Biggest yacht in China joins Fraser fleet
At 88m and 3,500 GT 'Illusion' is the largest yacht by volume to be constructed in China. But her build has as much to say about Chinese yards' power to compete in a competitive market as confidence in the emergence of the Chinese yacht owner.…
“We are building the best boat ever built in China,” said Jan Jaap Minnema, broker at Fraser, handling the sale of the largest yacht by volume ever to be constructed in China.
The 88m yacht Illusion, now two years into her construction at CIMC Raffles yard, has several standout elements beyond her sheer size, which at 3,500GT makes her the largest China builds as opposed to overall length. She is also one of the largest on-spec builds globally, with some of the most prolific European designers involved in her build, including RMD for exterior styling and Azure Naval for naval architecture.
“They (CIMC Raffles) want to make a statement about the yard’s abilities, as the first yacht to be built under new ownership, it is their poster yacht. So the finest in everything has been chosen; it's not a cheap thing, they mean business," explained Minnema.
The comments are backed up by a closer look at Illusion’s credentials. As well as Rolls Royce engines, interiors are designed by Sander Sinot, the name behind 78m Feadship, Musashi, built for Larry Ellison. By pairing up with famous European brands, and introducing a distinctly Chinese flavoured interior design – terracotta warriors are seen on the marbled main deck – the yard is making a bold statement about the benefits and possibilities of building in China.
“With the people involved and the company to fund it, we can build cheaper than in Europe, but it’s not all about the price,” said Minnema.
Illusion is priced competitively for a yacht of her size, but Fraser are keen for the price not to be bandied about, presumably not to detract from her aesthetics and to combat the notion Chinese is synonymous with cheap.
The fact such a huge yacht is being built on-spec might raise some eyebrows, but considering her journey to construction and the might of the company building it, it is not so surprising.
The project started out as a personal yacht for Raffles’ owner in 2006, but was stalled owing to financial problems. She was then reinstated in 2010, two years after Raffles was acquired by offshore fabricator China International Marine Containers (CIMC) in 2008. With CIMC’s capacity for large scale construction – it has the world’s largest gantry crane with a lifting capacity of 20,000 tonnes - the construction is arguably a side project for a company listed at 15.73 Billion yuan on the Shenzhen stock exchange. It is a risk it can afford to make:
“CIMC Raffles are not scared, it’s a calculated risk. It started out as a nice, rich owner who has loved yachting for the last 30 years, and it’s a stock exchange company that thinks, yes we can do it,” said Minnema.
The advantages of a heavyweight company in the world's most stable economy entering the superyacht market and the race for the Chinese yacht client, are considerable. With CIMC's links to Chinese banks for ship financing, there is the possibility of financing for the buyer of Illusion. Contrastingly, European yards have become increasingly reluctant to offer this.
Building in China also means no import duties. Luxury items imported into China are subject to three taxes - customs tariffs of 4.4% up to 60%, value-added tax (VAT) of 17% and consumption tax of up to 30%, so avoiding this, coupled with a favourable asking price, could well place Illusion's prospects for sale at a unique advantage.
But whether or not sale of an on spec 88m yacht - twice the size of Feadship's Blue Sky sold to its first mainland Chinese owner – is asking too much from the country famously slow to embrace yachting, is perhaps missing the point. Catching headlines as the largest yacht made in China is an excellent marketing exercise for building in the continent and making a statement about CIMC Raffles' first serious entry into superyacht building.
Illusion is scheduled for launch in mid 2015 and will be on display at the Fraser yachts stand E17 at the Hainan Rendez-Vous from 30 March to 2 April.
The 88m yacht Illusion, now two years into her construction at CIMC Raffles yard, has several standout elements beyond her sheer size, which at 3,500GT makes her the largest China builds as opposed to overall length. She is also one of the largest on-spec builds globally, with some of the most prolific European designers involved in her build, including RMD for exterior styling and Azure Naval for naval architecture.
“They (CIMC Raffles) want to make a statement about the yard’s abilities, as the first yacht to be built under new ownership, it is their poster yacht. So the finest in everything has been chosen; it's not a cheap thing, they mean business," explained Minnema.
