While newbuild prices and pre-owned yacht values are still under pressure, most of the leading European yards – especially those in Germany and the Netherlands – are doing pretty well. Top quality always finds owners that want to buy, writes David Robinson
In the first seven months of 2012 some 50 superyacht orders were placed with over 30 yards in 13 countries[ds_preview]. Depending on how many new orders may be announced at the Monaco and Fort Lauderdale shows and contracts signed up by the end of year, the total of 2012 newbuild superyacht orders may be similar or less than the total of 105 or so concluded in 2011. European yards accounted for 33 of those concluded this year with Italy taking the largest share at 15 followed by the Netherlands with seven and Germany with four.
The dampening factor on the newbuild market is that so many pre-owned superyachts of a wide range of sizes plus a number of newbuild contracts are up for sale so new and existing owners are in a strong buying position. Discounting of pre-owned yacht values is an almost daily practice with some larger yachts seeing cuts of 2–4 mill. $.
A good number of the orders in Europe have been placed with the top quality builders in the Netherlands and Germany and these tend to be among the most costly yachts per metre. Of the yachts ordered so far this year nearly a third are over 50 m and eight of them are over 70 m. Of the latter all were placed with European builders with the Dutch winning three and Germany four.
German yacht builders
One of the most significant recent events in the European superyacht scene was the change of ownership for Blohm + Voss (B+V), the builder of the world’s largest privately owned yacht »Eclipse« (162.50 m)which was delivered to Roman Abramovich in 2010. B+V was acquired by Star Capital Partners, a British private equity group. It acquired the yacht building and other non-military marine activities from ThyssenKrupp Marine Systems.
Following the takeover B+V’s Managing Director, Dr. Herbert Aly, said »the yard’s previous owner had lost all of its appetite for building superyachts«. Star Capital have boosted the B+V funds to stabilise its future. On the yacht side it has in build an 80 m plus yacht – with talks about other larger projects are underway. B+V’s last superyacht delivery was the aforementioned »Eclipse«.
Among the yachts currently built in Germany is »Project Azzam« at Lürssen. When she is delivered in 2013/14 at 180 m she will take the top superyacht placing by some 17 m. Her owner is speculated to be a leading Saudi Arabian businessman and she emerged recently as she was moved from the build shed to a floating dock for her fit out and completion.
Apart from »Project Azzam« the third largest yacht ever built by Lürssen, which goes under the code name of »Project Topaz«, is due to be completed this year. She is a 147 m yacht with 11,589 GT and has seven decks. There is no indication of who her owner might be, reflecting the strict confidentiality that always surrounds yachts built at Lürssen. Extending into 2014 and maybe even 2015, the Lürssen superyacht orderbook includes at least six other yachts ranging between 85 and 120 m. Of these three are known to be set for 2014 completion, comprising »Project 120« building to a H2 Design, the 91 m »Project Rio«, and »Project Global« of 87 m. In 2013 Lürssen is expected to have two megayacht deliveries: the Nuvolari-Lenard designed »Project Bellissimo« of around 88 m and »Project Niki« of 85 m, designed by Espen Øeino with an interior by Aileen Rodriguez
As to this year the first launch came in January with the 87 m »Ace« which was designed by Andrew Winch. She has room onboard for twelve guests and 30 crew members. Powered by MTU 16V 4000s engines, three onboard generators are included, and she is also equipped with Quantum XT Zero Speed stabilisers and a Kongsberg direct positioning system.
In another move Lürssen has acquired its sixth shipyard when it recently took over the Norderwerft yard in Hamburg. This yard, formerly part of the Sietas group, is used for commercial repair work, so if Lürssen needs capacity to support its developing refit activity this yard would be available. It is equipped with two floating docks, one of 128 m and one of 118 m.
At Abu Dhabi Mar Group’s two German shipyards, namely ADM Kiel and Nobiskrug, two yachts are currently in build for delivery in 2013 and 2014. The former yacht (73.80 m) was initially built by ADM Kiel under contract number 423; she is now being completed by Nobiskrug and due for delivery next year. The 2014 project is a 140 m sailing yacht which is a very confidential contract, so very little is known. She will supposedly be built in Kiel, where commercial work is also undertaken. Nobiskrug has already delivered the 73.55 m »Mogambo« in March 2012, with the similar sized »Flying Fox« (which was originally named »Graffiti«) soon to follow this summer.
Abeking & Rasmussen are currently busy with three large yachts, one of 78.40 m (no. 6493) due to be completed in 2013, and two 81 m yachts (numbers 6497/8) which are set to follow in 2014. Most recent deliveries have included the 61 m »Excellence V«, the 78 m »Amaryllis«, both designed by Reymond Langton, and the 60 m »Kaiser« jointly designed by Donald Starkey and Bannenberg and Rowell.
