What are the impacting factors on second-hand sales?
SuperyachtNews considers whether a yacht built by a shipyard that has since closed down impacts her saleability…
While the new-build market may be somewhat unpredictable at present due to the economic uncertainty of 2020, now is the time to pay attention to the second-hand sales market. In this article, SuperyachtNews considers whether a yacht built by a shipyard that has since closed-down has any impact on her saleability...
“There is always a strong market, both in sales and charter, for yachts such as 36.5m Bagheera [currently for sale exclusively with Y.CO], which manage to incorporate the features of much larger yachts and have a range of versatile entertainment spaces on board. There are not many yachts on the brokerage market right now in this size range, if any, that can offer an experience like Bagheera can,” began Will Yates, Yacht Sales at Y.CO.
Y.CO has recently announced that 36.5m Bagheera is now for sale exclusively with their London based yacht brokerage, at the price of 4,800,000 EUR VAT paid. Reaching a top speed of 28 knots, she is a superyacht built for owners with a need for speed and, more notably, she’s the only Palmer Johnson 120 to have a Jacuzzi pool.
“While Bagheera has only been on the charter market more recently, she has the makings of a fantastic charter yacht and has proven to be very popular so far. She has just completed her Lloyd’s 15-year class survey, and having also just had a full exterior repaint, all of the major periodic maintenance jobs have now been completed,” added Yates.
According to Yates, the technical spaces on the yacht were already in superb condition prior to the refit - a vital component of a successful second-hand sale. “The main engines only have 2,700 hours on them, so the goal of the refit was to build around this already strong foundation. The owner is an incredibly experienced yachtsman and a stickler for detail, and this really shows in the work undertaken during the refit and the condition she is now presented in,” Yates clarified.
According to data provided by The Superyacht Agency, in the case of Palmer Johnson, its closure in 2015 did little to affect the sale of yachts by the shipyard. In fact, in 2017, six vessels were sold with a total sales fee of €61.4 million, compared to four Palmer Johnson yachts sold in 2015 with a total sales fee of €43.4 million.
This is reassuring for any current seller with listing a Palmer Johnson on the market. When compared with Trinity Yachts for example, the Gulfport-based yard closed in the same year, but has not seen sales figures similar to 2015 since. However, this may well be in relation to price point, as although six Palmer Johnson’s were sold in 2018, their total sales fee came to €21.5 million, compared to only five Trinity Yachts being sold in 2018 but with a total sales fee of €96.5 million.
When looking at second-hand vessels from other now-defunct yards, such as Holland Jachtbouw, the results show a similar outcome, with figures having fairly little impact from the closure/takeover of the shipyard. What this affirms is that, as Yates’ outlined in the case of Bagheera, it is a vessel’s maintenance schedule that defines its performance on the sales market.
Bagheera can accommodate up to nine guests in four cabins, and features several relaxation spaces on deck. With very low engine hours and having just completed her 15-year Lloyd's Class survey, Bagheera is in fantastic condition for a second-hand sale.
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