NEWS

Stuart Larsen of Fraser Yachts has had a record year by anyones standards, with some of the most expensive superyacht sales having his name sealing the deal. SYT's Francesca Webster caught up with Stuart to find out a little more about his predictions for 2022, his life as a yacht broker and his recipe for success

How did you enter the world of yacht brokerage, can you give a bit of an overview of your career?
I fell into yachting by chance, like most of my peers. After graduating from law school in New Zealand, I took a year off to travel. I had a scholarship to Harvard University but I wanted to see a bit more of the world before getting serious about what I thought would be a legal career.  The era of cheap travel hadn’t arrived yet and Kiwis didn’t travel as much as they can now but, regardless, off I went.

After spending a brutally cold Christmas in New York, I travelled to Florida in search of the sun, something more like Christmas at home. Funds were running low and having done a lot of competitive sailing in New Zealand, I easily got work and accommodation on a boat in Fort Lauderdale.

Of course, with my Kiwi accent I met many people in the yachting business and made friends with a well-established yacht broker who had just started his own company. He decided he wanted to take me under his wing and offered me a sales position in his company. I didn’t know anything about brokerage, let alone that it could be a viable business, but I wanted to find out more. It certainly seemed more exciting than more law books. It was – and I  have never looked back.

I joined Fraser Yachts in 1980 and have been with the company for my entire career, through five different ownerships. My parents, of course, were horrified. I do not think my father forgave me until I sold the new build project for Octopus almost twenty years later! He still wanted me to be a lawyer………….. 

How do you see the industry has changed during your years as a broker?
Apart from the obvious - the size, length and number of yachts and cruising grounds have increased significantly – the more interesting changes are less evident.  

It was the early days of the internet and I was lucky to count among my many clients a number of first-generation IT and tech entrepreneurs whose innovations literally changed the way we live. They were curious, creative, technically minded and fascinated by the natural world. Communications and IT meant that they were no longer tied to their desks. Now it was possible to travel and explore while still keeping tabs on business. The yachts they bought and built reflected their spirit of innovation and technical boldness. For example, Octopus with her integrated dock, dual helicopter landing pads and submarine, the tender capability of Tatoosh – Senses, Skat and many others, all come to mind. At the time, barring ships for warfare and rockets for space, yachts were the most sophisticated and complex craft man could devise.

The industry as a whole is just catching up now: helicopters, large tenders, spas and beach clubs, even submarines on the larger yachts, are more commonplace. But there is a key difference. The design used to be driven by the function, today most yachts are designer yachts, where design for design’s sake overshadows the functionality. There are a few recent, glorious exceptions - Artefact springs to mind, a rare combination of a visionary project, managed by a talented captain supported by a creative, design team and a yard willing and able to innovate technically.
 
The past twenty years has also seen the rise of production and semi-production yachts. They are more standardised since they need to appeal to a larger market segment. They take less time to build and the yard can manage the projects more efficiently – there are fewer problems to solve, less issues to go wrong. While the demand for custom yachts continues, only a handful of yards have the know-how or interest to build anything custom, bigger than 80 metres. But now we see the market maturing with yards focused on guiding demand and creating, rather than following, trends.

What are the biggest challenges brokers face in such a competitive market?
I don’t think the key challenges have changed over the years. Numbers have increased so there is more inventory to get to grips with. New yards have sprung up globally so it’s more difficult to track every new project. The internet has helped manage the overload and tools like the MLS systems have become invaluable but they are no substitutes for hard earned knowledge and experience. There are too many brokers who think it’s an easy and glamorous business. Everyone is ready to talk the talk but much fewer are willing to walk the walk. There are only a handful of companies that can offer clients proper advice, service and guidance and I am astounded at the lack of knowledge some brokers have when dealing with yachts over $20 million. I sometimes ask myself if I was a buyer or a seller, would I entrust my $20 million business to that person………….

