point amid ‘crunch’ ▪ UniCredit now leasing yachts
in seven countries
UniCredit Leasing has signed its first yacht financing deal in
Bulgaria, while its Italian counterpart, a leader in this sector,
reported a downturn in business on the back of the general economic
stagnation.
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The new business, which will be financed locally in Bulgaria,
represents tough new competition for existing local player
Hypo-Alpe-Adria-Leasing.
The move by UniCredit Leasing, involving the financing of both
the motor and seagoing yacht varieties, means it does yacht leasing
in Russia, Poland, Romania, Hungary and France, as well as Italy
and now Bulgaria.
The new Bulgarian lease contract offered by UniCredit Leasing
includes a minimum lease amount of €25,000 and repayment over five
years. For purchases of more than €800,000 the term is extended to
seven years. The initial instalment for all clients is 20 per cent
and administrative fees range between 1 and 1.5 per cent, while in
Italy they are below 0.1 per cent.
Interest rates are floating and VAT is deductible if the yacht
is used for commercial purposes.
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By GlobalDataPlamen Minev, chief executive officer of UniCredit Leasing in
Bulgaria, said: “According to some yacht importers in Bulgaria, the
sales [of yachts] are going to double or triple in 2008.”
Yacht deals are sourced from the parent bank, vendor finance and
direct selling. “We are in the process of establishing good
business relationships with the most important yacht vendors in
Bulgaria,” said Minev.
UniCredit’s yacht leasing contracts vary between countries. Its
Italian product is in the process of changing to suit new customer
demands. Historically, they have been short-term, around 36 months,
with a very high down-payment of about 50 per cent of full lease
value and with a residual value of around 1 per cent.
Now, according to Fabio Mungai, marketing manager of Locat,
UniCredit Leasing’s Italian arm, there is more demand for lower
down-payments, of between 10 and 20 per cent, longer contracts of
up to seven years and RVs of around 10 per cent.
Mungai said: “This solution makes it easier to resell the yacht
since the lessee can offer to a potential buyer a leasing contract
instead of the cash payment of the whole amount of the purchase.
The RV can be lowered in the new contract and the duration can be
amended in accordance with the new customer’s needs.”
In 2007, Locat closed 1,500 individual yacht contracts, with an
average value of around €500,000 and with a total value of €800m.
Deals range in size between €50,000 and €10m. It also finances
shipyards, including Ferretti, based in Forli, which manufactures
yachts between seven and 80 metres in length, and Azimuth.
Locat has a market share in yacht leasing in Italy of 33 per
cent. Its main competitor is Intesa Leasing e Sanpaolo. Locat also
finances dealers that buy yachts, on a speculative basis, from
shipyards. Locat has been affected by a general downturn in the
yacht leasing market in Italy, which has been triggered by the
credit crunch. The value of its deals went down 10 per cent in the
year to April 2008, ahead of a market decline of 17 per cent.
Meanwhile, the number of deals it signed increased 13.1 per cent,
compared to a market decline of 13.4 per cent. Average contracts
dropped, by around €557,000 to €480,000, said
Mungai.
|
BRENDAN MALKIN REPORTS ON CONTRACT NOTICES ISSUED BY UK |
||
|
The following contract notices were issued in May for |
||
|
Lessee |
Value |
Deadline for pplications |
| Northampton Borough Council | £750,000 | July 1 2008 |
| Gwynedd Council | £1.5m | July 1 2008 |
| North Lanarkshire | £6m | July 1 2008 |
| City of York Council |
£1m | July 1 2008 |
| Northamptonshire County Council |
£2.25m | July 1 2008 |
| Bedford Borough Council | £1m | June 26 2008 |
| Wyre Forest Community Housing Ltd | £550,000 | June 24 2008 |
| Oadby & Wigston Borough Council | £1m | June 23 2008 |
| North Warwickshire Borough | £250,000 | June 23 2008 |
| Blaby District Council |
£750,000 | June 23 2008 |
| Knowsley Metropolitan Borough Council | £1m | June 23 2008 |
| Telford and Wrekin Council |
£500,000 | June 16 2008 |
| Ellesmere Port & Neston Borough Council |
£1m | June 10 2008 |
| Shropshire County Council | £2.5m | June 10 2008 |
* Contract completion date in all cases is March 31 2009
| The following contract notices were also issued in May |
|||
| Deal type | Lessee | Value | Deadline for applications |
| Managed service on campus to provide students and staff with opportunity to lease or rent affordable laptops |
University of Manchester | N/A | June 30 2008 |
| Contractor for management of vehicle fleet, which currently numbers 620 vehicles |
South Tyneside NHS Foundation Trust | £60,000 per annum full contract value up to £300,000 | June 23 2008 |
| Lease finance for acquisition of specialist fire vehicles, plant and general equipment |
Derbyshire Fire Authority | £750,000 | June 20 2008 |
