One of several anomalies that were present in the yachting market shortly before the 2008 crisis, yacht flipping had rapidly gained momentum before disappearing within weeks. Now, the trend is starting to reappear on a larger class of vessels.
Demand was so strong back in 2006-2007, that an already built superyacht was selling at a premium over a newbuild as clients had to wait to get the newer yacht. Exploiting the arbitrage opportunity, a portion of UHNWIs started ordering yachts and selling them before or shortly after they hit the water to a cohort of impatient buyers.
Some realised this method could yield even greater results if ordering multiple yachts at the same time from a shipyard to gain volume discounts. Perhaps the most noticeable of these projects was one led by real estate developer Warren E Halle.
In 2003, the American entrepreneur ordered a 67-meter Lurssen codenamed Project Marlin, now named Apoise, which he sold in 2006 for €65 million to Canadian entrepreneur David Ritchie. The year prior, he had ordered another 2 yachts of similar size, Project Shark and Project Nemo, both for €48 million a piece. In 2008, he sold Project Nemo for €71.500.000, with her new owner renaming her to St Nicholas.
The 3rd yacht, Project Shark, became known as Martha Ann, which Warren Halle kept for his personal use. Stretching over 70-meters the yacht had a standard 6-cabin layout and an exterior by Espen Oeino. Halle ultimately sold the yacht in early 2019 at an asking price of $79 million, with her owner renaming the yacht to Horizons III.
Shortly after the completion of Halle's 3 Lurssens, yacht flipping was widely considered to be extinct with demand for brokerage yachts falling well below its past levels and failing to recover to pre-crisis levels to this day. Amongst megayachts, the trend is, however, starting to reappear within the past quarters.
Graeme Hart, New Zealand's richest man, placed an order for the 107-meter Ulysses in 2013, at Kleven, a commercial shipyard, with designers at the time saying it was picked thanks to its quality standards, delivery times and price point. Later in November 2014, Hart placed an order for a larger, 116-meter version of Ulysses.
Amongst Ulysses's key features are a 21m tender, lifted by specially designed cranes onto the foredeck, an 11m x 5m swimming pool, a large jacuzzi, a sauna, a gym and a massage room. Listed for sale shortly following her delivery in 2016, the yacht was ultimately sold in 2017 at an asking price of €155 million. The 116-meter Ulysses was sold in 2019 at an undisclosed price.
Whilst Halle's and Hart's projects differ in size, it could be argued that the 70-meters a decade ago rivalled in standing today's 100-meter yachts. The entry barrier to the world's largest 100 yacht list has indeed been increased from 65 to 85 meters. This could make yacht flipping one of several signs in yachting that a recession could be coming.
Royal Huisman showcases a new lightweight 46m high-performance cruiser sloop: “Nauta Reichel Pugh 151”. Nauta Design produced the exterior and interior styling, Reichel/Pugh for the yacht’s naval architecture, Rondal did carbon Panamax rig, and Royal Huisman provided their most-qualified engineering and construction skills for the optimal end result. Royal Huisman Project 405’s lightweight aluminium and carbon composite construction will present formidable competition to existing carbon yachts, whilst combining comfort with the low sound levels of aluminium yachts.The team worked with “intelligent lock-down” measures implemented in the Netherlands since mid-March 2020 and promptly adopted by Royal Huisman. These measures allow the shipyard team to continue working in strict observance of the regulations, such as the continuous monitoring of its workers’ health situation and etc.According to Jan Timmerman, CEO Royal Huisman: “It is truly an honour to work with the owners and this great expert team of designers to realize their lightweight superyacht. The team of Royal Huisman is proud that the owners and their team have selected us for this innovative lightweight construction which was cleverly developed by our in-house R&D team, backed up with over 55 years of experience with aluminium construction. This latest superyacht order confirms Royal Huisman’s adage “If you can DREAM it, we can BUILD it!”Royal Huisman Project 405 is scheduled to be delivered in 2022.
May 29, 2020
34m SX112 is the flagship of the SX crossover line by Sanlorenzo that proposes a new way of living on the sea: the barriers on board are eliminated, and the boat opens to the outside, in a close relationship with the marine context.The project design of the external lines produced by Bernardo Zuccon of Studio Zuccon International Project and interiors by Piero Lissoni, art director of the company since 2018.The key features of the project are the new stern zone which undoubtedly represents the yacht’s most iconic area. Conceived as a spacious internal beach area, it is directly connected to the outside, allowing the yachtsman to enjoy these spaces in a novel way.
May 29, 2020
Superyacht design studio Bannenberg & Rowell have released a new superyacht concept, the 43-metre Estrade. Bannenberg & Rowell describe this yacht to be designed for the soul, for relaxed and healthy living and, above all, to connect with the environment. The yacht can accommodate up to 10 guests and nine crew on board and ample space for toys.Key features include the beach club aft that folds out on both sides. Elsewhere, the cantilevered sunning deck overlooks the beach club, ensuring “positively no FOMO”, the studio said. Elsewhere, Estrade features a sundeck with a spa pool. The jet skis and tenders meanwhile are stored at the bow.
May 28, 2020
Project Mana, the third hull in Dutch yard Mulder's ThirtySix series, has been launched and ready to begin sea trials at the North Sea.ThirtySix features a bespoke modern exterior with sleek aluminium construction and a continuous window line which culminates in a contemporary plumb bow. The four-cabin version accommodates eight guests on board. Five spacious cabins onboard accommodate up to ten guests. Both the four and five-cabin layout have Pullman beds in the forward guest cabins.The saloon, dining room and bar area are located on the main deck, with floor to ceiling windows providing panoramic views. The dining experience is enhanced by the addition of a folding side balcony, which brings seascape panoramas right to the table.The sun deck above the aft deck and main saloon include generous seating, lots of sun pads, a whirlpool bathtub with room for eight and a comfy dining place.The design features the Van Oossanen patented Fast Displacement Hull Form (FDHF) to ensure comfortable sailing and fuel economy at all speeds. Twin 847 kW engines will ensure a maximum speed of 16.8 knots. The fuel consumption at economic cruising speed of 11 knots is less than 80 litres per hour.
May 28, 2020
Horizon Yachts has begun construction of a 32m customised CC98 yacht. Horizon Custom Collection 98 is fourth Horizon vessel for the experienced Australian owner, who requested specific – and somewhat challenging – details including accommodations for a helicopter as well as a submarine.The new owner requested that his new yacht would feature an exterior style similar to the Horizon E Series yachts. Thus, this new CC98 has a unique exterior profile, with expansive windows and a spacious interior within a 23’ 6” beam.To accommodate a touch-and-go helipad, the entire superstructure of this new vessel will be constructed of carbon fibre composite for strength and structural integrity for the helipad. Also, this yacht features a telescoping mast and radar arch to navigate the low bridges in Australia.The yacht can accommodate up to five guests in five staterooms including a full-beam, on-deck master suite. A large galley area is positioned aft on the main deck to facilitate dining either on the aft deck or at the interior dining table. Relaxation and entertaining areas are found throughout and the foredeck has been designed to accommodate a jacuzzi and large sun pad.The yacht has commercial-grade 10V 2000 series MTU engines have been chosen. The ZF trailing gearboxes are designed for full redundancy and to enable the ability to run on one motor, which reduces fuel burn and engine hours. Lithium-ion battery packs will also be installed to offset the house functions such as air conditioning and general electricity. The fuel capacity is 24,600l.The yacht is on schedule to be delivered to her owner in early 2021.
May 27, 2020