Shipyards owner Palumbo officially takes over superyacht facility

This Concession is for 30 years and the global amount to be paid by Palumbo reaches €29.4 million.

This is made up of a purchase agreement of €7.5 million and rentals of €500,000 revisable by 15% every five years during the duration of the concession period.  On a net present value basis these funds amount to €14.4million when discounted at 9% per annum.

Through this agreement, Palumbo will be committing itself to an investment in the yard of a minimum of €3.6million during the first five years.

Tendering commenced on 10 July 2010 but the process was stopped in late November after Palumbo and the Manoel Island Yacht Yard consortium presented a joint-bid.

By the closing date for the submission of offers on 2 December 2010 two bids were received. Palumbo’s offer was the highest and on 16 December was declared preferred bidder. Negotiations were successfully concluded on 14March 2011.