VesselsValue platform aims to offer transparency to superyacht values

Mike Stones
By Mike Stones July 30, 2020 16:51

VesselsValue platform aims to offer transparency to superyacht values

Greater transparency in luxury yacht values is the aim of a new automated superyacht values platform from London-based online valuation and data provider, VesselsValue.

The database that underpins the automated valuations contains more than 9,000 live and on-order yachts. It also includes a comprehensive searchable record of all asking prices, sale and purchase transactions, new building contracts and refits, in what the company describes as an effort to bring “true transparency to the market”.

There is nothing new about automated valuations but this is the first time it has been applied to these type of assets – superyachts,” VesselsValue’s project lead Sam Tucker told Superyacht Investor. “Of course, valuations do occur but they are usually done by a broker or a surveyor. At midnight GMT every night, our model is run and re-values over 6,000+ motor yachts [greater in size than 24m] in order to stay reactive to the latest market conditions. Doing this by hand would be near impossible for a human.”

‘Near impossible for a human’

Another novel feature that separates the system from human valuations is that the algorithms are only motivated by accuracy, said Tucker. “As honest as we all think we are, we do suffer from cognitive bias and we could be motivated to provide a ‘favourable’ valuation depending who we’re working for.

“This is not a dig at surveyors or brokers performing valuations but just a flaw of being human. Our model simply interested in being as close to the market value as possible, so is truly objective.”

VesselsValue contends that transparency leads to confidence, which in turn leads to more participants, more liquidity, more orders and more sales. “This then leads to market growth, benefiting the wider superyacht community, so more lawyers, brokers, crew, managers, designers are needed and employed.”

 ‘More realistic asking prices’

The service is mainly aimed at financiers to help them monitor their loan portfolios. Many of the company’s existing clients who finance ships also have yachting branches and the project was initiated, in part, by their demand. VesselsValues reports interest from brokers looking to use the platform to help educate their clients what a fair price may be for their assets.

They hope transparency may lead to more realistic asking prices and perhaps less time on the market as sellers recognise a competitive offer.

VesselValue’s chief commercial officer, Matthew Freeman said: “While over 20% of superyachts are for sale at any given time, sale prices are rarely disclosed to the market place and therefore VesselsValue’s aim is to make the market more transparent and be the number one-go-to valuation service for superyachts globally.”

Meanwhile, more information about VesselsValue is available here.

 

From VesselsValue’s (VV’s) database:

The world’s largest live motor yacht (by gross tonnage) is M/Y Dilbar:

·        Gross tonnage: 15,917 GT

·        LOA:156m

·        Built in 2016 by Lurssen

·        Owned by Russian oligarch Alisher Usmanov

·        VV value $648m.

For a more modest budget:

·        LOA: 60m

·        Age: 10-years old from a top yard

·        VV value £36m.

 

The VesselsValue’s team L-R: Matthew Freeman, chief commercial officer, Dennis Causier, senior

superyacht specialist and Sam Tucker, project leader. Below: Superyacht values tracked.

Mike Stones
By Mike Stones July 30, 2020 16:51

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