"We have plenty of space for Your yacht Mr Abramovich"

Pelorus in Antibes

Here is an interesting article published on Baltic Business News website:

Latvians offer bankrupt country to Russian oligarch

More than 400 Latvians have sent a letter to Russian oligarch Roman Abramovich, asking him to buy bankrupt Latvian country, arileht.ee quotes Ria Novosti.

“As You know our home country Latvia has gone bankrupt and is in negotiations with the IMF to get a loan in amount of EUR 7.5 bln,” says the letter.

After that is a description of the goods, describing Latvians as laborious and pleasant people.

“In case You’d like to buy Latvia then the population is laborious and pleasant, environment is pure and we have plenty of space for Your yacht,” the letter says.

It is not know how much Latvians ask for their country.
At the same time the petition in which Latvians beg for occupation from Sweden has collected over 12,000 signatures.

The article does not mention if the Latvians know that Mr Abramovich has 3 superyachts and has lost almost more than $20 billion in the recent economic crisis...

Superyacht website: Oceanco Anastasia

Check out the rare interior pictures of the 75m Oceanco Anastasia!
And you can even choose your menu here...

>> www.yachtanastasia.com

Gamelin shpyard CEO commited suicide

The Alcyone - picture by Wikipedia

Joël Gamelin, the CEO of the Gamelin shipyard commited suicide just before Christmas.

The La Rochelle shipyard specialised in the construction of custom racer (L'Oreal) and well as aluminium superyacht like the Maxi 115 for CIM shipyard. The shipyard was hit hard by the crisis and had to cope with financial problems.

The Gamelin shipyard also built the expedtion vessel Alcyone for Captain Cousteau which features a new marine propulsion system, the turbosail.

Looking for a salesperson?

Steve Balmer, the current Microsoft CEO and friend of Mr Paul Allen, the proud owner of the 126m superyacht "Octopus" built by Lürssen in 2003, was also a very dynamic saleperson...

Check out this video where Balmer sells Microsoft Windows 1.0:

Superyacht picture of the day: Lürssen Dilbar

click to enlarge

Designed by Tim Heywood for a Russian owner, the 110m superyacht Dilbar (project Opal) built by Lürssen in 2008 is currently at anchor near the Cap d'Antibes.

This is one of the first green yacht which combines diesel mechanic and diesel electric propulsion system with exhaust gas particle filters for all the generating sets and for the main engine exhaust at lower power.

However, the performance of the yacht is also interesting with a top speed near 20 knots !

At the same time, an article published on Timesonline reported that "More than 100 Russian oligarchs are seeking bailouts from the Kremlin after taking on too much debt during the country’s commodities boom of the past five years"...

>> Times

Volvo Ocean race news

© AFP/Archives - Jose Jordan

Russian supermaket mogul and sponsor Oleg Zherebtsov announced that Team Russia will not take part in the Singapour-Quingdao race because of the current economic situation.
This year, the Volvo Ocean Race will finish in June 2009 in Saint Pertersburg.

Check out one of the official 2008-2009 trailer promo !!

How Luxury Executives Are Handing the Financial Crisis

Merry Christmas and Happy New year !

Just a small selection of some interesting articles about yacht, yacht owner, crisis...

• Harry Macklowe: the real estate mogul is hit hard by the credit crunch; he is also the owner of a 112ft yacht
• John Devaney, the famous hedge fund manager, was often seen with his 124-foot yacht and Sikorsky helicop but he had to sell his yacht, called Positive Carry...and his chopper.
• Francesco Trapani, chief executive of Bulgari Group, is cutting back on the fixed costs of his jet-setting lifestyle. The jewelry, luxury-goods and hotel magnate recently sold his 137-foot yacht, the "Christianne B"

Is the superyacht market a Bull market ?

According to the French newspaper Le Figaro, Mr Bernard Madoff, the former Nasdaq chairman, is also the proud owner of "Bull", a Leopard 27m built by Arno shipyard.

The yacht, which is registered in George Town, is currently lying in Antibes near a pristine Sunseeker.

A bull market tends to be associated with increasing investor confidence, motivating investors to buy in anticipation of future price increases and future capital gains...

Ferretti SpA CEO resigns his position

Vincenzo Cannatelli, chief executive officer of Ferretti SpA, has resigned as director of Ferretti's subsidiary companies with immediate effect.

According to a group statement, the decision takes account of the extension of the timetable for a potential IPO, given the financial market crisis and, consequently, the need to allow the company to lay out an organisational structure that is more consistent with current market conditions

Third 50m motoryacht sold for Couach !

The French shipyard Guy Couach officially announces the sale of the third 50m motoryacht "Fly 5000" built in composite at the Gujan-mestras facility.

According to Couach, the yacht, built in Kevlar and powered by twin powerful MTU 20V4000M93 engines, is capable of crossing the Atlantic in 10 days and reach a top speed of 30 knots.

The fully custom Fly 5000 also features an amazing 48m2 garage taht can be transformed in a large relaxing area.

This French shipyard is also famous for his military vessels.

Superyacht shipyard: Palmer Johnson cuts job

"Vanquish" for sale with Gaspard Yacht

Palmer Johnson Yachts said Friday it cut its work force because two yacht orders were pushed back to 2010.

