Commissioned by a Russian billionaire and ultimately delivered to a powerful, Middle Eastern family, the 110-meter Radiant did more than just mezmerize anyone who sees it. Its build and subsequent sale became a breakthrough public case and enlightened many as to the actual costs in building a megayacht and the processes of selling one.
In early 2004, the late Boris Berezovsky, one of Russia's most influential billionaires, set out to build a 110-meter yacht at Lurssen to be called Darius. After some negotiation, Berezovsky decided to build the yacht, which would cost him €148,540,000, which were payable by installments plus interior fitting costs.
Whereas the size and volume of the yacht is impressive, the most fascinating element of Darius' story lies in the fact that due to public litigation that followed, it became actually known, how much does it cost to build a 110 meter superyacht at Lurssen, a figure that had previously only been estimated and hypothesised. Understandably, every project of this scale is different, however, even a range was difficult to obtain at the time.
As the economic crisis hit, Berezovsky was unable to pay his seventh installment of €23,890,421 in May 2008 and decided to put the yacht on the market as a yacht that was still in construction. The Russian billionaire then contacted brokerage firm Edmiston to sell the yacht and a target of €300 million net of commission and fees was set for the sale.
Whereas in today's economy selling a yacht for nearly double its original building cost may seem to be unreasonable, at the time, it was a common occurrence. Yachts that were ready immediately were considered more valuable than those that still had to be built. This led to many speculation builds and an era of yacht flipping that was sunset by an oversupply as of the early 2010s. In the megayacht market this still exists as one would have recently seen with the sale of the 134-meter Serene to a Saudi Prince for an amount higher than building costs by Russian billionaire Yuri Scheffler.
As is common in the yachting sector, Edmiston contacted Merle Wood, another powerful yacht broker, to help them find a buyer for the 110-meter yacht still under construction. In turn, Wood contacted the captain of a yacht owned by the Al Futtaim family for him to offer this deal to his employers. The captain agreed to do this, asking for a €3 million commission should the deal go through.
Whilst such a number may appear unreasonably high for a simple introduction, it is common in the yachting industry, which works mostly on commission, to have every middlemen involved in the transaction get a percentage of the deal. In this case, €3 million would equate to less than one percent of the total, advertised sales price. For the sale of smaller yachts, brokers routinely take a 10% cut of the total amount.
In July 2008, the Al Futtaim family decided to seriously consider a purchase of the yacht, which led to Edmiston meeting with Berezovsky and agreeing on a 2.5% commission if a net price of €300 million was achieved. After visiting the yard, the Al Futtaims, however, decided that they would rather not deal with brokers and that they would rather deal directly with the owner.
In situations with such high sales prices, it is not uncommon for sellers and buyers to want to deal directly with each other as opposed to with brokers and save on fees. When the broker was the one to introduce the client, this becomes, however, more complicated as to how commissions should be given out. A case that the Darius sale set a precedent for.
At the end of August, the Al Futtaim made an offer of €210 million for the purchase of the yacht. After negotiations, the final price went up to €240 million. By October the deal was closed and the €240 million paid. As these negotiations were held directly between the buyer and seller, Berezovsky decided that Edmiston was not entitled to a commission, a point with which the brokerage firm did not agree.
As a result, Edmiston initiated proceedings in UK courts in 2010, through which the details of the construction and sale of Darius became known, shedding a light as to how such processes take place. In July 2010, UK courts ruled that Edmiston was in fact entitled to a commission of €7,2 million, ie 3% of the sales price. An amount, which Berezovsky appealed.
In trying to assess whether a 3% commission was a fair market rate, more interesting evidence from the yacht brokerage world emerged. Berezovsky had also engaged YachtZoo and Royal Oceanic to find buyers for Darius at rates of 3% and 2.5% respectively. It was also disclosed that a commission of 4% was paid for the sale of Pelorus, a sistership to Darius, which sold for $150 million in October 2003.
