Burgess Newsletter Spring / Summer 2008 - Burgess Yachts

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Yachts have never been bigger. Shipyard order books have never been
fuller. The yachting industry has come of age and companies in all sectors
– whether shipyards, designers, brokers or suppliers – have created stable
and established businesses for the future.
The current instability in the world financial markets is
creating uncertainty in the lower and middle brokerage
markets (€1,000,000 to €10,000,000), especially in the
United States where many yachts of this value are quite
heavily financed. Conversely, the same economic climate is
already demonstrating a positive knock-on effect in the over
40 metre category, which has been starved of good quality
inventory for a number of years. Sellers have been asking
premium prices and have actually been achieving these
prices. Less impatient buyers who have held off making an
acquisition could now be rewarded with a greater choice of
inventory at more realistic price levels.
The tough area of the brokerage market is the 70 to 90
metre bracket. Between 10 and 20 buyers exist in this
category at the moment and there are virtually no vessels
of this size available for sale. In today's market it is easier
to sell an 80 metre yacht than a 50 metre yacht. Crazy
but true!
The last few years have been especially exciting for large
custom new builds. Should we expect a downturn in new
construction? There’s certainly no sign of it as yet. Burgess
Jonathan Beckett
Chief Executive
L O O K I N G A H E A D
have signed 3 new construction contracts and have 4 letters
of intent for some amazing megayacht new build projects - all
in the first few months of 2008. The value of these 7 projects
is more than an astonishing one billion euros!
As one would expect in this landscape, superyacht
charters go from strength, but with the enduring problem
of not enough yachts to meet the concentrated demand in
high season periods and not enough charterers during the
balance of the year. The charter market will be difficult to
grow further unless the volume of off peak season charters
increases.
However the large yacht market behaves, Burgess leads
from the front and is fortunate to have built a business on
the very strongest foundations. The company is privately
owned, most of our staff have been with us for years and our
dedication to offering a first-class service never falters.
Wishing you an enjoyable summer of cruising and we
look forward to offering you a warm welcome at the Burgess
stand during the Monaco Yacht Show from 24
to 27 September.
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