But, essentially the role of a broker hasn’t changed over the years. The challenge is doing it right. We all talk about so-so having sold this or that yacht. A broker doesn’t sell a yacht; his (or her) job is to make the sale happen. This is achieved by smoothing out all the snags, hitches (and ruffled feathers and egos) that are part and parcel of every sale. Personalities are large, the stakes are larger and all parties want to be the winner. The aim is to enable the parties to reach an agreement that all can live with. This means having a clear idea of the outcome you need to reach and managing each step of the process. It is time consuming, requires a lot of thought, idea tossing, fine tuning and creativity. It’s a long-haul journey. Interestingly, while we have a lot more tools, they don’t necessarily make the job of a dealmaker easier. Like building a yacht - you can’t compress the process, it requires time, attention, a good blueprint, a shared road map and a thorough understanding of the yacht sale process in order to arrive at a closing.

You have had an exceptional year, with some major sales. What do you think are the secrets to success in the big boat market?
I am still surprised when I look at the numbers. I sold 14 yachts in 2021 which translates into more than three quarters of a billion dollars and over 800 metres (2,624’) in length. In terms of gross tonnage, the total volume of yachts I have sold is equivalent to the gross tonnage of forty-five 50 metre yachts!
More importantly, I have acted for young, first-time buyers as well as for clients I first dealt with 30 years ago. It has also been a great privilege to be asked to represent yachts Iike Skat and Octopus which I originally sold as new build projects, in addition to the other 12 sales this year. 

The secret? Well, experience and business acumen are essential. Working with a well-respected company with an international presence is also important since our clientele is global. Marketing plays an increasingly central role, all the more so during the pandemic when buyers were not always able to visit a yacht in person.  Really it still all boils down to knowing your business, saying it how it is and building up trust.

What do you think 2022 holds for the yachting industry?
The 2021 boom was unexpected. I think most companies were bracing for a downturn, even as bad as the GFC. The onset of the pandemic was so fast there was no time to think things through and certainly no historical map to guide us.

Then, all of a sudden business picked up rather than falling off a cliff like we anticipated. It was an eye opener until we realised that yachting provided an escape from the constraints of social distancing and lockdowns. Coupled with a booming stock market and the availability of cheap money, the yachting market simply exploded. However, the sheer size of the surge in demand was astonishing, both in brokerage and new construction. I don’t think 2022 can be such an extraordinary year.

Good brokerage inventory is short, shipyards are full and, in many cases, over-extended. Some are not even contemplating discussions, let alone commitments with clients for new builds until their backlogs subside. A repeat of 2021 in sales is not feasible but, overall, the yachting market will remain upbeat as the inventory works its way through the various stages of ownership.  Interest in yachting will almost certainly remain high since the impact of the pandemic is going to be with us for a long time. Barring, of course, an increase in the cost of money or a significant slow-down of economic recovery impacting asset markets, yacht sales and prices should hold steady or firm up some more.

To date, the surge in numbers and asking prices should provide a springboard for new investment in greener, more sustainable solutions. Younger owners are more attuned to environmental issues and likely more willing to pay a premium for effective solutions, but green has a long way to go to become mainstream.

On the downside, there has been a lot of over-promising from many builders. We need to be ready for some disappointing and late deliveries from some yards, driven by not only Covid slowdowns but ongoing supply chain issues and some shipyards’ inabilities to scale-up fast enough and reorganise workforces to the new levels that are now needed.

Stuart is pleased to announce the sale of SKAT, his 13^th sale in 2021. Stuart acted for the buyer and the seller.
“In my view SKAT was one of the most exciting yachts on the market this year. – said Stuart – “She was extraordinarily well built, impeccably maintained, and her layout and design are innovative and elegant. Her enduring appeal was confirmed by the extraordinary interest shown by buyers during the Monaco Yacht Show”.

What makes SKAT so unique is the seamless continuity between her exterior and interior in terms of design, layout and décor. Functionality sets the tone since living in comfort at sea, in hot and cold climates, was a key priority. The exterior is essentially a succession of flat surfaces, the only curve is the striking sweep of the bow. The grey paintwork highlights SKAT’s uncompromising lines.