The proceedings helped clarify for the industry as a whole the effective broker commission on the sale of larger superyachts, as opposed to the common 10% on the sale of regular sized yachts in the sub €10 million range. On the sale of the 78m Princess Mariana, for example, a 4% commission was paid. In the end, the court agreed to a 2.5% commission for Edmiston for a total of €6 million on the sale of Darius.
A close sistership to the 110-meter Pelorus, famously acquired by Roman Abramovich, Berezovsky's former business partner and the 110-meter Ona, built for Alisher Usmanov, Project Darius remains one of the most significant yachts on the water to this date. The series built on this 110 meter platform remains one of the most successful and emblematic for the German shipyard, which has since been able to build even larger yachts.
Few elements are known as to what amenities Darius, or Radiant as it is now named, has on the inside. Exterior photos show a helipad up on the aft of the yacht's fourth deck as well as an extensive lounging area aft of the yacht's third deck. A beach club and swimming platform can also be found aft of Radiant's lower deck.
Historically one of the most influential and powerful Russian oligarchs, the late Boris Berezovsky started his business career selling Soviet-made cars and foreign cars in 1989 after initially working in scientific research. He first built up an equity in Russian car producer, AvtoVAZ and later gained control of ORT Television, one of Russia's most popular television channels. Together with prolific yacht owner, Roman Abramovitch, he acquired a majority position in Sibneft, a Russian oil company, which constituted the bulk of his net worth.
Valued at $3,3 billion by Forbes, Abdulla Al Futtaim is the owner of the Al Futtaim Group, which is operated by his son, Omar. The exclusive distributor of Toyota and Honda cars in the UAE, it also owns the country's largest insurance company, Orient Insurance.
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Gulf Craft is expanding its refit services to cater to its entire fleet, responding to a significant increase in demand. The company is poised to unveil a new refit center in Ajman, UAE, driven by the surging interest in refit services as the superyacht fleet continues to converge in the region. Currently under construction, the facility is slated for completion by mid-2025. Gulf Craft has also announced plans to enhance its Maldives facility over the next three years, as revealed to SuperyachtNews.“With this new facility, we’re not just addressing the growing demand for superyacht services; we’re committed to delivering an exceptional experience for our clients and fostering the development of a premier yachting community in the region,” stated Abeer Alshaali, Deputy Managing Director of the shipyard.The new Gulf Craft Services facility in Ajman, which aims to become partially operational by the end of this year, represents a significant investment in the region's yachting infrastructure. While the shipyard has traditionally provided refit and maintenance for its own fleet, the new facility will be accessible to all yachts.The region presents its challenges, including heat, humidity, and high salinity. However, with over 40 years of manufacturing experience in these conditions, Gulf Craft asserts that it has robust systems to ensure operations run smoothly throughout the year.Spanning 10,034 square meters, the facility will feature an 8-meter natural water depth, a 600-tonne Cimolai travel lift capable of accommodating yachts up to 600 tonnes, and a 75-tonne travel lift for smaller vessels.Additionally, the shipyard will offer an 80-meter alongside berth for in-water repairs, along with four 60-meter yacht berths. Specialized workshops will provide carpentry, upholstery, painting, fabrication, mechanical, and electrical services, complemented by an on-site spare parts shop.Vessel registration services will also be available through a partnership with the Dubai Maritime Authority.Since the company’s inception in 1982, Gulf Craft has grown to become one of the top seven shipyards in the world: once a builder of small fishing boats in its modest premises, which was a genuine passion for Gulf Craft, they then established their credentials as a leader of innovation and technology in the yachting industry. With five brands in their product portfolio ranging from 31 to 175 feet, Gulf Craft manufactures yachts and boats that appeal to a wide audience, such as touring passenger vessels, Silvercraft family day boats, Oryx Sport Cruisers, Nomad Explorer Yachts, and the flagship Majesty Yachts.Credits: Gulf Craft
