A host of boats are on the market, offered by a select group of brokers whose clients can pay £50m or more for a yacht moored in Monaco or Monte Carlo. There they entertain corporate contacts and throw parties where Hollywood actors rub shoulders with politicians and sports stars.
They include the Ultima III, owned by US investor Ron Perelman, once the world's richest man, who made much of his estimated $11.5bn fortune taking cosmetics manufacturer Revlon private in 1985 and has since bought and sold stakes in comic book publisher Marvel Entertainment Group and film-maker Technicolour.
Yacht broker Edmiston is selling the 190ft boat, which boasts eight "staterooms", accommodation for 16 guests and a Jacuzzi. Perelman has entertained actress Gina Gershon, who played fashion designer Fable in TV series Ugly Betty, and director and producer Penny Marshall on the yacht's lengthy sun deck in recent years, but like many investors, he has seen his wealth fall as the US market plunged. The Dow Jones index of leading shares fell by 33.8% in 2008, its worst performance since 1931.
The Ultima 111 is priced at over €50m (£47.7m) by Edmiston, which is also one of several brokers advertising the Lady Christine, owned by Conservative party donor Irvine Laidlaw. Laidlaw sold his conference business IIR for $1.4bn, and put the 182ft yacht named after his wife on the market last summer with a price tag of €45m. Others on the market include the Phocea, the largest sailing yacht in the world until 2004, which was bought by Mouna Ayoub, a French socialite of Lebanese origin who made a fortune from real estate. Ayoub refitted the boat with opulent oak panelling and handmade furniture from Viscount Linley's London showroom. She bought it 12 years ago from disgraced French politician Bernard Tapie, reportedly funding the $17m (£11.7m) cost by selling a 112-carat diamond bought by her ex-husband following their divorce. The yacht is for sale for an undisclosed price.
Other boats on the market include the Enterprise V, a 167ft yacht with a diving pool and fitness room, which used to be the corporate yacht at marketing company Amway and now belongs to the company's co-founder Richard De Vos, who also owns the Orlando Magic basketball team. It is on the market for $22.5m.
The Maltese Falcon, owned by American venture capitalist Tom Perkins is also for sale. One of the largest privately owned sailing yachts in the world at nearly 290ft, it can be bought for €115m. It has been on the market for months.
The Excellence III, owned by American car dealer Herb Chambers, whose leading top managers at his eponymous chain of showrooms used to be invited on board to watch films in its private cinema, is also for sale though broker Moran Yacht & Shop for an undisclosed sum.
Not every owner is selling because of falling share prices or declining profits. De Vos also owns a smaller yacht, a 130-footer, and Chambers reportedly took possession of a larger boat in July. The Excellence III may simply be surplus to requirements, but like other parts of the luxury goods market, yachts are not immune to the economic slowdown. Last month British yacht-maker Fairline revealed 275 redundancies, a few months after introducing three-day weeks for employees at its manufacturing base in Oundle, Northamptonshire, saying: "The ongoing global financial and economic conditions continue to affect demand for luxury products across many industries and regrettably, Fairline's products are not immune from these effects." It had already shed 90 jobs in September, reducing its workforce to 1,000, but its chief executive Dereck Carter managed to remain upbeat.
Carter said: "The downturn in the market will pass and we anticipate that towards the end of 2009, increased levels of activity are likely to materialise as the market begins to recover and as we bring new models in development to market."
Donald Starkey, the designer behind "giga-yacht" Everest, currently under construction in Fort Lauderdale, Florida, will be hopeful Carter is right. At 656ft, Everest will be longer than two football fields and have five decks serviced by two lifts, a helipad, a submarine and 17 apartments. It is scheduled for completion in 2010, according to the sales prospectus. By that time, the world economy may finally be emerging from a long slump. If not, Everest may be on sale at a discount, although given its $500m price tag, even a 50% reduction would prevent all but the richest buyers making an offer.
Merijn de Waard, founder of website Superyachttimes.com, said: "There are more big boats for sale now. I think there will be a price correction. That is logical because there is less demand."
He added: "In the past, very large yachts have sold quickly because there were a lot of people who wanted a yacht instantly and had the cash to buy them. But many of the shipyards that build these boats have orders until 2012, so they can afford to survive without any new orders for a few years."
source:
http://www.guardian.co.uk/business/2009/jan/04/recession-super-yachts
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