The pres release said that seven yachts had been ordered for 2009, but two orders were delayed until 2010. However, it said no orders had been canceled. With 375 employees and 126 subcontractors working in Sturgeon Bay, the shipyard delivered six yachts in 2008.

The two second-hand 120ft Palmer Johnson "Vanquish" and "Stanley" are for sale for a long time now.

>> Vanquish website

Marketing Strategy: the charter show business...

Although charter show is certainly a profitable business for the organizers, it may not be the same for the yacht owners...

Article published on IBI news
By IBI Magazine/Michael Howorth

"The two premier charter yacht shows both ended on December 9, signalling the start of the Caribbean Christmas charter season.

Once again the shows clashed and overlapped, ensuring that the charter yacht brokers could only divide their time between the two shows or miss one out altogether.

The result was that everyone suffered, including the yachts and their owners who, having paid substantial sums to attend, were delivered short change with the drop-off in time each broker was able to devote to the yacht.

Each show had declared, before the event, a stunning confirmed booking list with hardly room left for late entries. Yet in both venues, empty berths clearly indicated that yachts had not made the time slots because of bad weather, late departure from refit yards or had simply pulled out of attending. Several no-shows contacted by IBI stated that they were never confirmed bookings, despite their names appearing in show guides.

The Antigua Charter Yacht Meeting has, over the years, clocked up 47 successful shows and this one that ran from December 4-9 was no exception. With 84 yachts registered and just six not showing up or cancelling, the show also attracted 234 accredited yacht brokers and 130 trade visitors.

The newly instigated St Maarten Chart Yacht Show, now in its fourth year and the second year running under the auspices of MYBA, who had earlier unsuccessfully tried to work with the AYCM, ran from December 6-9.

The show was billed as attracting over 45 large motoryachts yet when IBI counted the yachts open as show exhibits there were just 35 available all of them powerboats. The show also attracted 139 credited yacht brokers and 56 trade visitors with many having visited both shows."

Superyacht market: my yacht does not sale dilemma

According to an experienced Monaco yacht broker, here are the top 4 reasons why a yacht does not sale:

1. The asking price is too high
All the superyacht brokerage companies prefer to list a yacht with a central listing agreement (sales and charter) for obvious reasons. Unfortunately, some brokers want to please the owner and agree with an unrealistic asking price.
Sometimes, the owner expectations are also too high...expecially when a bigger yacht is coming.

2. The yacht is in poor condition
Dirty boats don't sell.
Furthermore, the potential buyers become very suspicious when there is no service history available, an important crew turnover or no crew onboard during winter time.

3. There is a poor/bad marketing program
Poor quality pictures taken with a mobile phone (don't laugh, it happens more often than you think), incomplete yacht specifications, untargeted marketing campaign, unprofessional silk tied yacht brokers are amongst the common reasons...

4. This is a One Off...
Bespoke 80's interiors that made the owner so proud, higly customized superyachts and hull N°1 are very often more difficult to resale.

However, there are certainly other good reasons like a tough market, the lack of berth available, the rising cost of fuel...

Superyacht tax regulation: the VAT question...

Cross-border leasing scheme, "exotic" financing solution, offshore management company and charter activity are amongst the usual solutions provided to reclaim/avoid paying taxes like VAT.

Here is an interesting article published on Tax-news.com regarding a recent European VAT fraud on yachts:

November 2008
"Under the joint direction of the Netherlands and French tax authorities and customs services, European tax investigators have discovered a multi-million euro VAT fraud concerning the construction and delivery of luxury yachts.

Approximately 300 owners of yachts and companies involved have settled unpaid tax bills to the tax authorities of 11 European Union (EU) member states.

The total value of the yachts investigated amounted to more than EUR1bn, with Dutch tax and customs levying EUR31m in additional tax assessments. A previous smaller-scale VAT probe undertaken by the Dutch and Belgian authorities in 2001 resulted in additional tax assessments of EUR10m.

Dutch State Secretary of Finance, Jan Kees de Jager, considers it important that these kinds of tax frauds are strictly investigated.

"Most people just pay their taxes properly. Then they expect that the tax authorities investigate people who do not do so. The Dutch Tax and Customs Administration has played a leading role and achieved good results with the investigation."

De Jager said that he would look into the possibility of further joint operations with EU tax authorities to prevent tax evasion.

The various tax authorities and customs services involved carried out 322 investigations into 225 transactions. In addition to the Netherlands and France, the joint initiative was assisted by ten other member states, including Belgium, Denmark, Germany, Ireland, Italy, Luxemburg, Malta, Spain, the United Kingdom and Portugal. In all, 150 people were involved in the probe.

The complete operating chain, from yacht builders, dealers and intermediaries, up to the end user, was closely scrutinised during the investigation.

The extent of the VAT fraud has surprised the government of the Netherlands, which has announced that an international network of tax specialists at the various EU tax agencies will be established to contribute to an ongoing investigation.
The Dutch government has also announced that the number of inspections in Dutch marinas will be increased and extra attention given to the purchase of yachts to ensure that VAT has been paid."

