We spoke to a broker at the world’s largest superyacht agency to find out everything you need to know… just in case you were about to rush out and spend £150m on a new vessel.
For 70 years, Fraser have been one of the biggest names in boat brokerage. With 13 offices around the world and 150 staff, if you are in the market for a superyacht, you call Fraser. In our case, we called Maarten Ten Holter, who has been in the yacht brokerage business for 28 years. From his office in Monaco, he took us inside the high-end ultra-luxe world of the superyacht… and now we don’t want to leave.
What is the definition of a superyacht?”Superyacht” or “megayacht” used to mean yachts of 24 metres and over in length. But now this is shifting to 30 metres and over. “Giga-yachts” is the next step up. There is no set category for this, but I’d say it was anything over 100 metres.
Which kind of yachts does Fraser broker?We work with yachts from 24 metres and up. We currently have 150 yachts listed for sale. In addition, we manage around 65 yachts and charter around another 65 yachts.
Where are your clients from?Most are in Spain, France and Italy; some in Croatia, Greece and Turkey; others in the Middle East. Another hotspot is Florida.
What is the price range of the yachts you sell?From US$1million (£772m) up to $200million (£155m). We recently had a 107-metre yacht called Ulysses for sale at $195 million (£150m). It has been listed since September 2016.
What percentage commission does Fraser typically take?All the major brokers use the following percentages. They are not written in stone, but they are a guideline: the commission over the first $10million is 10 per cent; for $10million to $20million it’s 5 per cent; over $20million it’s 2.5 per cent. But you should be aware that for a lot of transactions there are more brokers involved so commissions are often shared or renegotiated.
Does this mean some of the boats you sell are more expensive than the islands they are sailing between?It’s all a question of demand and basic economics.
What kind of people own these boats?You have the really discerning yachtsman who has been sailing all his life, has been extremely successful, and is in a position to buy himself a yacht. Then you have the nouveaux riches who made money overnight and think: “I already have an aircraft and three houses, I also need a yacht as a toy or status symbol.” Our clients have wealth through inheritance, or through real estate, the tech industry, the financial industry… anything you can think of.
Could you ever see the world’s mega-rich using their yachts to become stateless to avoid tax?I have never come across an owner who said, “I’m stateless, I’m living on my yacht to avoid paying tax.” These people have different structures to reduce their tax burdens.
What are the most extravagant facilities these yachts feature?Extravagant features include infinity swimming pools with overflow and jet streams so you can swim against the current. Helicopters might be considered extravagant or extreme but they also serve a safety purpose. Yachts have jeeps aboard them. They also have speedboats aboard: the transom hatch opens to reveal a little bay; the boat drives in and you close the transom door and pump out the water. The speedboat comfortably sits inside.
What about in terms of interiors?** **Yachts have cinemas, spas, health suites, massage salons – anything you might find in a luxury five- or six-star hotel. The interior finish is a determining factor in the price of the yacht: gold-plated faucets, exotic marble, expensive wood interiors.
What is the strangest thing you’ve heard about?”Well, there is one large yacht and on the deck they have planted trees in huge pots for the owner’s little doggy to do his daily business. Lucky dog. He doesn’t have any problems in the middle of the ocean with what he needs to do.”
Do the requests you get ever surprise you?I’ve been in this business such a long time there’s nothing that surprises me any more. We are all human and sometimes you think, “Really, this is a bit over the top.” On the other hand, the amount of work it generates in the industry – everybody is making a living. It’s good we have those people out there. People with an almost unlimited budget are the people who push the industry forward and want to try out different systems and drive new technology.
How are the technological boundaries really being pushed?We are seeing new hybrid and electric propulsion systems for yachts. More and more yachts are using Kevlar and carbon fibre to save weights. The sails are moving to Kevlar which is much more efficient. There are new hull designs. A lot of motor yachts are built with longer waterlines. And you have inverted bows.
They say that people who buy large cars are compensating for something. Is it the same case for people who buy large yachts?No, I don’t think so. It is all about status, of course. But it’s also privacy that people are looking for. Yes, you could go on a cruise ship, but then you’re stuck with 1,500 other passengers. You might have the largest, most expensive cabin, but you’re still confronted all day with people you don’t want to be confronted with. That’s why celebrities fly in private planes and have these yachts – so they can get away from all that.
Source: gq-magazine.co.uk
