There’s never a dull moment on or off the land in the glamorous principality of Monaco—but the end of September brings a special excitement with the arrival of the prestigious Monaco Yacht Show. For 27 years, the superyacht community has gathered in Port Hercules to enjoy one of the world’s most glamorous yacht shows. With nearly 600 participating companies, exhibitors range for a marine services company to interior designers and shipyards businesses.
If you have a yacht or are keen to purchase one, the Monaco Yacht Show is the place to be. And if you’re looking to finance a yacht purchase, you need to look no further than Enness. We are experts in financing luxury assets.
The financing of luxury assets, including yachts, has changed since the 2008 financial crisis. As interest rates increased, and wages decreased following the crash, so too did the demand for such assets—particularly as these types of purchases are hugely led by lifestyle, and are not a long-term investment.
However, recent years have seen the market pick up the pace, with renewed interest from the USA, Russia and China. In particular, wealthy Americans are enjoying increased purchasing power thanks to the greenback gaining strength. The rapidly increasing number of Russian and Chinese multi-millionaires are also increasingly interested in the super-yacht market.
Political events also play a role in market confidence; Brexit created an air of caution for UK buyers, but the strengthening for foreign currency against the pound has meant foreign nationals are maximising on the opportunity to purchase at a ‘cheaper’ price.
With the increased demand for yachts comes an increased demand for marine financing. Pre-2008 marine finance was largely on a balloon payment basis, but today this is less attractive to lenders. It is still achievable but to a lesser degree due to them being depreciating assets. Assets under management (AUM) are a common way for lenders to take security over an asset like this; for example, we recently secured terms on a £5.9million Sunseeker 115 Sport Yacht, providing the client placed €1million under the management of the bank.
Alternatively, if you’d rather make an on-land purchase, we’d also be happy to assist—the Monaco mortgage market is a complex place, but we can confidently advise you.