EFTA01052626.pdf

From: "Barry J. Cohen" To: Jeffrey E. <jeevacation@grnail.com> CC: Brad Wechsler < Subject: Plane stats Date: Wed, 08 Mar 2017 13:37:32 +0000 Attachments: G550_Candidate_Aircraft_with_GV_022217.pdf Inline-Images: image001.png See first column of the attached. From: John Castrucci Sent: Friday, February 24, 2017 10:59 AM To: Barry J. Cohen < Cc: Tom Mitchell ; Lee Rohde < :a; Laurie Nutter Brad Wechsler Subject: FW: G550 Candidate Aircraft and GV Market Data Copying in Barry & Drab on the updates. Barry if you want to schedule a call today prior to your 3:30 meeting, let me know happy to set up. jc John M.Castrucci I Chief Operating Officer I Elysium Management, LLC 445 Park Avenue Suite 1401, New York, NY 10022 From: Tom Mitchell (mailto: Sent: Friday, February 24, 2017 10:34 AM To: John Castrucci Cc: Lee Rohde < >; Laurie Nutter Subject: G550 Candidate Aircraft and GV Market Data Hi John, The attached contains some refreshed industry data of Candidate Aircraft and also an Executive Summary format that you might find to be helpful if passed along. Regarding the GV, I have also made some phone calls to brokers having "make offer" in their advertisement/pricing. Due to 2002 being the last GV production year, benchmarking of GV serial numbers near your S/N 681(2002) are few; meaning most GV's currently on the market are later 1990 vintage. The closest two (2) I have found for sale would be for S/N 638 (2001) with a target price of $13.495mm and for S/N 552 (1998) having a target price of $11.995mm. I should also add that these prices were provided to me with the caveat that "the owners are anxious and lower offers would be EFTA01052626 entertained". Our opinion would be that a reduction of at least $1.0mm for each aircraft will likely occur upon an actual sale. We also received some Q4 2016 revised G550 data. As Lee indicated yesterday, the market has continued to decrease, however if you believe brokers, the G550 is now stirring up some attention at their current lower prices. We think this claim has some truth based on the G550 performance and avionics. Also, there has been some influence of the G550 with regards to the G500 production schedule. As you might know, Gulfstream tends to entice existing owners with the next model version; in this case the G500. While understandable, it does disturb those G550 owners who aren't necessarily up-grading, but their G550 market values are negatively influenced. In summary, what is provided in the attachments is essentially revised data we have accumulated for you. If you were to also consider our discussions with brokers, the GV is said to be worth $11— $12mm, with the purchase price for a good G550 of $18.5mm - $20.mm with a desire to add $.5 - $.7mm in upgrades and cosmetics. To be noted, a G550 that is younger than five (5) to seven (7) years would alter these price estimates. While Lee's availability is limited right now, I would be happy to try and answer any questions you have. Regards, Tom ;1'cid:image001.png@O1CF3 4A0.8A82C0E0 Thomas W. Mitchell I Executive Vice President 380 Hanscom Drive Bedford, MA 01730 Direct I Mobile E-mail: www.essexaviation.com EFTA01052627