Superyacht Charter Market: an American point of view

Obviously, the superyacht market is rather slow now.
The owners a well as the big brokerage companies are hit hard by the economic crisis but what about the charter market ?

Here is a copy of an interesting post published on Power & Motoryacht Forum:

"Hi everyone - I'm new to this wonderful Forum site, so please forgive me if I make some mistakes as to etiquette, etc.

As to the financial crises, I can share my perspective from the charter side of the yacht industry. Our US-based company, SailAway, deals primarily in megayacht rentals. [ http://www.1800sailaway.com ]

We have seen a dramatic drop in both inquires and charters. Most disturbing for us is the fact that 45% of our summer rentals come from Russian clients. In summer, 2008, this percentage dropped to 10%.

Our winter holiday business (Christmas and New Years periods) is off 70%.

You would be amazed how much "inventory" is still available for late December charters in the CAR. We are now getting calls from yacht managers at CNI, Fraser, etc, begging us for work. Sure wish we could oblige, but the calls for charters are just not there.

The interesting by-product of this situation is the availability of "deals" not normally associated with charters. In most years, the charter yacht owners set strong premiums such as 14 night minimum rentals with 10% surcharges at year end. This year, over 70% of the available charter yachts are willing to accept 7-night rentals.

The few potential customers that have called now see an opportunity to work a deal for a rental. One repeat customer asked us last week to submit an offer that was $55,000 lower than the yacht's published rate (220k down to 165k). The yacht manager said the owner will accept the offer AND throw in an extra night free of charge! Such as deal was practicaly unheard of just one year ago.

It's hard to predict a bottom to this financial mess, but no matter our business or jobs, we are globally all in this together. Let's hope we continue to look out for one another and help those in our families and circle of friends who might be struggling, especially with the holiday season upon us.
==========
If any of you have charter-related questions or want to see interior pictures of specific charter vessels, please let me know - I look forward to participating in your discussions, etc!

Jim Araiza / http://www.1800sailaway.com / jaraiza@1800sailaway.com"

>> Forum

Top Deal: Mangusta 92 for sale at terrific price

Click to enlarge

Mangusta 92 for sale - 2004
VERITAS certification - commercialy registered
4 double cabins + crew, superb panoramic lounge
Warm mahogany interior in perfect condition
Extensive equipment
Won the 2003 European Yacht of the Year
Asking price: 4,700,000 euros
The Owner wil considere any serious offer
Contact us for more information at yachtspec@gmail.com


Panoramic upper lounge with electric hard top


Full beam Master cabin

Contact us for more information at yachtspec@gmail.com

Superyacht charter business: small is beautiful

Superyacht charter broker Cindy Brown has re-launched her independent charter-booking business, Ultra Marine Yacht Charters after 4 years with Nigel Burgess new york.

Why?
Cindy Brown explains that "while she enjoyed working within a large company format for four years, she missed the individualized service that she had been able to provide with her own company"

Brown adds: "I’ve worked small and I’ve worked large and bigger isn’t always better.

All charter brokers have access to the same yachts but, not all are true experts. Whether part of a large company or Internet based operations who offer every yacht afloat, not all brokers truly understand the luxury market and the desires of the discriminating traveler.

If you’re like me, you want special care, understanding and someone who can deliver the quality you expect.

Ultra Marine, a boutique company, is dedicated to offering highly specialized service and providing the insight required to ensure your yachting experience is more than a success.

When you book a charter with Ultra Marine, you benefit from my personal network of international insider contacts, my perfectionist standards and my fanatical attention to detail. I assure you that your yachting experience will be under my personal guidance."

Superyacht refit: Octopus refit completed

The 126m superyacht Octopus, built by Lürssen shipyard in 2003 and design by Espen Oeino, has just completed a major 30 million euros refit by ITM shipyard in France.

The refit comprises an important paintwork, a complete mechanical service as well as an electronic upgrade.

The yacht belongs to Microsoft co-founder Paul G. Allen who also owns the 92m Tatoosh.

Superyacht history: Christian Radich in Nice

The Christian Radich, a Norwegian full rigged three masted steel hull ship named after a Norwegian shipowner is currently lying in the Nice harbour.

According to Wikipedia, "The vessel is 62.5 m long, with an overall length of 73 m including the bowsprit and a maximum width of 9.7 m. She has a draught of about 4.7 meters and a displacement at full load of 1050 tons".

Are yacht brokers having an outdated approach?

The recent announcement of the euros 9.5 million price reduction of the brand new 50m Benetti Alibella proves that some owner are hit hard by the global economy dowturn combined to the credit crunch.
With so many superyachts for sale, the market is rather slow...and tough.

Is it time for a new sales strategy?
Is the traditional approach (photo, website ads, glossy brochure, yacht show...) still viable?

Let's have a look at the UK property market: the estate agents and the owners offer huge incentives.

* Surrey developer Kevin Sheehan built a villa in Spain and sent 32,000 emails to register it on sales websites around the world.

* Essex businessman Rick Hill is "throwing in" a £150,000 yellow Lamborghini with his £1.15 million six-bedroom home on sale in Hockley.

* Countrywide estate agency in Glasgow held a "sale day" of £16 million worth of homes with an average 22.5 per cent price cut.