The comments are backed up by a closer look at Illusion’s credentials. As well as Rolls Royce engines, interiors are designed by Sander Sinot, the name behind 78m Feadship, Musashi, built for Larry Ellison. By pairing up with famous European brands, and introducing a distinctly Chinese flavoured interior design – terracotta warriors are seen on the marbled main deck – the yard is making a bold statement about the benefits and possibilities of building in China.
“With the people involved and the company to fund it, we can build cheaper than in Europe, but it’s not all about the price,” said Minnema.
Interior design of Illusion has a distinctly Chinese aspect
Illusion is priced competitively for a yacht of her size, but Fraser are keen for the price not to be bandied about, presumably not to detract from her aesthetics and to combat the notion Chinese is synonymous with cheap.
The fact such a huge yacht is being built on-spec might raise some eyebrows, but considering her journey to construction and the might of the company building it, it is not so surprising.
Illusion in build at CIMC Raffles, China
The project started out as a personal yacht for Raffles’ owner in 2006, but was stalled owing to financial problems. She was then reinstated in 2010, two years after Raffles was acquired by offshore fabricator China International Marine Containers (CIMC) in 2008. With CIMC’s capacity for large scale construction – it has the world’s largest gantry crane with a lifting capacity of 20,000 tonnes - the construction is arguably a side project for a company listed at 15.73 Billion yuan on the Shenzhen stock exchange. It is a risk it can afford to make:
“CIMC Raffles are not scared, it’s a calculated risk. It started out as a nice, rich owner who has loved yachting for the last 30 years, and it’s a stock exchange company that thinks, yes we can do it,” said Minnema.
Illusion will be completed for launch in mid 2015
The advantages of a heavyweight company in the world's most stable economy entering the superyacht market and the race for the Chinese yacht client, are considerable. With CIMC's links to Chinese banks for ship financing, there is the possibility of financing for the buyer of Illusion. Contrastingly, European yards have become increasingly reluctant to offer this.
Building in China also means no import duties. Luxury items imported into China are subject to three taxes - customs tariffs of 4.4% up to 60%, value-added tax (VAT) of 17% and consumption tax of up to 30%, so avoiding this, coupled with a favourable asking price, could well place Illusion's prospects for sale at a unique advantage.
88m Illusion as she will look on completion
But whether or not sale of an on spec 88m yacht - twice the size of Feadship's Blue Sky sold to its first mainland Chinese owner – is asking too much from the country famously slow to embrace yachting, is perhaps missing the point. Catching headlines as the largest yacht made in China is an excellent marketing exercise for building in the continent and making a statement about CIMC Raffles' first serious entry into superyacht building.
Illusion is scheduled for launch in mid 2015 and will be on display at the Fraser yachts stand E17 at the Hainan Rendez-Vous from 30 March to 2 April.
Owner's stateroom on board Illusion
Dining room
Illusion is registered under the Belize flag. It is a popular flag for commercial ships, so makes sense for CIMC Raffles to choose it. IYC, which represents the flag, say requirements for the flag are even more demanding in some sections than those issued by the MCA or other flags. Her size also makes her likely to be MLC compliant ahead of August:
"It is still before the August deadline, so technically they can forego any required minimum size of the spaces. But at 88m, she should be close to MLC compliance anyway," said Capt. Jake DesVergers, Chief Surveyor at IYB.
Profile linksIllusion is registered under the Belize flag. It is a popular flag for commercial ships, so makes sense for CIMC Raffles to choose it. IYC, which represents the flag, say requirements for the flag are even more demanding in some sections than those issued by the MCA or other flags. Her size also makes her likely to be MLC compliant ahead of August:
"It is still before the August deadline, so technically they can forego any required minimum size of the spaces. But at 88m, she should be close to MLC compliance anyway," said Capt. Jake DesVergers, Chief Surveyor at IYB.
China International Marine Containers (CIMC) Raffles
Rainsford Mann Design Ltd (RMD Marine)
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