Slice of luxury 10.indd

A slice of luxury
An independent report from Special Report Publishing exclusively distributed in The Sunday Telegraph
30th March 2008
THE WORLD’S MOST EXCLUSIVE HOLIDAY
HOMES SHARE THE SAME ADDRESS:
www.d-h-h.com
Corsanico, Tuscany
Beaver Creek, Colorado
86ft Motor Yacht
2
Contributors
Aaron Waddell
Freelance journalist
Susan Kime
Freelance luxury journalist
INTRODUCTION
Fractions of fun
You can live like an oligarch, for some of the time. Plan your fractional fun with care and you can
enjoy a super-rich existence at super value
Publisher
Miles Allen
Editor
Andrew Baker
Design & Production
Benn Withers
Print & Distribution
The Telegraph Media Group Limited
For more information about future
reports distributed exclusively with
the Sunday Telegraph contact Special
Report Publishing on 020 7629 7080
www.specialreportpublishing.com
Copyright Special Report Publishing ©
Material contained in this report is for
general information only and is not
intended to be relied upon by individual
readers in making (or refraining from
making) any specific investment
decision. Appropriate independent
advice should be obtained before
making any such decisions.
Special Report Publishing does not
accept any liability for any loss suffered
by any reader as a result of any
decision.
E
veryone would love to live like
a multi-millionaire: we all crave
the holiday homes, private jets,
yachts, prestige cars and designer knickknacks enjoyed by the super-rich.
Unfortunately, such desires are
frustrated by everyday expenses. The
cost of ordinary living seems to rise
on an hourly basis, and although the
official inflation rate only crept up to 2.2
per cent in January the true expenses
of life seem to be constantly increasing
thanks to, among other factors, soaring
tax bills, rising housing costs and
mounting utility bills.
Predictions of an economic meltdown
proliferate, and environmental concerns
are rife. Many reformed ultra-consumers
are looking to spend less and live more
while boosting their green credentials.
These cash-rich, time-poor individuals
are addressing their conspicuous/cooperative consumption balance. For
such individuals it is no longer simply a
case of blindly purchasing to satisfy their
consumer desires. They are considering
experiential reward, financial outlay
and environmental impact.
People lust after the über-luxury goods
previously only available to the ultrarich, but they wish to dip into and out
of the experiences rather than commit
themselves to full ownership.
Daniel Nissanoff, author of Futureshop,
told us that: “Today, more and more
people define themselves by the social
networks they belong to (or aspire to
belong to), both online and offline.
Fractional ownership is becoming an
increasingly popular gateway to reach
these coveted networks and is redefining
how savvy consumers efficiently access
status and the necessary ‘belongings’ to
‘belong’.”
This shift has led to the rapid rise in
the popularity of fractional ownership
and asset sharing, identified by J
Walter Thompson, the fourth-largest
advertising agency brand in the world,
as a major trend of 2008.
A recent PricewaterhouseCooper study
on behalf of The Ritz-Carlton Club,
Interval International, and Starwood
Vacation Ownership, found growing
awareness of the fractional property
market. They found that almost one-half
of affluent US households are familiar
with fractional ownership and one-sixth
may purchase within five years. The
study reveals that 41 per cent of affluent
US households have heard of fractional
ownership, and that one-sixth of these
households indicate they may consider
purchasing at a fractional ownership
resort within the next five years.
members and assets, so there is no
investment potential in this model.
One man who has closely followed
the growth of fractional ownership
in the UK is Piers Brown, founder of
the Fractional Life brand. Launched
in December 2006, the company has
quickly become regarded as the most
comprehensive reference site for
everything “fractional”.
Marque II
You can now own a fraction of just about
anything, from a Portuguese holiday
home, to a chunk of a film production
and even a bit of a handbag.
“People want the very
best for less. Fractional
ownership has got both
covered.”
But what is fractional ownership and
asset sharing? The former is the concept
of dividing an expensive asset into
percentage shares and selling those
shares to individual owners. Each person
who owns a fractional share then gets a
relative percentage use of the asset, with
a management company handling the
asset and fractional owners paying fixed
fees for this management, sometimes
in addition to variable fees for usage.
Fractional owners can benefit from
capital appreciation although, on the
flip side, may suffer from depreciation.
According to Brown, “It’s clear people are
becoming more intuitive towards their
luxury spending and questioning the
value of whole ownership. Quality time
is becoming increasingly short within
people’s daily lives, and a lot don’t
want the hassles of whole ownership
of many luxuries these days. There’s
a growing tendency to invest more in
entertainment, experiences, discovery
and life. It’s not what you have, but
what you do that makes you ultimately
happy.”