* Six sellers have staged raffle-style contests to cover the sale price of their homes – but the Gambling Commission is investigating their legality.

* Plymouth developer and agent David Trathen is accepting boats and horses in part-exchange deals for homes.

Should the yacht brokerage company change their sales strategy?

>> Article published on Telegraph

Superyacht winter shot: Heesen Mon Plaisir

The 47m displacement Heesen Mon Plaisir, launched in January 2008, was at anchor near the Cap d'Antibes.

Mon Plaisir, the third 47m displacement vessel recently built at Heesen Yacht, features a superb blue hull and an external design by famous Dutch styling studio Omega Architect. She is powered by two 1,555 HP MTU diesels engines and can reach a top speed of 15.5 knots.
The range is about 4,000 Nm range.

British shipping tycoon killed in Mumbai massacre

Andreas Liveras, 73, was gunned down moments after he phoned the BBC from inside the Taj Mahal hotel to give an eyewitness account of the terrorist attacks.

Andreas Liveras started the yacht business with one 25-metre yacht and has owned 13 luxury yachts over the years.

Currently Liveras Yachts operates p/v Alysia 85.3m (280’), built in 2006 to SOLAS classification and accommodating up to 36 guests in sumptuous surroundings and p/v Lauren L 90m (296’), built in 2002 to SOLAS classification and refitted in 2004 and most recently in 2008 and accommodating up to 40 guests, but most importantly two new builds at 98.2 metres (320 ft) each have been commissioned and are scheduled to join the fleet in 2011.

Most importantly preparations for additional new builds, two at 120 metres (395 ft) are well into their development stage.

>> More information on the Telegraph website here
>> Liveras Yacht website


OFFICIAL ANNOUNCEMENT BY LIVERAS YACHT
Friday28th November 2008

Announcement relating to the death of Andreas Liveras
It is with much regret that Liveras Yachts must announce the death of our Chairman Andreas Liveras who was killed during the terrorist attacks which have been taking place in Mumbai over the last 24 hours.

Not only was Andreas one of the great entrepreneurs and characters of the yachting business; he was also a much loved and respected father, grand father and friend. He will be greatly missed by all who loved him and knew him.

Andreas’s family extend their thanks to all of those who have sent messages of sympathy and support,bthey are greatly appreciated.

Superyacht: Baglietto Annamia superstar...

Spotted today in the baie de Cannes, the sleek 2006 42.75m Baglietto Annamia, designed by Pazkowski, gently drift during a movie shoot...with all fenders out.

Superyacht picture: it's winter time in Antibes !

MY Virginian, MY Ecstasea

It is winter time in Antibes and with the temperature drop down, there is some snow near the Ramparts in Port Vauban !

Superyacht history: Queen Elizabeth II in Dubaï

After years of exciting trips on high seas, luxury liner Queen Elizabeth 2 is arriving in Dubai where it will be turned into a luxury floating hotel.

Let's hope there is some more room for the French aircraft carrier Clemenceau...




More information and a complete photo gallery here

Queen Elizabeth timeline here

Superyacht job: the crew shortage is over

According to Ian Pelham with The Crew Network, the turnaround began back in the spring. Pelham noted a sudden rise in the number of crew left wandering the docks after a full season in Antibes.

“We have over fifteen hundred crew actively looking for work right now,” says Alison Overington with Northrop and Johnson Crew Placement."

>> More information on Dockwalk

Superyacht infrastructure: Cannes Port Canto back to business?

A recent article published in the French newspaper Nice Matin reported that, according to the Cour d'Appel Administrative de Marseille, the Cannes authorities will be able to start the refurbishment of the International Sporting Yachting Club de la Mer (ISYCM).

The total estimated cost for the refurbishment of the building is euros 20,000,000.
The ruins of the sports complex remained as they were until now...


The current building of the ISYCM...


Since 2002, the City of Cannes has managed Pierre Canto port which has a capacity of 650 boats along 2,200 metres of mooring space.

The notions of a “garden port” and a “clean port” have been central concerns in the large-scale investments made in recent years (revegetation, waste collection centre, underwater works, etc.). These efforts were rewarded by the granting of the highly coveted ‘Pavillon Bleu’ label in 2008.

Superyacht owner: the Queen...

Private collection of Sidney Cumpe

Published on SWNS website
"It's a charming, impromptu snapshot of the Queen, showing her as she's rarely been seen before.
Wearing a sun hat and clasping a pair of sunglasses as she relaxes on the silver sands of a tropical beach, she could almost be any other holidaymaker. But the Royal Yacht Britannia riding serenely at anchor on the azure blue ocean behind her, gives the game away.

Smiling broadly, the Queen appears totally relaxed as she soaks up the sun in an all too rare off-duty moment, a million miles from the constant pomp and ceremony and affairs of state.