November 13, 2024
The Italian Sea Group S.p.A. ("TISG") reported a robust performance for the first nine months of 2024, showcasing significant growth across key financial metrics. Revenues reached EUR 292 million, marking an increase of 11.4% from EUR 262.2 million in the same period last year. EBITDA improved by 16%, totaling EUR 50.1 million, with an EBITDA margin of 17.2%, up from 16.5% in the first nine months of 2023.Key financial highlights include:Revenues: EUR 292 million (+11.4% vs. 2023)EBITDA: EUR 50.1 million (+16% vs. 2023), EBITDA Margin: 17.2%Net Financial Debt: EUR 19.0 millionInvestments for the period: EUR 7.2 millionTotal Order Book (contracts in progress): EUR 1,275 million as of September 30, 2024.Giovanni Costantino, Founder & CEO, expressed confidence in the positive trajectory of the company, especially following the successful debut of new superyachts at the Monaco Yacht Show. He emphasized the ongoing negotiations that could further enhance the company's performance heading into 2025.JAS In detail, TISG's revenues stemmed from shipbuilding, contributing EUR 257.3 million, up 12.2%, while refit revenues totaled EUR 34.8 million, increasing by 5.8%. The strategic focus on operating costs and production efficiency bolstered EBITDA margins.The backlog remains strong, with contracts related to new yachts and refit projects valued at EUR 1,275 million. Net backlog, deducting recorded revenues, stood at EUR 533 million.Investments during the period totaled EUR 7.2 million, aimed at elevating production capabilities, including the establishment of a business unit dedicated to steelworks.Net Financial Debt increased to EUR 19.0 million as of September 30, 2024, reflecting dividend payments and ongoing investments. The company continues to adhere to a strategic approach that balances growth and financial stability.In governance news, following the resignation of Simona Del Re, Mr. Filippo Menchelli was co-opted to the Board and appointed Chairman. Menchelli previously led the company’s financial strategy and operational efficiency initiatives.The Board also reaffirmed the independence of its non-executive directors in line with governance standards.ADM 75mLooking ahead, TISG remains committed to its growth strategy for 2024 and 2025 and is optimistic about upcoming negotiations for large yachts, including new projects in the Admiral fleet. Following the great success achieved last September at the Monaco Yacht Show, in particular with the MY Admiral 66m JAS and MY Admiral 78m Platinum, the Company is working on several negotiations for large yachts, which it believes will be finalised between late 2024 and early 2025.In this perspective, TISG recently presented to the market some details of its newest project in the Admiral fleet, ADM 75m, a response to the growing industry demands in the 70m+ segment, redefining the concept of elegance and comfort at sea. The Italian Sea Group is a global operator in the luxury yachting industry, listed on Euronext Milan (“EXM”) and active in the construction and refit of motor yachts and sailing yachts up to 140 meters. The Company, led by Italian entrepreneur Giovanni Costantino, operates on the market with the brands Admiral, renown for elegant and prestigious yachts, Tecnomar, Perini Navi, and Picchiotti; the Company has a business unit, NCA Refit, that manages the maintenance and refit services for yachts and mega yachts with a length over 60 meters. Credit: The Italian Sea Group
November 13, 2024
Denison Yachting has introduced the Project Spitfire, an impressive 50.6-meter motor yacht crafted by Ares Yachts. This new construction opportunity is a joint central listing shared with Will Christie of Christie Yachts, based in London.Inspired by the iconic Supermarine Spitfire fighter aircraft, Project Spitfire exemplifies sleek design and cutting-edge features. Ares Yachts states that the superyacht seamlessly merges aeronautical elegance with exceptional maritime capabilities, built upon the award-winning Ares 150 Bold hull, recognized as the 'World's Best Offshore Patrol Vessel' in 2018. The hull design has undergone extensive optimization and validation through advanced simulations and rigorous testing, ensuring a superior blend of design innovation and technical precision.Spitfire offers luxurious accommodations for up to 18 guests across five staterooms, featuring a full-beam owner’s suite on the main deck complete with a private