For markets that do not traditionally lend
themselves to fractional ownership, such
as those involving rapidly depreciating
assets (for example, prestige cars), the
asset-sharing model is utilised. This
generally involves a membership fee
and, sometimes, a further usage fee,
allowing the member access to the use
of the assets, e.g. a fleet of supercars.
There are no ownership links between
The website www.fractionallife.com acts
as an online “fractional superstore” and
since launch has grown to list over 300
fractional and asset-sharing companies.
After a successful consumer Fractional
Life Expo in August 2007, the company
is gearing up for another next month in
the heart of the City of London, as well as
a fractional property trade conference
later in the year.
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What do 60 chairmen, chief executives, corporate directors, investment
bankers, lawyers, accountants, private equity partners, entrepreneurs and
management consultants all have in common?
They all own a ‘Slice of Luxury’, they’ve all joined
The Hideaways Club.
“ Fractionalisation is becoming
the most financially astute
way to purchase and enjoy
overseas property.”
Above: Dar Hasnaa, Marrakech, Morocco
Far left: Gran Vista, Majorca
Left: Chalet Soleil, Chamonix, France
The Hideaways Club, Europe’s leading equity residence club, offers its Members ownership, investment and usage of a selection of luxury multi-million Euro
properties, all of which are fully maintained and serviced with UK and Local Concierge and located across Europe and the Mediterranean. Current locations
include Italy, France (2), Morocco (2), Spain, Portugal, Switzerland (2), Majorca (2) and Turkey (2).
Investment from £133,000 to £200,000 for a premium share.
For more information, please visit our website www.thehideawaysclub.com or call us on +44 (0)20 8387 1305.
The Hideaways Club, 121 Sloane Street, London, SW1X 9BW, UK
©2008 The Hideaways Club. The content of this promotion has not been approved by an authorised person within the meaning of the Financial Services and Markets Act 2000. Reliance on this promotion for the purpose of engaging in any investment activity may expose
an individual to a risk of losing all of the property or other assets invested. Membership is only for self-certified sophisticated investors or certified high net worth individuals.
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5
FRACTIONAL PROPERTY
Holiday homes: the sensible solution
Most of us only have a few weeks’ holiday a year, so there is little point paying for a full-time foreign home. Fractional
ownership can offer a glamorous destination at a reasonable price
W
e can all dream of
owning a house in
a warmer climate,
a mountain chalet, perhaps,
or a beachside cabin. But the
practicalities of owning an
overseas property and paying
for all services and maintenance
twelve months a year when it
can only be visited for a few
weeks are enough to put off
most potential purchasers.
and owning a superior quality
holiday home. This is not just
the “poor-man’s” choice but
also the smarter choice, even for
those who would traditionally
plump for the outright purchase.
The more mature US fractional
market is indicating to the way
the UK market is likely to go, so
it may be illuminating to look
at worldwide growth from a US
perspective.
With fractional ownership,
because you are only buying a
part-share of the property, you
can afford to buy something
much grander than you could
ever fund outright. In effect, you
are spreading your investment
Few industries have been
fortunate enough to grow
nearly four-fold in five years,
and with no end in sight. But
the shared residence industry
has accomplished this feat in a
very short time. In 2003, it was
“With fractional ownership, because
you are only buying a part-share of the
property, you can afford to buy something
much grander than you could ever fund
outright”
a £250m industry. In March
2006, it was a £1 billion industry,
and by the end of 2008, the
prognostications are that it will
surpass the £1.2 billion mark.
The upward mobility of the
industry has been fuelled at least
in part by the upward mobility
of the population it serves:
mainly, but not exclusively,
Boomers. Boomers, according to
Money magazine, will own £9.8
trillion in assets by the time the
last of the children born in the
post-second-world-war baby
boom turn 55 in 2020. That is
plenty of money to purchase
Raising the Bar on Quality
the growing choice of Private
Residence, Destination and the
new Lifestyle/Experience Clubs
that we will discuss in the next
section.
Back in the UK, “Potential
purchasers are clearly attracted
to having access to what are,
in many cases, luxury second
homes without the cost burden
of all year round ownership,”
according to Paul Stewart, Tax
Director at KPMG.
“We are seeing an increasing
number of new fractional
ownership projects particularly
in relation to property,” Stewart
said.
“Indeed, it is fair to say that from
a tax perspective, fractional
ownership interests in property
give rise to interesting challenges
and opportunities for developers
and potential purchasers.”
Fractional properties come in
many forms around the world,
ranging from condominiums and
hotel suites to cottages or even
single-family homes located in
prime tourist locations.
With a diverse fractional
ownership portfolio investors
can enjoy their leisure time in
the sun and snow across the
globe, capitalising on holdings
through the seasons.