The Queen even showed a flair for fashion for the photograph believed to have been taken on an overseas tour in the 1970's as she wore an Oriental-style jacket...and a pair of flared trousers"

Superyacht brokerage: an Owner's point of view

Talking about his yacht broker:
'Bloody car salesmen. They'd sell anything for a buck.'
A Yacht owner point of view

Superyacht picture: Peri 29m "Bibich"

Click to enlarge

Spotted in the baie de Cannes this morning, the brand new 2008 Peri 29m "Bibich" designed by Bill Dixon features a green metallic hull and sleek lines.: she is available for charter with Primo Yacht Antibes

Superyacht market trend: hard times for the old-fashioned yacht

Market trend: the recent sales results with the big brokerage companies all show that recent boats in the 2000's offered at a competitive price in good condition are stiill very sought after by potential buyers.

2003 Hakvoort Saga sold
2003 Falcon Synergy sold
2006 CNB Spip sold
2004 Mangusta 108 Masterblaster sold

It is a tough market for the yachts built in the 80's and in the 90's...

Superyacht Owner/Broker/Shipyard business...

Article published on the website Telegraph.co.uk - 17 November 2008

The seller of one of the world’s most luxurious yachts – the 164ft Alibella – is offering a €9.5m (£8.1m) discount to a buyer prepared to complete a deal within the next 30 days.

Alibella – which has been finished with gold leaf and marble and comes complete with a helicopter landing pad – is one of a number of super yachts to have had millions of pounds slashed from their asking price in recent weeks.

Edmiston & Company, the London-based yacht brokers, have offered Alibella to its clients just six months after the super yacht was launched and delivered to its unidentified owner.

“The current global economic conditions have produced a number of interesting opportunities on the large yacht market,” wrote William Christie, a broker at Edmiston, in an e-mail to clients. “The brand new 50 metre Benetti, Alibella [has been] reduced in price by €9.5m ... the owner will sell at this massively reduced price if the deal can be completed in under 30 days.”

The discount reduces the cost of the yacht – which can accommodate 14 guests in six cabins – to €24.5m.

Edmiston is also offering a number of second-hand yachts at substantial discounts amid evidence that the financial crisis has hit the super yacht market.

According to the broker the price of the 150ft Midlandia – which comes complete with bullet-proof glass and an outdoor cinema – has been reduced from €27m to €19.9m.

The 163ft Thunder B – which includes a swimming pool – has been reduced in price from €18.9m to €13.7m. While the 146ft Candyscape can be yours for just €12.9m – reduced from €15.5m"

“It is a buyers market for super yachts,” said one yacht broker. “There are a lot of yachts around at the moment. People are being forced to sell their boats.”

>> Link to Telegraph article

In another interview for Fairplay, the Edmiston broker explained:
PRICES are being slashed for super-yachts during the global financial squeeze, but shipyards might not be harmed, a sector leader said today.

Speaking from his London office, super-yacht broker William Christie told Fairplay: “A lot of yachts have been built recently, and there aren’t that many buyers. “A year ago yachts were selling at significant premiums. Rich people were willing to pay a premium. People aren’t running in right now.”

Christie said shipyards won’t be suffering as much as buyers: “Lots of yards have full orderbooks, so they shouldn’t be too affected. The losers are those who ordered a boat prospectively, because they mightn’t be able to get a premium now. But there remain some “good opportunities”, with owners “clearly looking for a quicker deal”, he said.

“There’s more stock on second-hand market than in the past 3-4 years,” Christie explained.

Would you put for sale your superyacht with these guys?...or would you rather buy a superyacht with them?

Superyacht picture of the day: Burger Mirgab V

Click to enlarge

Spotted in Cannes Port Canto harbor, the 144' tri-deck "Mirgab V" was built by Burger Boat USA in 2006 for the Alshaya Family from Kuwait.

This massive superyacht was on display at the lst Cannes Boat Show and is for sale with Fraser Yacht at euros 22,500,000.

Rodriguez Group reported a 34% drop in sales for 2008

Yesterday, Rodriguez Group reported a 307.7 M euros turnover for 2007-2008, down 34% in comparison with last year.
The company's stock, which has fallen nearly 90% since last year, closed yesterday at euros 4.61 on the CAC 40.

2008 Key figures

New yacht sales: -30.4 % -> 214.7 M euros compared to 308.5 M euros in 2006-2007
Second hand yacht sales: - 57.7 % -> 44.5 ME, compared to 105.5 M euros
Service: -10.2 %

The Mangusta and the Leopard range, built in Italy under Rodriguez Group supervision, are famous between Cannes, Monaco and Saint Tropez and generally ensure high charter revenue to their owners: some Leopard 34m are often chartered between 60-70 days per annum at a euros 90,000 rate per week.

Carl Icahn's 177-ft motor yacht up for sale

Published by Reuter

"Wanted: A buyer for billionaire investor Carl Icahn's 177-foot motor yacht.

Brokerage firm Northrop & Johnson listed Icahn's yacht, Starfire, this week.

The vessel "boasts accommodations for 12 guests in six luxurious staterooms," the brokers wrote, adding that Starfire has a helicopter pad and Quantum Zero speed stabilizers.

Icahn was among a few ranked 46th in a list of the world's richest people published by Forbes magazine in March, with a net worth of roughly $14 billion.
He is a veteran activist shareholder who has taken stakes in many companies.

Icahn was not available to comment on why he is selling the yacht."

