AutoEvolution – The over-enthusiastic reactions to the first wave of sanctions against Russian oligarchs and the mass seizure of their luxury assets seems like a distant memory today, though it’s only been a couple of years. For the people of Antigua and Barbuda, it’s still a present, painful, and very costly memory, since they remain stuck with Alfa Nero.
Alfa Nero could very well be the cautionary tale of the 2022 wave of sanctions and seizures, in fine company with the likes of Amadea and Royal Romance, the only two other super yachts to have gotten close to being force-sold at auction. Aside from this dubious distinction, Alfa Nero is also an outstanding super yacht, labeled an icon by builder Oceanco and packed with several industry firsts.
As of this writing, Alfa Nero is a $120 million superyacht-shaped burden on the people of Antigua and Barbuda, where it’s been stuck for the past two years. It was arrested here on behalf of the U.S. and has been barred from sailing off ever since after its supposed owner, Andrey Guryev, was included on sanctions lists.
It’s been through two failed auctions and it’s the subject of at least a couple of ongoing lawsuits. Perhaps worst of all, it costs the cash-strapped people here some $1 million a month in maintenance only, because whatever country seizes an asset has to pay to maintain it in the same condition until the court decided whether it can sell it or return it to the owner.
Third time’s a charm
Last summer, confirmation came that ex-Google chief executive Eric Schmidt had placed the winning bid for Alfa Nero. The super yacht had been estimated at $81 million, which was far lower than its reported value of $120+ million, but Schmidt got it on the cheap – comparatively speaking – for $67.7 million.
The “get” with the low valuation and even the lower winning bid was that the super yacht came riddled with debt and legislative baggage. Even if a third-party country sells a seized super yacht, that doesn’t mean that the owner is allowed to sail it. This ultimately proved too much for Schmidt, and he took his business elsewhere, buying the Kismet mega yacht instead.
What should have been a win for the local government, helping to recoup the bills it had already covered for the maintenance of Alfa Nero and putting some cash in the state coffers, resulted in two lawsuits. One came from the second highest bidder and the other from the Russian owner’s family, arguing that the seizure had been illegal.
That second bidder was American billionaire Warren Halle, who should have gotten the vessel once Schmidt backed out of the deal. Both lawsuits are ongoing as of this writing.
It explains why the local government was wary of sharing any more details with the public. That is, until today. Mid-June, Chief of Staff Lionel Max Hurst addressed the elephant in the room, revealing to the media that negotiations are underway for the third time to secure a new owner for the super yacht. This time, though, the government was acting under a self-imposed gag order, so they wouldn’t be offering details about the deal, including valuation or estimated price until the ink has dried on the dotted line.
“The United States sanctions on these wealthy Russians have tentacles that reach far and we intend not only to abide by our own obligations but by those imposed upon us as a result of treaty obligations and the like,” Hurst added.
This kind of discretion would have probably made all the difference the first two times the superyacht was auctioned, but you know what they say, it’s always better late than never.
What if you build an icon?
That’s the question that Oceanco answered with Alfa Nero, delivered in 2007. As such, it integrated in the build not just the most luxurious amenities and lavish interiors, but also a handful of industry firsts.
Measuring 82 meters (269 feet) in total length and with a beam of 14.2 meters (46 feet), Alfa Nero offers ample spaces for socializing, relaxing, and pampering across four decks. With an exterior design by Nuvolari Lenard and interiors by Alberto Pinto, it was the first Oceanco build to have Pinto as collaborator. The result is a superyacht with a contrasting black and white silhouette and interiors that live like art pieces at an exclusive exhibit, but without losing their family-friendly appeal.
Industry firsts include, aside from the Pinto collaboration, the first “statement” pool on an Oceanco vessel. It’s a supersize 12-meter (39.3-foot) pool with an infinity edge that becomes a water feature, custom lighting and a hydraulic floor that comes in handy for height adjustment or to turn the entire space into a dancefloor or a helipad.
Features include accommodation for 12 guests and 27 crew, an owner’s suite taking up the entire main deck, with a private jacuzzi and a large terrace, a second jacuzzi for the guests, formal and informal dining spaces, a gym with a wellness center, a beauty salon, a private cinema, and countless outdoor spaces for sun worshippers.
When it sailed into local waters, Alfa Nero carried loaded cellars and a full crew. In the years since, its provisions have run out, being consumed by the skeleton crew still onboard. Meanwhile, the local government is paying $1 million a year on salaries and maintenance, including a reported $2,000 a day to run the ACÂ and keep the mold out of the cabins.
With bills piling up, it’s no wonder the government was doing its best not to jinx this third attempt at selling this burden on the taxpayer, no matter how beautiful or iconic.Â
This week, Prime Minister Gaston Browne confirmed that a deposit has been made on the Alfa Nero super yacht, which is being sold for $40 million.
The sale, managed by Port Manager Darwin Telemaque, includes a 4.5% broker’s fee.