A brief look at some of the legal issues
associated with fractional ownership
Part of the appeal of fractionals is that, on the face of it,
they offer completely hassle-free property ownership.
It’s easy to be seduced and therefore it is important that
legal and accounts advice is actively sought and adhered
to. We spoke with Eric Gummers, a corporate partner
at London law firm Howard Kennedy where he heads a
hospitality and leisure group with extensive expertise
in the legal issues associated with fractional and share
ownership.
Usage is at the heart of having a fraction. The arrangements
for usage need to suit your desires, balanced with
the desires of other fraction holders. In looking at the
marketing materials for a fraction, keep in mind the old
adage “if it seems too good to be true...”
PORTUGAL
SCOTLAND
De Vere offers fractional
ownership in the Colquhoun
Mansion House, situated just
a few yards from the bonny,
bonny banks of Loch Lomond.
two restaurants, two bars, 15
treatment rooms, a swimming
pool, a cycle track and a nature
reserve.
Located within Scotland’s first
national park, yet only a short
drive from Glasgow airport, this
peerless accommodation can
be reached in just a few hours
from central London.
“A
fractional
ownership
purchase here raises the bar
above timeshare in that it’s a
much smoother sales process
focused on exemplary service,”
comments Douglas Knight,
director of sales at De Vere.
Facilities include a spa and
golf clubhouse to go with a
championship golf course
designed by Doug Carrick, who
previously was responsible
for creating what are regarded
as the two finest courses in
Canada.
Apartments
within
the
Colquhoun Mansion House are
available through fractional
ownership, providing full twelve
weeks ownership each year as
well as privileged membership
of the golf club and spa. Prices
start at £199,000.
Oceânico Prestige Fractional
will initially be available at
Oceânico’s Vilamoura Golf &
Garden Resort in the Algarve
and Royal Óbidos Spa & Golf
Resort on the Silver Coast
north of Lisbon. But ultimately,
ownership opportunities will
include its new two-course
Amendoeira Golf Resort in the
Algarve and Little River Golf &
Resort in North Carolina, USA.
The beautiful four-bedroom
villas, divided into eight
fractions, all come with the full
Prestige package and represent
a lifestyle purchase. Occupancy
is for six weeks of the year, with
swap options of two one-week
periods to other Oceânico resorts
around the world.
As well as the golf course,
the spa resort will feature
www.deverefractional.co.uk
(01389-755625)
Owners also become members of
a Residents’ Club, allowing them
ownership of one property but,
as a member, giving them the
opportunity to book a holiday in
any similar property at any time
of the year, on a first-come, firstserved basis.
www.oceanicodevelopments.
com (0871-9903388)
Oceânico also offers fractional
ownership through its Stepping
Stones scheme, which won Gold
at the Fractional Life sponsored
2007 Homes Overseas Awards
for Best Fractional Purchasing
Solution. Available in quarter
and twelfth share options,
properties are available at
Oceânico’s beautiful resort of
Vila Baía in Praia da Luz and
the fabulous Amendoeira Golf
Resort in the district of Silves, in
the Algarve.
As a fraction owner, you will wish to see that there is an
orderly aftermarket and to understand any restrictions
that may apply. Some companies provide for buy-back
provisions, such as repurchase after a certain number of
other sales. Look into taxes on purchase and taxes on sale.
Rental income derived from your fraction will be liable to
tax and is required to be included on your tax return.
[email protected] / www.howardkennedy.com
COMMENT
From An Oceanico Stepping Stones property owner
David Lewis, who owns a quarter share at Oceanico’s Vila Baia
resort, said: “We were looking for a property in Portugal, but the
initial investment and on-going costs of outright ownership
concerned us. When we heard about the Stepping Stones
purchasing scheme it seemed perfect for us. Twelve weeks is all
we need, giving us a base in Portugal and a strong investment
for $46,000. Oceanico was fantastic in guiding us through
the purchase process, which was very easy, and we are now
enjoying our own slice of Portuguese luxury with our children.”
6
SOUTH AFRICA
Foreign Property Ventures Ltd (FPV)
specialises in unique worldwide
property investments. FPV is a UKregulated
investment
company
currently offering their clients a more
secure way of investing through
fractional ownership, by way of
individual deed. Darren Fields, the
company’s Managing Director, told us
a little about their projects: “Currently
FPV are focusing solely on a unique
South African development. We have
exclusive rights to a unique investment
in a truly innovative development on a
private, natural wildlife reserve in the
most popular tourist destination of the
country, the acclaimed Greater Kruger
National Park region.”