(Reporting by Svea Herbst-Bayliss and Mark McSherry, editing by Richard Chang)

Shipyard: Benetti
Year: 1997
Name: STARFIRE
Length: 177 ft / 53.9 m
Price USD: $37,500,000

>> Starfire website
>> Northrop & Johnson

Superyacht picture of the day: Sarafsa in Nice harbor

Note the starboard balcony near the water

The 82m superyacht "Sarafsa" (project "P54") built in 2008 by Devonport shipyard and designed by Andrew Winch is currently lying in the Nice harbor. This roomy and beamy (15m) superyacht was designed for a Middle Eastern owner who previously owned a 54m Amels.





Note the partly wooden transom door

Devonport Royal Dockyard (formerly owned by DML) is now part of the Babcock Marine Division of the Babcock International Group PLC.

Fractional superyacht ownership: the Monocle figures

Will the economic crisis change the ownership paterns?

According to Dr Simkowitz, Director of Operations at Monocle Fractional Yachts, people who "purchase $10 million yachts a few years ago are now looking for a way to get a return on their investment".

Dr Simkowitz adds that "...fractional ownership makes more sense in this economy. The costs of boats, gas and operating expenses have increased which makes sharing quite appealing. A yacht is not like a car or a computer that you use every day. Most owners only use their boats four to six weeks a year - so why not split it up and get some money back ?..."

Although the following information mostly reflects an American perspective, check out the sole ownership/fractional ownership fiigures provided by Monocle yachts.

Ownership paterns
Sole Ownership
Total purchase price: $6M
Annual Operating Expenses $400,000
Nbr of staterooms: 4
Destinations: Caribbean, New England (blog editor: for a US owner...)
Actual annual use: 4 weeks
Pride of ownership: all
Aggravation: all

Fractional Ownership
Total purchase price: $600,000
Annual Operating Expenses: $40,000
Nbr of staterooms: 4
Destinations: World
Actual annual use: 4 weeks
Pride of ownership: all
Aggravation: no

Superyacht market: an American superyacht crisis ?

Following our previous post about the personal paper loss of the Russian oligarchs , Vanity Fair has also released an interesting article: The Stock Market’s 25 Biggest Losers.

However, no relevant superyacht sales information was released after the Fort Lauderdale Boat Show...and Warren Buffet never bought any yacht.

Superyacht infrastructure: Marina Villanova sells 20 per cent of moorings

Click on the map to enlarge


Aerial view of the marina


Click to enlarge

The marina Villanova located near Sitges, Spain, has sold 20 per cent of its 76 moorings from 20m-60m (66ft-197ft) during its first year of sales despite the dowturn of the economy.

The new marina, which is expected be fully operational by the start of next year offers seven 60 x 15m superyacht berths although 75 per cent have already been sold.

Prices range indication
20 x 6m: 265,000 euros approx.
30 x 9m: 550,000 euros approx.
40 x 10: 1,000,000 euros approx.
45 x 12 m: 1, 370,000 euros approx.
50 x 13 m: 1,700,000 euros approx.
60 x 15 m: 3,385,000 euros approx.

Contact us for more information

Considering the current price of the berths on the Cote d'Azur, and the fact that the Spanish lease runs up to 2035, it has become a real bargain for international investors.

At the same time, Island Global Yachting, one of the world’s premier owners, developers and managers of luxury marinas and yachting lifestyle destinations, has released details of a 4% recent staff reductions (4% of their 800 strong global workforce...

ISA shipyard: credit line agreement signed for 57 million euro

ISA 140 project

UniCredit Corporate Banking and International Shipyards Ancona: credit line agreement signed for 57 million euro.

A pool of banks led by UniCredit Corporate Banking has provided a credit line of 57 million euro to support development plans for a super-yacht building yard.

Verona, International Shipyards Ancona, which specialises in the design, building and management of luxury super-yachts, with backing from the Yachting Investors Group, has recently signed an accord for a medium term structured credit line of 57 million Euro.

UniCredit Corporate Banking has played the role of mandated lead arranger, organising the syndication process that has seen the pool involvement of six other banks, namely: Banca MB, Banca Antonveneta, Banca Carim, Banca Marche, BPVI and BPA.
Two credit lines will be opened, both extending over a five year term.
The first- cash- is to support the circulating asset requirements of the company, while the second- guaranteed- is aimed at securing cash advances of customers.

ISA is a company from the Marches region of Italy that deals in excellence, employs more than 160 people and has turned over about 70 million euro in 2008 with volumes of over 100 million forecast for 2009.
Its EBITDA target is from 15% to 20% and it is one of the world’s top 15 companies in motor yacht building for the 40 to 80 metre category.

This structured credit line provides the company with a flexible financial instrument capable of meeting all of the financial needs that characterise the world of custom super yacht production and will speed up the growth process of the Ancona yard, which has a portfolio of orders due for delivery in 2011 - 2012.

The credit agreement is a further example of UniCredit Corporate’s notable involvement in serious industrial development projects, on the one hand, and its faith in the growth strategy of this prestigious shipyard on the other.

The new shareholders (YIG of London acquired 80% of the yard at the end of 2006, with the management holds the remaining 20%) have worked out a development plan by which the shipyard will focus on full custom super yachts, the segment most definitely with the highest current growth rate.