deck featuring a hot tub, movie area, and side balcony. The yacht includes two double cabins, two twin cabins, and five crew cabins, all designed for utmost comfort. The interior layout promotes informal and versatile living, catering to diverse guest needs and creating a relaxed atmosphere.Equipped with a diesel-electric hybrid propulsion system, Spitfire focuses on delivering a refined user experience by minimizing noise, emissions, and vibration. This advanced system allows for six hours of silent cruising without the genset or one hour entirely on electric power. It can achieve up to 11 hours of "silent" operation during typical Mediterranean conditions in a 24-hour period, ensuring a tranquil experience while keeping operational costs in check.Alex G. Clarke, Denison’s superyacht broker representing the project, praised Ares Yachts, a prominent family-run business located in Antalya, Turkey. “Ares Yachts is one of the most impressive shipyards I’ve encountered, and I’m confident Spitfire will showcase their exceptional quality upon delivery," he remarked. The yacht showcases a wellness-centric design, featuring a gym, beach club, and fold-down balconies, blending interior and exterior living spaces with flair.“Collaborating with such renowned figures as Dickie Bannenberg and Simon Rowell has been truly gratifying, bringing about a dream project,” added Clarke. Construction for Project Spitfire is set to commence in early 2025, with a delivery timeline of two years. Its pricing reflects the prestigious standards expected from Bannenberg & Rowell, positioning Ares Yachts as a leading name in the global superyacht market.Ares Yachts, situated in Antalya Free Zone on Turkey’s south coast, spans 40,000 square meters of build space across four large sheds. Besides Simena, the shipyard is concurrently working on other projects, including the 50m motor yacht Spitfire and a 54m explorer yacht known as Project Atlas. Additionally, Ares Yachts is developing a 65-85m yacht range in collaboration with Lateral Naval Architects.Credits: Denison Yachting
November 13, 2024
Italian yacht manufacturer Sanlorenzo has announced impressive financial results for the first three quarters of 2024, highlighting a growing order backlog that has reached €1.72 billion, a record high for the company.In the first nine months of the year, Sanlorenzo reported net revenues from new yacht sales totalling €669 million, marking a 6.9% increase from €626 million in the same timeframe last year. This growth is primarily driven by the superyacht sector, which experienced a substantial 15.4% rise in revenue, while the yacht and Bluegame segments showed steady performance with more modest gains.The company's net profit climbed to €72.9 million, reflecting a 9% increase from €66.9 million in 2023, resulting in a profit margin of 10.9%. Sanlorenzo also made strategic organic net investments of €27.8 million aimed at enhancing production capabilities and developing new models. When accounting for acquisitions, total net investments amounted to €162.1 million.The group’s gross order book expanded by €355 million in the third quarter alone, benefiting from 90% of orders being sold directly to end clients. With substantial bookings already in place, over 94% of the company's revenue guidance for new yacht sales is covered for the current year, while €844 million is secured for subsequent years. The net backlog is strong at €1.05 billion, providing a coverage ratio that surpasses 1.1 times the guidance for new yacht revenues in 2024.Regionally, Sanlorenzo has seen remarkable growth in the Americas, where revenues surged 39%, complemented by an 80% increase in the MEA region. The APAC area also reported a 17% rise, while European revenues experienced a 9% decline, largely due to high comparative figures from the previous year.EBITDA for the period rose to €123.6 million, representing an 8.6% increase from last year’s €113.8 million, translating to an 18.5% margin on new yacht revenues. EBIT was reported at €97.5 million, up 6.8% from the prior year, with a margin of 14.6%.As of September 30, 2024, Sanlorenzo's net cash position stood at €27.2 million, influenced by dividend distributions and one-time cash flows linked to recent acquisitions.In August 2024, the company completed the acquisition of Nautor Swan Group, broadening its portfolio to encompass 13 entities across seven countries. This strategic move aims to foster synergies in technology, production, and marketing, enhancing the company’s presence in both the motor and sailing