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"
Article published on the website Telegraph.co.uk - 17 November 2008The 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 articleIn 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?
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
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 :- 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.
- 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.
- 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
- Fuel price vs consumption issue
Oil prices closed below $55 a barrel yesterday
- Pleasure
Yachting remains one of the more authentic (and comfortable) experience.
Aelbert Cuyp 1640-1645 -Thunderstorm over DordrechtAbout 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...
"As soon as a recession hits, everyone stows the Lamborghinis, puts the yachts in dry dock, cancels the 5,000-guest reaffirmation-of-vows party in the Temple of Luxor--the one where the Rolling Stones were supposed to helicopter in and play "Street Fighting Man"--and starts driving a Prius and stops smoking Cohibas"
The Strange Case Of The Wallflower Wealthy
Joe Queenan
Forbes
It is said that Roman Abramovich has recently lost £12billion on the Russian stock exchange.
It comes just four days after details emerged of the £200million super-yacht project "Eclipse" Abramovich is having built - set to be the largest private yacht ever constructed.
Many superyachts belongs to Russian oligarchs:
- A: Mr Melnichenko
- Anastasia: Mr Potanin
- Ectasea: Mr Abramovich
- Grand Bleu: Mr Shvidler
- Ice:Mr Kerimov
- Pelorus: Mr Abramovich
- Sussuro: Mr Abramovich
What will be the effect of the recent Russian stock exchange downturn on the superyacht market?
Are the Russian billionaires going to sell their superyachts? 
Source: Bloomberg
Wally steering wheel
According to investors, a mature market is a market that has reached a state of equilibrium marked by the absence of significant growth...or a lack of innovation.
Is the superyacht market a mature market?
For several years now, the yachting press have been reporting record sales & charter activity and stressed the lack of infrastructure as well as the lack of qualified crew.
Meanhwhile, the recent mergers & acquisitions between key players (brokerage companies and shipyards) signal a rising wave of consolidation in the superyacht market. Following the consolidation of the Italian market with key players like Ferretti Group and Azimut Benetti, L Capital acquired Princess yachts and LVMH recently purchased Royal Van Lent. In the Netherlands, the Heesen shipyard has also been sold to an international investment group.
At the same time, superyacht shipyards are growing like mushroom in Turkey and in China.
Will there be any benefit for the buyer/owner?
It is certainly to early to answer this question; however, we thought it could be a good idea to have a look at the jet market.
Founded in 1984 as an independent company, Central Business Jets is sought after by Fortune 500 companies to multi-national firms to individuals for its expertise in client representation of a business jet sale and/or acquisition.
Central Business Jets provides valuable information to educate their clients through their Jetcraft reprt: general market trend, aircraft operating cost, average fuel burnt per hour, Average Total Operating Costs Per Flight Hour...
You can download a sample valuation report here.
In spite of the facts that many superyachts are higly customized goods and that many yacht brokers are affected with paranoid syndrom, we believe that relevant information could drastically benefit to potential purchasers.
click to enlargeThis chart shows the evolution of the asking price of a well known second hand megayacht: guess what is the name of the yacht?
Superyacht Al Mirqab in Palma
“The trouble with yachts is that when business is good, it’s really good. But when it falls, it really crashes.”
Stephen A. Schwarzman co-founder of The Blackstone Group
Tricon team photo - Tricon copyright
Dave Adams, a North Palm Beach entrepreneur, is setting up yacht building venture (Tricon shipyard) in China with former client and investor Christos Livadas.
According to the Palm Beach Post, "Tricon's key advantage is low-cost labor. By building in China, Livadas estimates, Tricon's labor costs will be about 30 percent less than Taiwanese yards and more than 60 percent less than American and European yards"...
>> More information
>> Tricon Marine shipyard
