"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