yacht markets.Sanlorenzo's chairman and CEO, Massimo Perotti, remarked, "The results from the first nine months reaffirm the strength of our group, which continues to thrive in challenging conditions due to our well-balanced and meticulously crafted strategy."He further noted that with a net backlog exceeding €1 billion, of which 90% is sold to end clients, the company is insulated from the fluctuations typical in the distribution networks of competitors dealing with lower-tier products. Perotti underscored the importance of substantial investments in direct distribution channels, reinforcing Sanlorenzo's global footprint while creating operational efficiencies.He described the company’s approach as rooted in "desirability, scarcity, and genuine sustainable luxury," with a focus on "innovation that honors tradition and aspires to unparalleled quality."Sanlorenzo has confirmed its forecast for 2024, anticipating strong results across all financial metrics – revenues, EBITDA, EBIT, net profit, and investments – anchored by a solid order backlog that meets more than 90% of the year's revenue projections.The company has updated its estimates for its net financial position at year-end, now projected to be between €110 million and €120 million.Sanlorenzo was founded in 1958 in Viareggio by yacht builder Gionvanni Jannetti. In 2005, Massimo Perrotti became the majority shareholder in the shipyard. Sanlorenzo builds yachts ranging from 28.60 to 73 meters in length. Credits: Sanlorenzo
November 12, 2024
Pershing has introduced the GTX70, a remarkable addition to its Sport Utility Yacht range, showcasing a blend of innovation and comfort consistent with the previous models. This cutting-edge yacht boasts an impressive design aimed at maximizing external spaces, allowing for a stronger connection with the surrounding water. The seamless flow between interior and exterior areas enhances livability, particularly on the main deck, creating an expansive, open space experience. Every detail aboard the Pershing GTX70 emphasizes comfort, especially in how the various volumes harmonize to facilitate exceptional relaxation. This model is the impressive result of a collaborative design effort involving the Ferretti Group Product Strategy Committee led by Piero Ferrari, Vallicelli Design, and the Group’s Engineering Department. The hull was expertly crafted at the Ferretti Group Plug and Mould facility, where advanced technology is seamlessly integrated with Pershing’s renowned craftsmanship. A pivotal feature of the GTX70 is its space optimization, offering 30% more exterior areas and 10% greater interior spaces than similar models, emphasizing the brand's commitment to creating environments where guests can socialize and enjoy the sea to the fullest. The exterior design of the Pershing GTX70 is inspired by the acclaimed Pershing Gran Turismo family, highlighting its sporty lineage through an incredibly vertical bow that enhances the boat's sleek silhouette. The seamless, convex sheer line flowing from bow to stern, alongside the bulwarks, creates inviting outdoor terraces, embodying a sophisticated use of space. Inside, the dynamic interior design reflects the brand’s cruising ethos, with the main deck featuring a split stern area that enhances the beach-like atmosphere. With terraces opened, this area expansively measures 23 square meters, seamlessly merging the outdoor dining space with the interior lounge through an ingenious galley design enhanced by a versatile up-down pocket window. Below deck, the GTX70 offers three comfortable cabins, each with private en-suite bathrooms, emphasizing space efficiency thanks to innovative design strategies. Additionally, a convenient laundry room enhances functionality and accessibility. Atop the yacht, a 16-square-meter sportbridge caters to relaxation with sunpad areas, dining space, and helm station, all protected by an electrically operated bimini top. Performance-wise, the GTX70 is equipped with three 900 MHP VOLVO PENTA D13 IPS1200 engines, achieving a top speed of 35 knots and a cruising speed of 30 knots. The yacht will also hold CE Class A certification, ensuring it meets the highest safety standards for vessels under 24 meters in length.The Ferretti Group, led by Chief Executive Officer Alberto Galassi, is now one of the world’s leaders in the construction and sale of luxury yachts and pleasure vessels, with a unique portfolio of brands: Ferretti Yachts, Riva, Pershing, Itama, Mochi Craft, CRN, Custom Line and Wally.Credit: Ferretti Group
November 12, 2024