The development plan includes a strengthening of the management team with the appointment of a new CEO and a new CFO, as well as a reorganisation of the company to achieve better focus on time, cost and quality objectives.

The financial operation put into effect by the Company Finance team and the Ancona branch of UniCredit Corporate Banking, a part of Mercato Italia Centro/Sud headed by Antonio Muto, once again shows how UniCredit’s corporate bank is able, even in uncertain times, to act as a special partner for locally based companies that have a desire to implement suitably structured growth plans.

ISA/YIG turned to the Rome firm of Ughi&Nunziante for its legal advice, while UniCredit Corporate Banking and the other banks in the pool were advised by K-Legal of Bologna.

Superyacht marketing:

Yachtpanorama is an interesting project launched by photographers Hans von Weissenfluh and Thomas Kruege who live in Italy.

The project aims to provide high resolution spherical panorama imaging and interior photography for the yacht industry and charter business, their business.

Discover what panorama pictures can bring to the yachting marketing by browsing their website Yachtpanorama

Superyacht market: price reduction vs yacht valuation

Tough time for the yacht brokers...or for the yacht owners?

"Owner has reduced asking price by €9,500,000 to €24,500,000 for a limited period of 30 days for any buyer that can complete the purchase within a 30 day time frame"
Email received today from a large yacht brokerage company

Superyacht market: Top 5 reasons to buy a yacht now

You have worked hard, is'nt it time to enjoy relaxing on your yacht now?

We compiled the top 5 reasons to buy a yacht :

1. Cash is king
   Following the credit crunch, potential buyers with plenty of cash can negotiate the price on second hand yachts as well as on new construction project because, for owners, it means quick sale and no suspensive clause.
   
   
2. It is a buyer market
   There are many boats officially (and non officially) for sale on the market at the moment.
   Some owners really wants their boats sold now because of a new construction project coming soon for example.
   
   
3. A sound investment ?
   "If you bought a yacht or a townhouse for $300 million US$ (and you're losing in Russia), you still have those assets even if you have to sell them at a fire sale"
   Aurel Braun - Professor of Political Science
   
   
4. Fuel price vs consumption issue
   Oil prices closed below $55 a barrel yesterday
   
   
5. Pleasure
   Yachting remains one of the more authentic (and comfortable) experience.
   
   

Superyacht picture of the day: Lurssen "Vive la vie"

Click to enlarge

Spotted in the Vieux Port in Cannes, this massive and brand new 60m superyacht was built by Lurssen and was designed by famous architect Espen Oeino.

Project name: Bounty Hunter

Superyacht concept: Vitruvius project, the end of the wedding cakes

"Philippe Briand, designer and creator of the Vitruvius concept, deliberately drew inspiration from the hydrodynamic rules of sailing yacht hulls, whose lines, distribution of volumes and weights are optimized in order to reach the highest efficiency"






Pictures by Perini Navi

OFFICIAL PRESS RELEASE

October 16th, 2008
Hull turning operations completed for Picchiotti-Vitruvius' first motor yacht C. 2134.
The 50m aluminium motor yacht is currently under construction at the Perini Navi Group shipyards in La Spezia.

The 50m aluminium hull for the first motor yacht in the Vitruvius series – code name C.2134 – was turned upright yesterday at the Cantieri Navali Beconcini premises, the Perini Navi Group facility in La Spezia.

The difficult operation was successfully completed in front of the shipyard workers and the Group management.

The metalwork on the hull blocks was executed using the overturned construction technique, a manufacturing method which allows for greater precision in all hull sheet welding and finishing activities, an important aspect in the construction of yachts with complex shapes.

Last Thursday the hull, which had been removed from the shed the previous day, was raised by powerful cranes and was subsequently turned.
During the different stages in the aerial handling of the hull it was possible to see in great detail the design and style peculiarities of this innovative motor yacht series: extremely streamlined features and rake of the stem.

Philippe Briand, designer and creator of the Vitruvius concept, deliberately drew inspiration from the hydrodynamic rules of sailing yacht hulls, whose lines, distribution of volumes and weights are optimized in order to reach the highest efficiency.

All motor yachts in the Vitruvius-Picchiotti series feature hulls able to minimize drag thus reducing fuel consumption, with close to 50% energy savings compared to motor yachts in a similar range currently available on the market.

C.2143 is an Explorer, that is a vessel conceived for long crossings.
Once completed, its displacement will be optimized at 430 tons, with a range of app. 4,500nm at a cruising speed of 12 knots.
Delivery is expected for spring 2010.

Perini Navi recently announced the sale of a second Vitruvius unit, a 55m steel Explorer classified ICE CLASS for navigation in Arctic waters. Delivery of the 55m will take place in 2011.

According to Giancarlo Ragnetti, CEO of the Perini Navi Group: “the motor yachts in the Vitruvius® series mark the return of the Picchiotti brand in the motor yacht industry. With two units sold and currently under construction, the Vitruvius® project is the crowning achievement in the product differentiation strategy pursued by the Perini Navi Group.

Today we can boast two important product brands -Perini Navi for sailing yachts, Picchiotti for motor yachts- and a strong production activity, spread through three different premises: Viareggio, Istanbul and La Spezia, which enable us to build up to 4 sailing yacht units and 2 motor yacht units per year”.