FRACTIONAL PROPERTY
Holiday homes
Moditlo Eco Lodge is an exclusive ecofriendly design concept furnished to a
five-star standard offering spectacular
views from all its properties.
www.foreignpropertyventures.com
(0208-387-5492)
ITALY
Nestled in the rolling hills of Tuscany is Borgo di Vagli, a
14th century medieval hamlet that captures the heart
and soul of the Italian countryside, offering a fully
restored 14th-century property available for fractional
vacation-home ownership. Fractional Ownership ‘in
perpetuity’ is available from only €60,000.
www.borgodivagli.com (+39-0575-619660)
a pl a c e w he r e yo u be long
fr om GBP 82,000
Owning an impressive second home on The Crescent of Dubai’s Palm Jumeirah is easier than you think. The Kingdom of Sheba offers you
a wealth of ownership options including fractional ownership at the luxurious Fairmont Heritage Place, the first of its kind in the region.
UK T: + 44 (0) 20 7034 3050 Dubai T: + 971 4 404 3424
E [email protected] www.kingdomofsheba.com/fhp
This is not an offer to sell where prior registration or licensing is required.
7
FRACTIONAL PROPERTY
Fractional golf
Leisure time and golfing have been bedfellows since the
invention of the first club, so it is to be expected that there are
many fractional properties that include golf as a key draw
Golf course at Roserrow
The Markers Club
The Markers is a private
and invitation-only themed
destination club, devoted to the
greatest golfing experience. At
present, there are 36 residences, in
12 prime golf locations, including
Archerfield, Scotland, Pinehurst
North Carolina, the Big Island of
Hawaii, Daufauskie and Kiawah
Island.. With a membership cap
of 325 and a 9:1 member-tohome ratio, members are allowed
three weeks per year guaranteed,
and more time if the space is
available. A Preview Membership,
unique in this field, allows for
a full year’s membership with
no strings attached, for £9,000.
Full membership, invitation
only, ranges from approximately
£73,500 to £185,000.
www.themarkersclub.com
(001-800-745-0065)
Roserrow Golf and Country
Club
A haven set among a majestic
panorama of rugged cliffs and tiny
coves near Rock, North Cornwall.
Spa at Roserrow
Designed to attract players of all
abilities, the golf course combines
relatively gentle holes with more
demanding challenges. On site
is a Club House with lounge bar
and restaurant, a golf shop and a
resident professional to help with
advice and tuition.
beautifully furnished, luxurious
accommodation, all available - of
course - on a fractional basis.
www.roserrow.co.uk
(01208-863000)
But it is not all about golf. The
relaxing 20m indoor, heated
pool with adjacent spa and
steam rooms is there for your
unlimited use and enjoyment. So
purchasers can enjoy golf, tennis,
sailing, biking, surfing, indulgent
relaxation in the beauty salon,
strenuous exercise or a mixture
of all. And at the end of a glorious
day, they can return to their
Other fractional opportunities
in this area include the earlier
referenced Oceanico and
Pestana Golf (for details visit
www.pestanagolf.com)
Stunning views from Roserrow
Where the properties are
THE HEART
and
www.everlandslife.com
the experience
THE SOUL
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Oceânico Prestige Fractional – unparalleled luxury at a fraction of the cost
Indulge yourself in the comfort of a stunning 4 bedroom villa; access to executive car transfers; use of a Sunseeker luxury cruiser;
and membership of seven Algarve championship golf courses.
Enjoy 8th share ownership in this luxury lifestyle – and take a balanced approach to your life.
Oceânico Prestige Fractional is available at Vilamoura Golf & Garden Resort in the Algarve and Royal Óbidos
Spa & Golf Resort on the Silver Coast just north of Lisbon.
Join us for the launch:
The Oceânico Group Fractional Life Expo 2008
Stand 5 and 6 Broadgate Circle, Broadgate Event Venues, London
Monday 28th – Wednesday 30th April
www.oceanicogroup.com
UK 0871 990 3388
PT +351 282 320 688
9
FRACTIONAL PROPERTY
An intriguing
global assortment
Private Residence Clubs, Destination Clubs and Experience
Clubs offer different variations on the fractional ownership
model, as Susan Kime explains
Everlands property: The Point on Lake Saranac in New York state
T
he industry defines
shared
ownership
as consisting of the
fractional interest, private
residence club (PRC) and
destination club segments.
Fractionals and PRCs both
typically sell deeded ownership
in shares or fractions of vacation
homes. They differ in usage, price,
quality of product and degree of
services and amenities.
The industry uses price as a
differentiator, with fractionals
selling for less than £500 per
square foot and PRCs for more.
Destination clubs typically
sell non-deeded memberships,
with some being equity-based.
A luxury fractional is the same
definition as a Private Residence
Club, but selling for more than
£500 per square foot.
A Destination Club is one that
promotes the resort destination
and vacations as its main foci.