The interior is as essential as the exterior. Built for comfort rather than show, the elegant, minimalistic interior by Marco Zanini looks as modern today as when SKAT was built. There are no superfluous lines or decoration. The construction brief called for as much natural light as possible. The glass conservatory on the bridge deck allows natural light to come in from above and below so one really has the feeling of living on the water. In order to optimize space, and cater for work and play, the layout is designed to be flexible: the dining room doubles as a meeting room, the main salon as a cinema, even the elevator can be used as a dumb waiter, with custom shelving popping out for dinner plates, when guests are seated for dinner.
In terms of performance, SKAT sets equally high standards.  She is one of the quietest yachts afloat. The floating floors are fixed on shock mounts to eliminate all vibration and, while cruising at 14.3 knots, 45dbA was recorded in the salons and 34dbA in the Owner’s stateroom. Two big, stainless steel-encapsulated exhaust systems reduce exhaust noise to barely audible levels.

SKAT is heli capable and can land and carry an EC135 or Agusta 109 in private use. The equipment to refuel and maintain the helicopter is located in the raised helipad which can be made ready for landing or departures in minutes.
Three years into the project, her naval architect, Espen Øino summed up the entire build team’s feelings by saying “SKAT is a yacht like no other”. This continues to be true almost 20 years later.
SKAT was asking Euro 49.5m.
 

Stuart is pleased to announce the sale of Ocean Z the 33-meter (108’) Custom Line Navetta series built by Ferretti in 2018. This is Stuart’s 12^th sale in 2021.
The ideal family yacht, Ocean Z’s elegant but aggressive exterior lines were designed by Zuccon International Project while the naval architecture is by Custom Line Spa.

Built entirely in GRP, the Navetta 33 series embodies Italian style and flair. Known for her large interior volumes with lots of natural light, Ocean Z makes excellent use of here 262 GT. In addition, her exterior spaces rival a 40-meter vessel.

The beautiful, contemporary interior designed by Giuseppina Arena is both comfortable and welcoming. The neutral tones and large windows create a relaxed holiday atmosphere. A starboard side balcony in the main salon is ideal for inside/outside living.  

Ocean Z can accommodate up to 11 guests in five well-appointed cabins, including a master suite on the main deck. Lower deck staterooms include three queen bed cabins and one double with a Pullman bunk. All cabins have a full en suite bathroom. The staterooms are quite large and very comfortable for a yacht in this size range. Ocean Z also has accommodation for 5 crew members including the captain.

OCEAN Z’s large outdoor living spaces perfectly complement her interior. Elegant and well-laid out, she has different areas for relaxing and socializing. Her sundeck showcases a forward whirlpool with sunbathing area, a wet bar, alfresco dining and a lounge seating area.

Ocean Z is powered by two Caterpillar C32 12V 1600 hp engines giving her a maximum speed of 17 knots and a cruising speed of 12 knots. Her maximum range at cruising speed is 1,500 nautical miles.
Ocean Z he was asking $ 8,350,000.

Stuart is delighted to announce the sale of Heesen’s YN 19650, Project AURA, a 50-metre steel displacement motor yacht built just under the 500 GT threshold.

AURA’s solid Dutch pedigree and optimized interior volume, enhanced by flowing exterior lines by Clifford Denn and an elegant interior by Reymond Langton ensured the sale was was closed in a record 20 days. A really nicely profiled pedigreed Dutch built yacht, available in 8 months, was hard to pass up!

2021 has been an intense year for Stuart with a record number of sales driven by a renewed interest in yachting and by increased financial liquidity, a trend that will likely continue, also due to lingering concerns about the global pandemic.

A true bluewater motor yacht with a steel displacement hull, ideal for extended cruising, AURA is built upon Heesen’s proven technical platform. Her bulbous bow adds both comfort and fuel-efficiency during long passages in open water and in rough seas. The sturdy, round-bilge hull is also equipped with zero-speed stabilisers, to ensure optimum steadiness at anchor.
Two MTU 8V4000 M63 engines give AURA a top speed of 15 knots, and a range of 3,800 nautical miles at her cruising speed of 13 knots.

AURA has generous outdoor decks including a beautifully designed beach club aft with a fold down platform. The large sun deck is complete with whirlpool, al fresco dining and sun loungers. Tenders and toys are stored on the foredeck.

Her interior is defined by clean lines and surfaces with lots of natural light and chic décor. Ten guests are accommodated in five ample cabins, with four suites on the lower deck and the spacious, full-beam master stateroom on the main deck forward. AURA can accommodate 9 crew.

Construction and outfitting is already well advanced such that AURA will be delivered in April 2022 after intensive testing in the North Sea.