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Market Intel 2015
Market Intel 2015

Market Intel 2015

Monday, 14th September 2015

THE MARKET

Despite a couple of hiccups we have continued to see encouraging growth in the last six months: there have been 221 sales since 1st March 2015. As previously mentioned, the flight to quality continues with some substantial sales being made extremely quickly. Two of these were AURORA – 60.97m, 2004 (refit 2010), Lurssen asking EUR 49,750,000 which was on the market for only 103 days, and STEP ONE – 55m, 2012, Amels asking EUR 37,000,000 which was on the market for only 91 days.

The above two sales are prime examples of an emerging tendency to list more realistic asking prices that are closer to what the yachts actually sell for. There are several reasons for this:

• Confidence in the market due to an increased deal frequency – the market liquidity coupled with the potential buyers / owners and their brokers being far better informed of the market conditions.

• Conducting concrete market analysis that in turn is being implemented to make reasoned offers and counter offers (negating the somewhat unrealistic asking prices we have had in the past).

• And gone are the days when one could price a yacht in the hope that an ill-informed buyer would come along and pay the inflated asking price.

Unfortunately, an inflated pricing practice still continues in certain areas of our industry, though all it does is give the impression that the seller is not realistic. Should you require the analysis of a yacht’s true value or if you wish to discuss marketing strategy in more detail, please do not hesitate to get in touch.

As was anticipated, a void has appeared in the market for yachts that are 3 years old or less – this has been created by the slowing down (and, in some cases, complete halt) of yacht building in the years of uncertainty following the global recession.

From a buyer’s perspective, history has repeated itself and as we have moved out of recession new high net worth individuals have emerged. Having taken advantage of the global market’s resurgence back to health, a new breed of yacht enthusiast is joining the ranks of the scores of brilliant tech entrepreneurs who have also emerged over the past decade. These individuals have chartered yachts over the past few years and, having found a taste for it, are beginning the conversion to yacht ownership.

As is typical of the modern world in which we find ourselves, demand has escalated and there is very much a ‘now now now’ culture. The brokerage market cannot accommodate this demand and – since it has now certainly outstripped supply when it comes to the ‘branded,’ sub 3-year market segment – we need to look to the shipyards for solutions…

BUYING IN BUILD’ YACHTS

Historically this has been a very interesting space for the industry – pre-recession, an individual could hope to commence the construction of a yacht with a view to selling it at a substantial premium leading up to the launch date, thus treating the process as an active form of investment. Whilst we are not quite there yet, we are gradually returning to this point.

Some yards cater for this market by building yachts to spec with a view to offering them as an accelerated method by which an individual can own a brand new yacht. Whilst this is a good idea, it can lead to launch delays and additional costs being incurred due to change orders.

Another way that yachts have come up for sale in build recently is for the owners to either decide that they no longer have a requirement for a yacht, or (more likely) that their financial situation changes and owning a yacht is no longer viable. Both these outcomes can represent fantastic deals if handled correctly.

In the past year there have been 15 in build sales, including the 66.25m Feadship Project #809. Her asking price of EUR 80,000,000 was bold but was met by a discerning US client who, making very good use of the strong US Dollar, knew an excellent opportunity when he saw it. Still on course to be delivered in December, this will be one of the top launches of 2015.

Here is a small selection of yachts available for sale in build:

Icon 250 – 78.80m Icon yachts – asking EUR 99,000,000 – Delivery Summer 2017

SKYFALL – 70.00m Sunrise Yachts – asking POA – Delivery 24 months from contract

FB276 – 63.00m Benetti – asking EUR 52,000,000 – Delivery March 2018

ALIDA – 55.00m Heesen asking EUR 37,000,000 – Delivery March 2017

THE FEADSHIP MARKET

The post 2000 Feadship market was almost completely barren until two months ago when two superb Feadships appeared for sale. The renamed, 55.50m, MADSUMMER (ex ISSANA, ex TWIZZLE, ex DRIZZLE) has come back onto the market just over a year after Cecil Wright & Partners sold her. An internal refit has refreshed her and brought her up to date in a more contemporary style – she is a magnificent turnkey opportunity.

A surprise addition to the Feadship sales market is the 46.40m, KISS. The sister ship of the highly acclaimed award winning 2014 COMO, KISS was launched in February this year and I doubt will be on the market for long! Unlike her sister ship, KISS has her top deck enclosed with a further sun deck on top. This entire deck houses an owner’s area and, forward on the main deck (where the master is normally situated) we find a very generous VIP suite.

Worthy of note is the 50.28m, DÉJÀ VU. Launched in 2000, she underwent a large refit in 2012 and has recently had her asking price substantially reduced by over EUR 4,500,000 – this is a very clear indication of a keen seller and there is a deal to be done here.

MADSUMMER

55.00m, 2005 (Refit 2012)
Asking USD 37,500,000

GALLANT LADY
51.20m, 2007 (Refit 2014)
Asking USD 39,000,000

DÉJÀ VU
50.28m, 2000 (Refit 2012)
Asking EUR 17,950,000

KISS
46.60m, 2015
Asking EUR 37,500,000

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