This club model is of two types:
the non-equity club, which
is based on the country club
model: that is, the member pays
its fees directly to the club itself,
receives a membership bond,
and uses the club residences and
amenities. Exclusive Resorts,
Ultimate Resort, Quintess are
examples of this type.
can be an equity destination,
non-equity destination or even
a PRC.
The other type, the equity-based
Destination Club is one where
the member buys a share of the
club. BelleHavens is an example
of this type.
Although Everlands is at
present the only Experience
Club per se, other clubs have
experience components to their
clubs: Exclusive Resort’s Once
In A Lifetime Experiences, and
Quintess’s Q Experience tiers are
examples.
An Experience club is one that
promotes the lifestyle experience
as its main focus. The club model
Here is a diverse assortment of
the clubs proving to be the most
intriguing and popular.
Experience Clubs
Private Residence Clubs
EVERLANDS
FAIRMONT HERITAGE PLACE
THE CASTELLO DE CASOLE
David Burden, president of
Timbers Resorts, the Carbondale,
Colorado-based developer of
Castello di Casole, describes what
his clients had been looking for
in an Italian retreat: “Luxury and
comfort with today’s electronics,
but at the same time with a very
traditional Tuscan feel.”
The Tuscan feel is everywhere,
as the Castello is located on over
4000 acres of Italian countryside
with working vineyards and
working olive groves. The Villas,
built around the Castello on
picturesque, hill property are
on a deeded two to three acres,
with a further 20-30 acre buffer
zone providing ample space and
privacy. The current pricing of
each villa ranges from €345,000
(approx. £265,000) for a 1/10th
interest in a 3 bedroom villa up
to €620,000 (approx. £477,500)
for a 1/10th interest in a 4bedroom farm. In addition, a
medieval hilltop castle is being
restored into a boutique hotel
and spa. The hotel and spa are
under construction and should
be completed by late summer/
early autumn 2009.
Ó www.castellodicasole.com
(0039-0577-967511)
Fairmont Heritage Place is the
luxury fractional residence
dimension of the Fairmont Hotel
brand. At present, there are six,
all selling on average 1/10 share
in the £100-200,000 range: the
residences at the Acapulco
Diamante, on San Francisco’s
historic Ghirardelli Square, at
Southampton, Bermuda, and the
famous Franz Klammer Lodge in
Telluride, Colorado.
The newest under construction
are the Palm Island Jumeirah in
Dubai, and in South Africa. The
former, called the Palm Island
Kingdom of Sheba residences,
are 51 fractional ownership
homes, being sold in 1/10th
shares, and the latter is the new
Fairmont Heritage Place on
the beachfront in South Africa,
called the FHP Zimbali, selling
18 fractional ownership homes
in 1/13ths, starting at £55,000.
Those member/owners who
purchase a fractional residence
at any of the locations can
exchange some of their weeks to
stay at other Fairmont Heritage
Places.
www.fairmontheritageplace.
com (0207-034-3050)
We wanted to do something
that has never been done
before” said Ken May, CEO of
Everlands, and we think they
have succeeded. “We don’t like
the words ‘destination club’,
but are instead the first true
experience club.”
Everlands Members have
unlimited access to 45 iconic
places of great natural beauty.
Some of these properties
include The Point on Lake
Saranac in New York State,
Lake Rotoroa Lodge in New
Zealand and Bristol Bay Lodge
in Alaska.
The global portfolio will
ultimately include such
outstanding properties as a
wild partridge habitat in Spain,
an estancia in Patagonia, game
reserve in Kenya and private
island in the Seychelles. The
Club has also established a
Conservation Foundation that
will award an annual prize to
individuals who demonstrate
innovation and daring in
conserving nature.
Each Member pays a one-time
Membership fee, as well as
annual Club dues. Everlands
is owned entirely by its
Members, who own a pro rata
equity interest in the Club
Membership Corporation.
Members co-own the land,
buildings, and all real property.
The current Membership fee
is £250,000 required by each
Member upon acceptance
into the Club.
www.everlandslife.com
(020-7736-9726)
10
Destination Clubs
THE HIDEAWAYS CLUB
I
n June of 2007, The
Hideaways Club was
launched, offering more
Eurocentric vacations and
destinations than most other
American based clubs. “We
did this for a reason,” explains
Stephen Wise, the founder and
CEO of the Club.. “We know the
European vacation patterns and
the places where many go for
their holiday. Our destinations
and residences are those
Europeans know quite well.
“The Algarve, Provence, a Villa in
Kalka, Turkey, a stone villa near
Pisa, in Tuscany, a large property
in Marrakech, with a view of the
Atlas Mountains in North Africa.
Our members love these places,
as many know the history and
culture of these areas very well.”
