$1bn Triple Deuce will become the world’s biggest superyacht
Edward Leigh, head of yachting, and Grant Atchison, head of aviation at Equiom (Isle of Man), also discuss the role of the middleman in the internet age.
What is the world’s most expensive superyacht?
Triple Deuce will be the world’s biggest superyacht at 222 metres when she is launched in spring 2018. She will also be the most expensive private superyacht ever built, at a cost of a reported $1 billion.
How much do your clients spend on superyachts and jets?
Our clients spend anything from several million to several hundred million pounds buying their prized superyacht. Yachting is a passion for many owners and an integral part of their lifestyle, although their budgets can vary significantly.
As for the jets, we represent clients that own aircraft valued between £450,000 and USD £98,000,000.
How did the internet change buying and booking habits?
The internet certainly makes it easier for buyers to view their prospective superyacht purchase or charter. However, there will always be a need for sales and charter brokers, as the superyacht industry is based upon relationships and brokers help bridge the gap between internet dream and reality.
This applies to the aviation industry, too. The internet has certainly helped spread the word, raise the profile of various intermediaries and create accessibility for them. But, in the end of the day, aviation is a personable business, and face-to-face meetings are the best way for deals to happen.
Give us three tips for the UHNW clients who wish to buy or invest in superyachts or jets.
When preparing to buy a yacht, do your research and compare what the different brands offer, then take your time and charter one first. Also, consult VAT and ownership structuring with experts as fiscal considerations increasingly play a large part in the decision-making process.
What should be the UHNW clients aware of when purchasing a superyacht or a jet?
Following the purchase of a yacht, expect to spend about ten percent of its initial price on annual operating costs. Of this, approximately one third will be utilised for the crew payroll, a further third for maintenance and the balance for fuel, berthing charges and insurance.
These costs can be defrayed through chartering, but this rarely makes a profit for owners. By buying well from the outset, owners can mitigate their losses when they come to sell.
Tell us about the latest trends in the yachting and aviation sector.
The global fleet of superyachts totals more than 4,800 vessels and continues to grow between three to five percent per annum. It is still very much a buyer’s market, due to the global economic slowdown and, consequently, owners can negotiate significant discounts on both new and pre-owned superyachts. What is most evident is the increase in the overall length of new builds, most notably for vessels greater than 100 metres.
In aviation, the previously fast-growing CIS has declined in the long-term, and weaker economic prospects in Southern and Eastern Europe will continue to subdue business aviation in these regions. In Western Europe, buoyed by closer connections to the rebounding North American market, the recovery should be faster.