Dutch superyacht yards
The stringent emphasis on quality that prevails in Germany is also a vital strand in the superyacht market strategy of Dutch builders and it has accounted for a great deal of their ongoing order winning success through the downturn. This applies to such as Amels, Feadship, Hakvoort, Heesen, Icon, Jongert, Moonen, Oceanco, Royal Huisman and Vitters to name but a few.
Amels, the yacht building arm of the global Damen Shipyards group, is the Netherlands largest superyacht builder. The company, which has achieved 10 % growth per annum over the past four years, is currently working on nine newbuild contracts extending its orderbook into 2014 or beyond. Already this year it has delivered three new builds and two refit contracts on time.The most recent of these was the 65 m »Sea Rhapsody« which was delivered in June – and like most Amels yachts has been designed by Tim Heywood.
The Dutch company will be undertaking a strong marketing effort at Monaco where it will have the first 67 m Sea Axe fast support yacht (see also page 96) and the brand new 55 m »Step One«, the first of Amels 180 design in its successful Limited Edition range. This 660 t yacht has room for twelve guests and twelve crew members. The nine yachts in Amels’ orderbook range from 54 m to 73.50 m. At least five of them are set for delivery in 2013.
The Feadship group of yards and naval architects continues to be very active and has an orderbook extending into 2014 with six or more yachts in build. These range in size from 45 m up to 101.50 m. The newbuild contracts apart from the 101.50 m ship also include one 99 m for delivery next year and a 62 m yacht. A significant event for the company was the winning of its first superyacht contract from a Chinese client for a 45 m Helix F45 design with delivery next year.
The 78.50 m motoryacht »Hampshire II« has been Feadship’s most recent delivery and prior to her was the 67.27 m »Drizzle« which was inspired by the »Twizzle« built a couple of years ago – a vessel that had much publicity. Late last year the 88 m »Musashi« was delivered.
»The common strategy of product quality linked to good design and excellent manufacturing facilities has been proven to work even when there are financial challenges«
Probably the most successful Dutch yard at winning new orders recently has been Heesen. It has sold a couple of the yachts it was building on a speculative basis. The company is achieving a good balance between new orders and deliveries. In 2011 the company delivered five yachts between 37 and 55 m. So far this year Heesen has delivered five yachts and its orderbook, which extends well into 2015, includes ten yachts between 40 m and 65 m.
The yachts delivered this year include the 35 m »Galactica Plus« which is an all aluminum fully custom semi-displacement yacht. She was delivered in July this year as was the »My Secret«, a 47 m steel hulled full displacement ship with an interior design by Bannenberg & Rowell. The earlier 2012 deliveries comprised two ladies – »Lady L« and »Lady Petra«. The former was a 44 m semi-displacement craft and the latter a 47 m displacement yacht. The final and largest delivery this year so far was the 55 m »Serenity«, a displacement yacht.
Among the deliveries in 2011 were the 55 m »Quin Essentia« which was subject to much interest when she attended the Monaco Yacht Show last year. Other deliveries through 2011 included the 50 m »Satori«, the first of that size class which is proving to be another successful series. Improvements which had been gained from the 17 yachts built in the 44–47 m services were included so that »Satori« and her following sisters will have a highly efficient hull which can contribute to a maximum speed of 25 kn. So these ships range among the fastest 50 m yachts available. The second 50 m, »Adriadna«, was also delivered last year.
The two speculative yachts sales this year were Heesen’s »Project California«, a 47 m yacht designed by Frank Laupman from Omega Architects, and its »Project Ventura« craft. The latter is the fourth yacht to be signed up in Heesen’s 50 m series and this 499 GT yacht is set for delivery in spring of next year.
Finally among the Dutch yards featured here is Oceanco which experienced a change of ownership in 2010 joining the Omani MB Group of Companies. Oceanco builds large yachts and it is gearing up for going even larger. Under the new management a big investment programme will see the yard
being able to construct yachts up to 145 m, placing it among the builders of really large yachts.
Oceanco’s current orderbook comprises two yachts: an 85.60 m under yard no. Y708 and a 92 m under yard no. Y709. These are due to be delivered in 2012 and 2013 respectively. As to deliveries in 2011 the 86 m »Seven Seas« was handed over in January. In 2012 she was followed by the 88.50 m »Nirvana« which was delivered in April 2012. She was designed by Sam Sorgiovanni, the Australian-based designer, and at the owner’s desire she was made into a very environmentally friendly yacht.
Only quality counts
The message from these Dutch and German shipyards is that top quality will always find owners that want to buy. The global financial crisis and the current Euro distress have inevitably caused problems for all yards, but the common strategy of product quality linked to good design and excellent manufacturing facilities has been proven to work even when there are financial challenges.
A number of the yards also undertake refit work which provides a related revenue stream. Quite a few superyacht builders have entered into this business over recent years to support their newbuild activities while other more established players have endeavoured to increase their refit work volumes to maintain or enhance income levels.
David Robinson