The Hideaways Club is an
equity destination club, that
allows members to buy shares
in the club itself, and share in
the appreciation of the real
estate. There are two levels
of membership: Premium
and Lifestyle. Both categories
allow members access to the
“We are doing well,” says Wise.
“We will be looking at other
unique properties in the near
future: some in Doha, Dubai,
Venice, Crete, and on some
islands off Croatia. We love the
historic and unusual places that
our members and our potential
members find most intriguing.”
www.thehideawaysclub.com
(020-7664-8860)
Nigel and Wendy Smith joined The Hideaways Club in May 2007
Wendy said: “Membership of The Hideaways Club comes without the associated issues of
owning a property abroad; plus you have a variety of locations to choose from, and the ever
expanding portfolio means there are always new places to see.
“The concierge is extremely helpful, and there is no need to worry about the language barrier.
The luxurious standard of the properties means that there are no nasty surprises on arrival.
The club send emails to remind us about the holiday and travel details, stock the fridge and
organise car hire, all which takes away the hassle of organising holidays with four children...”
Luxury Ski Chalet in Chamonix
DISTINCTIVE HOLIDAY HOMES
GROUP RCI
Group RCI, part of the Wyndham
Worldwide family of companies,
is the global leader in non-hotel
leisure accommodation. Gregg
Anderson, Vice President, Global
Product Management, Luxury
Sector, comments: “Fractional
is a growing trend worldwide
with over 250 fractional resorts
in North America alone. Our
typical consumer has the money
to potentially buy outright, but
instead they value flexibility
and choice, as provided by
the Registry Collection luxury
exchange programme. Registry
Collection is now in its sixth
year, and has grown from 11
affiliates with 50 members, to
full property portfolio. The
Premium membership deposit
is approximately £200,000 with
£12,000 annual dues, and the
Lifestyle is £133,333 with annual
dues of £8,400.
100 affiliates and over 25,000
members to date. Growth
experienced in North America,
Canada, Mexico, and South Africa
has spread to Europe with the
likes of Borgo di Colleoli, Borgo di
Vagli and Villa Petrischio already
part of the scheme. The UK/
European marketplace is gaining
momentum as the consumer is
offered more choice in terms of
resort exchange and currently
the Caribbean/Barbados is a
particular favourite with UK
members.“
For more information visit
www.theregistrycollection.com
(0845-6086352)
A comment from Ward Woods of
Regency Resorts
Ward Woods is CEO of Regency Resorts, which owns The
Regency Country Club, a Balinese-themed fractional-ownership
property in southern Tenerife. The property is an associate of
The Registry Collection, a luxury holiday exchange platform
backed by Group RCI. Woods said: “The advantage of fractionals
over wholly-owned luxury holiday properties is that fractional
owners only pay for the time they plan to spend at the property..
The Registry Collection is a welcome addition. It offers
purchasers a choice of some of the world’s finest properties
and locations, together with VIP concierge services. We find it
presents as a very persuasive reason to buy.”
“As I have lived in Australasia
most of my life,” says Nick Wood,
the founder and CEO, “I wanted
my club to have a global vision,
and certainly global properties.
We have got our wish! Ours is
the only club at present with
residences in New Zealand,
Australia, and in the Yasawa
islands in Fiji. Our many other
residences are unique also – just
as two examples, we are the only
ones with a chalet in Megeve,
near Chamonix in France, and
on the Mediterranean side of
Tuscany, with two side-by-side
Villas in Corsanico, near Pisa,
and Portofino.” Launched in
June of last year. DHH has made
remarkable strides in creating a
distinct global dimension to the
destination club field. It has also
been quite successful, due in
part to its wide range of member
pricing. Individual membership
plans range from £30,000 to
£150,000, with corporate plans
ranging from £95,000 to £176,000
depending on member usage
needs. Recently, and again an
unusual move in the industry,
DHH has lowered its pricing,
due to its member-centric focus.
In addition, DHH has multiple
service amenities – strategic
alliances with BMW, Bombardier
SkyJet and Quintessentially, a
luxury concierge service. The
last is available to members 24/7,
whether they are in residence or
not.
www.d-h-h.com
(0800-1583668)
SOLSTICE
At a moment when the shared
residence industry is growing
exponentially,
with
the
destination and private residence
clubs becoming a new part of
the new luxury vernacular, the
Solstice Collection is the only
high end (membership deposits
between £315,000 to £970,000)
and seasoned Destination Club,
reflecting the original vision of
its founder, Graham Kos.
“My vision is simple: it lies in
the melding of three related
but too often, diverse elements:
combine a significant cultural/
vacation destination, with an
architecturally
significant
homes and interiors, and
positive, memorable member
experiences.”
