Grand Banks Yachts

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Confirmation that the rich is getting richer as a result of the WALL of Money slushing around the world

The Straits Times
www.straitstimes.com
Published on Apr 18, 2013
High five for luxury yacht maker

By Rachel Scully

LUXURY yacht manufacturer Grand Banks Yachts said yesterday it is on track for its best luxury yacht sales since the global financial crisis.

The Singapore-listed company, which has faced internal turmoil over the past year or so, expects to complete five yachts for buyers in the region by June 30, the end of its current financial year.

Buyers from Singapore, Japan and Micronesia contributed to the sales, up from an average of two to three yachts since 2010.

The yachts are priced from US$850,000 (S$1.05 million) for a 43ft boat to US$4 million for a 76ft one.

Mr Hank Compton, the company's regional sales manager for Asia, Europe and the Middle East, said: "The rise in expendable income and better boating facilities in Asia have helped boost sale figures.

"In addition, boats seem to be growing more popular and mainstream in Asia."

Grand Banks will be introducing two new designs of its luxury yachts - the 43 Heritage EU and the 54 Heritage EU - at the Singapore Yacht Show from today to Sunday at ONE°15 Marina Club.

Acting chief executive Peter Poli said he is optimistic and encouraged by the growing demand as the US economy picks up and as Asians appreciate luxury yachts.

He said distributors are gradually more open to holding one or two yachts in stock as customers like to see what they are buying.

The average time for a yacht to be built is six months.

However, Mr Poli acknowledged that the industry still faces some challenges. "Buyers can be tough negotiators and they had more power to demand discounts of up to 20 per cent when sales were down in the last four years," he said. "It's going to take a while before they will be prepared for that mindset change and pay prices that reflect market value."

He added that a long-term challenge for the industry is to ensure that buyer experience and reliability are maintained despite the growing numbers of boaters.

Mr Poli replaced CEO Robert William Livingston II at the start of the year after a period of boardroom upheaval.

Businessman Shallum Eptison, 56, who owns 20 boats and yachts, expects the industry to keep up with technological improvements.

He said: "Buyers often look for good electronics, telephone systems, global positioning system and even after-market service. This is especially important for long journeys or when you're sailing in rural and pristine areas."

The avid yachtsman hails from Palau, a cluster of islands east of the Philippines.

rjscully@sph.com.sg