SPECIFICATION
Length overall: 164 ft / 50
Waterline length: 161 ft / 49 m
Beam: 31 ft / 9.5 m
Draught: 8 ft / 2.40 m
Hull: Alluminium
Superstructure: Alluminium
Maximum displacement: 430 t
Engines: 2 x 970 kW CAT C32dita
Speed at maximum power: 16 kt
Speed at maximum continuous rating: 12 kt
Range: 4,500Nm @ 12 kt
Fuel capacity: 75,000 lt
Fresh water: 17,000 lt
Classification:: ABS Malta Cross + A1 Yachting Service - AMS MCA LY compliant
Interior Design Perini Navi
Naval Architecture: Briand Yacht Design - Design: Vitruvius Ltd.
Builder: Picchiotti, Perini Navi Group - Viareggio, Italy

Superyacht brokerage: Yacht deal failure results in order to pay $525,000

Here is an interesting story published by The Vancouver Sun:
Yacht deal failure results in order to pay $525,000, seller of vessel was not given opportunity to complete 10-day sea trial

Tuesday, November 04, 2008

"David Ritchie, one of the founders of Vancouver-based Ritchie Brothers Auctioneers, has been ordered to pay $525,000 for breach of an agreement involving a $100-million yacht he bought two years ago.

The problem arose because the seller of the yacht -- who planned to build three such vessels and sell two -- wanted to take the brand-new vessel on a Mediterranean cruise to check it out before having the others built.

But after the delivery of the yacht, called the Apoise, in late April 2006, Ritchie refused to allow the seller to exercise his cruise rights.

As a result, the seller, Warren E. Halle, began legal action in B.C. Supreme Court for damages for breach of agreement.

Ritchie, who paid 65 million Euros -- about $96 million Cdn -- for the yacht, filed a counterclaim to Halle's action, alleging deficiencies in the yacht's quality.
He was disappointed on delivery of the 67-metre vessel that the loose furniture provided with the Apoise was not of superior quality and did not meet the specifications.

He also alleged there were deficiencies in the wheelhouse doors and the helicopter pad, which had to be fixed at additional expense.

In a judgment released Monday, Justice Bruce Butler dismissed the counterclaim while awarding Halle $525,000 for Ritchie's breach of obligation to provide cruise rights.
Halle, who initially wanted a "superyacht," developed a plan to have three yachts built over five years in Germany by Lürssen, one of the most prestigious builders of superyachts.
He planned to sell the first two and use the profit to reduce his cost of acquiring the third.

Ritchie bought the first yacht, with the agreement that Halle wanted a 10-day sea trial -- the judgment calls it a test drive -- in the Mediterranean during the summer of 2006 so he could determine whether he needed to make refinements to the plans for the next two vessels.

Ritchie was among three brothers who founded Ritchie Bros. Auctioneers in Kelowna 50 years ago.
The company, which went public in 1998, now is the world's largest auctioneer of industrial equipment, with more than 100 offices around the world.

Last year, the company auctioned more than $3 billion US worth of goods, including $600 million over the Internet."
© The Vancouver Sun 2008

The 67m superyacht Apoise built by Lurssen shipyard in 2006 was for sale with Moran Yachts for euros 65,000,000

Superyacht humor: the new Tiger Woods superyacht

Published on The happy Carpenter

Superyacht buzz: Merill Stevens to close yacht sales division

Merrill-Stevens Yachts, the well known american yachting company that provides services including full service shipyard, brokerage as well as charter will close its yacht sales division in Fort Lauderdale. (TBC)

Thought of the day: Yachting vs Stock exchange

"If you bought a yacht or a townhouse for $300 million US$ (and you're losing in Russia), you still have those assets even if you have to sell them at a fire sale"
Aurel Braun
Professor of Political Science - University of Toronto

Superyacht market trends: what to do before the thunderstorm...

Aelbert Cuyp 1640-1645 -Thunderstorm over Dordrecht

About the luxury goods...
A recent article published by the Wealth Report reported that "the Lamborghini Orange County–which typically sold 10% of the world’s annual production of Lamborghinis and counted NBA stars Kobe Bryant and Dennis Rodman as clients–has shut its doors."
The same goes for luxury accomodation and luxury travels.

About the clients...
Meanwhile, the Russia Profile website explains that "Just like ordinary citizens, Russia’s oligarchs have so far been unable to escape the tide of the global financial crisis. Having found themselves owing billions of dollars in loan payments, they are now turning to the government for help, willing to transfer ownership of parts of their businesses or even the firms in their entirety to avoid total bankruptcy."

In terms of figures, Bloomberg estimates that in the last two months, Russia’s 25 richest people (Roman Abramovich and Oleg Deripaska among them) lost no less than $230 billion due to the financial crisis. Many Russian oligarchs are also the proud owners of the biggest superyachts like A or Pelorus.

About the superyacht market...
According to a famous website dedicated to the superyacht charter business, "there are a fair number of boats that still have availability for Christmas charters which is an unusual situation this late in the season".

Most of the biggest yachting companies organise brainstormig meetings to grow their margins...or simply to keep their existing clients from looking elsewhere.

Time will tell...