This
vision
became the basis for Solstice
Collection, a Destination Club
that, at the time of writing,
owns 12 homes plus a 90 Foot
Dover yacht. The destinations
and the residences underscore
Solstice’s elite exclusivity: in
Paris, a pied-a-terre, on the Ile St.
Louis, in Florence, a villa on the
Piazza Signoria, whose facade
was created by Michaelangelo,
a Basque-inspired residence in
the mountains above Telluride,
Colorado, a beach house at St.
Barts, a restored villa in the
vineyards of Napa, two villas in
the Warapuru, in the Amazon
Rainforest, and a new ski chalet
in Verbier, Switzerland.
www.solsticecollection.com
(001-480-240-2370)
EXCLUSIVE RESORTS
At the time of writing, Exclusive
Resorts has a 75 per cent market
share in the Destination Club
industry. By the end of 2007, ER
had a portfolio worth more than
£500 million, with over 3,000
members.
There are more than thirty five
destinations, with more than
350 homes in those areas. By
any standard, they have been
greatly successful. With an
average value of £1.5 million,
each residence combines the
size and elegance of a private
home with the services and
amenities of a luxury resort. The
club has achieved a satisfaction
rating of 95 per cent among its
members after providing more
than 50,000 vacations in less
than five years. Last April, the
company inaugurated the “OnceIn-A-Lifetime Experience” tier to
their club, where members could
travel to more exotic climes:
from Bhutan to the Galapagos,
summer skiing in the mountains
of Patagonia, to an Antarctic
expedition at sea, to name
just a few. The membership
pricing ranges from £63,000 to
£225,000 depending on usage
needs. Membership levels vary
depending on membership level
and usage.
www.exclusiveresorts.com
(020-7101-7911)
FL_Expo_2008_telegraph_125x157.pdf
14/03/2008
11:31:13
11
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Own a Tuscan Country Home from t 60,000
guaranteed!
THE UK'S LARGEST CONSUMER FRACTIONAL
OWNERSHIP AND ASSET SHARING EXHIBITION
AIRCRAFT & JETS ART BOATS & YACHTS CLASSIC CARS HELICOPTERS VINEYARDS & WINE
CORPORATE HOSPITALITY DESTINATION & PRIVATE RESIDENCE CLUBS HANDBAGS HOTELS
LIFESTYLE LUXURY VEHICLES PROPERTY SPIRITS & CHAMPAGNE SPORT SUPERCARS RACEHORSES
platinum sponsor
gold sponsor
silver sponsor
bronze sponsor
show partners
We are delighted to offer a limited number of
Fractional Ownership
opportunities at CNBC’s International award winning 14th century
Hamlet Borgo di Vagli, located near the popular medieval town of
Cortona (only 40 minutes from Perugia airport). Owners receive a
Fractional interest, in perpetuity, to the Hamlet's fully furnished
residences - with virtually unlimited access.
Borgo di Vagli
www.borgodivagli.com ~ [email protected]
Ph. +39 0575 619660 pricing subject to change without notice
Live among the vineyards in Tuscany,
Italy, at Castello di Casole, a 1,700
hectare private estate, untouched
except by history. Commanding the
most important hilltops are epic
Tuscan farmhouses, each painstakingly
restored. These residences are remarkable indoors
and out... graceful expressions of art and architecture.
There is a legendary castle, soon to be a five-star
boutique hotel and spa in the grand European
tradition. We invite you to be a part of this
remarkable experience either as a whole owner
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or through our residential interest programme.
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or visit www.castellodicasole.com.
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12
CARS
stevehallphotography.net
Supercars at a
super price
Anyone with a taste for speed would love to drive a Ferrari.
But they are not all that suitable for the school run. So
why not get you hands on a hot rod for the weekend?
A
ll of us would love to
say: “Let’s take the
Lamborghini”. But for
most of us this sentence remains
just a fantasy. The fact is that
most petrolheads don’t need to
own a fleet of fascinating cars,
but they would all like the thrill
of driving them. The solution
is car-sharing clubs. More than
28,000 Londoners belong to such
organisations.
With costly assets to maintain,
car clubs tend to adopt the assetsharing model. The asset-sharing
model also allows for a greater
range of vehicles to be purchased
by the club. The basic model
is that a membership fee buys
you a number of points. The
amount of points used depends
on the category of the car (more
points means more desirable
and expensive metal), whether
you want to drive on weekdays
or weekends (more points for the
latter) and the time of year (fewer
points for the winter months and
more for the summer). How your
points are used is down to you,
but generally between 35-50
days’ use per year is the norm.
You will obviously get fewer
days if you want the top-ranked
vehicles only for weekend use
during the summer, and more if
you opt for off-peak weekdays in
lower-band cars.
One thing to be aware of is that
not all car clubs are created equal.
