, capital requirements and risk assessments. The company will also deliver an in-depth annual report for all residents of the ship.
What is included in the unit maintenance (ie a toilet leaks, a chair breaks…)
Ongoing maintenance related to ship operations will be taken care of by Storylines (plumbing, wiring, etc). Neglect, accidents and damage incurred by occupants is the financial responsibility of the primary resident. Storylines is not responsible for maintaining nor upgrading furnishings.
What is included in annual fees for general ship maintenance?
The annual fee includes not only maintenance of the ship itself which requires constant upkeep, but also consumables utilized to keep the ship running and costs associated with operation of the ship such as port dues, surveys, certification, crew salaries, waste disposal, etc.
Are there any ship fixtures or equipment that will be leased from suppliers and therefore incur ongoing operating costs, as opposed to being included in the initial capital cost?
There may be a minimal number of lease-backs, but only on consumables which need to be replaced anyway. Rather than having a huge upfront expense every 5-7 years with a new multi-million dollar piece of equipment, they can be leased from certain suppliers at a 0% interest rate. Consumable things that have wear and tear and have an end date.
Please specify what expenses will be covered by the ship’s insurance.
Storylines will cover all Marine Risk insurances such as hull/machinery risks, Third Party indemnity risks usually referred to as PandI ( Protection and Indemnity ) and a blanket cover for coverage of legal representation of the company. Residents are required to cover their own personal risk, medical risk and loss of their own property brought on board of the vessel.
Who determines the operating budget for the ship and how are the annual assessments determined?
We use industry benchmarks to determine what the costs should be and we have confirmed those numbers with multiple professionals within the industry (internal and external to Storylines). The operating expenses have been ratified by operational cruise finance experts. We have a very detailed budget by expense type. This will be fully reported on an annual basis.
Will the provisioning fee cover the final 3 months of our lease/residency, or will it only be applied to whatever the provisioning fee is at that time?
It will be applied to whatever the provisioning fee is at that time.
What is the escrow company that Storylines will be using?
The Storylines approach includes an Alternative Investment Fund (AIF). It became apparent that this was the best solution for the legal structure and would also offer the highest level of security for consumers due to the regulators and auditors involved. With an investment fund, everyone can be part of the same basic legal structure and the same rules apply for everyone regardless of their country of citizenship. Everyone linked to the fund (including the depository bank that controls the operations within the investment fund, the fund manager and the auditors such as DeLoitte, BDO or Price Waterhouse Cooper), must be licensed by and supervised by the Financial Market Authority (FMA). The shares will be numbered and legally linked to a residential unit number. Shares can always be transferred to others so you can buy and sell.
Is this a real estate transaction or a financial investment?
Both. You are investing into the MV Narrative General Fund and in return you receive the right to occupy your residence aboard the ship for a specified term. We have done an extensive amount of research on how to pool people from all over the world and find a legal jurisdiction and legal structure that works for everyone. You are not buying a piece of land in a particular country so there is no basic legal framework to follow. Complying with all the various laws of the many resident countries around the world was also not an option.
Under what jurisdiction is the Agreement?
Liechtenstein, part of the European Economic Area (EEA)
What guarantee do we have that our payments are secured?
The payments are investments inside a regulated and audited alternative investment fund (AIF). The regulatory rules of the fund indicate that Storylines has to act within the contractual agreements it has with the fund’s investors (residents). Investors can view their investment in the fund and can get copies of audit reports, etc. If Storylines were to step outside of our contractual arrangement with the investors (residents), for example not delivering the ship, the investors can activate the related clause and withdraw their funds. Storylines will have state backed guarantees so any investment regardless of where it sits is always secure. This ensures that the ship will be built regardless of unforeseen circumstances.
What are the terms for refunding the milestone payments?
The payments are only returned if Storylines does’t fulfill our contractual obligations. If you decide to withdraw from your deposit agreement, we can re-sell your unit (with fees).
Will I need to acquire liability insurance? What about insurance for the contents of my residence?
We partner with an insurance provider so you will have the opportunity to wrap all your insurance needs together: health, personal property, liability, travel, etc. Storylines does not cover your personal effects.
Will the Agreements be delivered electronically or a hard copy mailed to us?
We deliver them electronically via Blockchain Propulsion which provides us with military grade encryption. This method also satisfies the fund regulator’s requirements for KYC, PEP and AML checks. No contracts will be mailed.
Will there be a separate Homeowners Association agreement?
There will be a similar structure of an HOA in place where residents can get involved with the steering committee to shape the community bylaws for the community standards. It will continue to evolve before and after sailing. There will also be sub-committees of special interest groups.
Do residents make their own arrangements for upgrades and renovations to our units? Or are all the units renovated every 10-15 years in dry dock, paid for by our annual fees?
Any upgrades that you want to do are at your own expense. This type of work can only be done at certain points when the ship is in a dry/wet docking period. The plans will need to be approved by Storylines. Residents can do this or they can opt to have Storylines complete the renovations (likely every 12 years) also at the resident’s expense. Annual fees do not cover remodeling a residential units.
Does Storylines maintain the interior furnishings inside the units? What about mattresses, couches, TVs and linens?
Residential developments do not maintain or replace your furniture and linens. The unit will be turn-key when you receive it. It’s your home and it will be up to you to maintain and upgrade it (outside the walls) at your own expense.
Lease values: Can we sell the remaining lease term at market prices? How will the market value of a residence be established at time of sale?
The resale value is market value which is based on supply and demand.
What will be Storylines commission at sale? If a direct sale is arranged, what will be Storylines commission on that price?
A standard real estate type commission will apply to to a resale, a lesser amount will apply should you find a suitable buyer. Storylines will still need to screen these potential residents.
The average person is not familiar with blockchain. Can you please explain it since it will be involved with signing the Agreements?
At its simplest form, a blockchain is a digital collection of information about transactions. This is also called a ledger, which is why this word is often used when describing blockchain technology. When you have many different collections of data, they’re stored together using a system based on blocks of data chained together.
For a variety of reasons we do not use paper documents; everything is digital. We are using encrypted technology to keep sensitive data secure (hosted in data centers in Switzerland). We are working with Blockchain Propulsion to digitalize our documents, KYC/AML onboarding, e-signatures, online identity verification, and end-to-end purchasing of residences in a detailed way that complies with all legal and regulated processes.
With the volume of agreements that Storylines is processing now and well into the future, this is the most streamlined way to handle that amount of documentation. In short, the reason we are using blockchain technology is because it is simple, compliant and digital.
In light of the global pandemic that has impacted world travel and the cruise industry, please provide insights into Storylines operational sustainability.
Storylines is not a cruise line. Cruise lines operate by selling tickets so it’s extremely problematic when they need to cancel cruises.
Our residents pay for the ship’s operation so we are well prepared and plan to continue operating through any pandemic. Our itinerary may be affected but that is the most impact we anticipate to our operations. In a worst case scenario, the ship will relocate to an island nation where we will live as temporary residents and live like locals for however long it takes until we can resume travel. To learn more about our pandemic protocols including health, safety and technology, please click here.