They are separated into two
basic categories: Classic Cars
and Supercars. Classic clubs
offer a blend of retro and modern
vehicles, including Classic Car
Club (www.classiccarclub.co.uk)
and Parc Ferme (www.parcferme.co.uk). Supercar club fleets
offering performance, prestige
and supercars include the
likes of P1 International (www.
p1international.co.uk); écurie25
(www.ecurie25.co.uk); Marque II
(www.marquetwo.co.uk), ClubGT,
and the recently launched
Club Velocita (www.clubvelocita.
co.uk) amongst others.
CASE STUDY: MARQUE II
We speak to Graham Beswick, founder of London-based supercar club Marque II.
“Our members tend to be discerning individuals, drawn from a variety of backgrounds, from
professionals to celebrities. They tend to be looking to enjoy the driving experience, rather than the
‘flash’ of driving a premium sports car and our car selection reflects this. Currently available vehicles
include an Audi R8, a Maserati Gran Turismo and the new Jaguar XKR, among others. We offer a
customisable service based on our members’ needs. Aside from the full package, we offer a weekday
only package, an international membership for frequent visitors to the UK, which includes an airport
meet-and-greet service. There is even a half membership to allow people to sample our service before
opting for full membership, and a special ladies-only package.”
“The service is designed to be hassle free. Marque II will even pay your congestion charge if you come
to collect from us, and at additional cost we can deliver and collect anywhere in Europe. And don’t
forget that access to our fleet is 24 hours a day, seven days a week.”
www.marque2.com (020-7582-2223)
13
PLANES
Let your imagination take flight
The private aviation market was one of the first to discover the benefits of fractional ownership. Now there are a variety of
options available to would-be passengers
P
rivate aviation is growing ever
more popular for the cash-rich/
time-poor traveller. Benefits
include flexible schedules, a slick airport
process, and additional security. But is
private aviation an option open only to
the super-rich? Not if you are travelling
fractional.
There is a wide range of different fractional
options. Firstly, there is Fractional
Ownership. In common with other
fractional models, your annual use of the
aircraft is consistent with your share size.
At the end of the contract period, typically
around five years, you sell your share back
to the management company based on
the current market value of your plane,
less a remarketing fee. In addition to your
share, you pay a monthly maintenance
fee for the upkeep of your plane and crew,
and a separate hourly charge for your
flight time.
Secondly, there is a Fractional Card &
Membership Program. This is an assetsharing rather than fractional scheme
so there is no actual ownership involved.
Instead, you purchase “air-time” and when
you have used your allocation, you simply
purchase another card.
One distinction in card programs is the
sourcing of the planes and crew. Fractional
cards provide you with access to the same
aircraft and crew that fractional owners
receive. Charter cards draw from the wider
array of charter operators. The structure of
the program itself is based on either Hour/
Plane or Debit models. In the latter, you
pre-pay, and each trip is deducted from
your card balance; and with the former
you pay based on occupied flying hours
(ie, excluding preparation of the craft) that
are debited from your account in a similar
fashion to pre-pay.
Fractional aviation providers include:
www.lufthansa-private-jet.com (+491802-993300), www.avolus.com (08454501504), www.europeanbusinessjets.
com (020-7763-7100), www.city-flyer.
co.uk (0871-7323626), and www.
airshare.aero (01797-322208).
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M E M B E R S H I P � � � � �� �� � � � � �� � � � � �� � � � � � �
The pinnacle of style
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UK T: + 44 (0) 20 7034 3050 Dubai T: + 971 4 404 3424
E: [email protected] www.ifayoc.com
14
Own a Beautifully Appointed
Holiday Residence in Cornwall from £60,000
The highly respected developers of Roserrow Golf and Country Club estate close to Rock, Polzeath and nearby Port Isaac and Padstow in North Cornwall
are delighted to announce that a limited number of Fractional Ownership opportunities will soon be released for their latest off-plan-on-site project:
The Residence Club. Owners receive a Fractional interest, in perpetuity, to the Club’s beautifully furnished residences, with virtually unlimited access,
plus all the benefits of exclusive club membership to the country club’s facilities and so much more.
“....a stunning 400 acre country club”
“....a truly five-star place”
Golf International, January 2008
Golf Monthly, March 2008
To receive further details and to arrange a discovery visit,
Call Julie today 01208 863000 or visit www.roserrow.co.uk/theresidenceclub.htm
15
LUXURY YACHTS
Floating your dreams
A private yacht is the ultimate potentate’s status symbol. But if you don’t need one every weekend, there are affordable
ways of entertaining your friends at sea
A
number of factors discourage
taking full ownership of your
own boat or yacht. Namely
a high buy-in cost, increasing annual
costs and a depreciating asset that
remains unused for much of the year.
This is the kind of scenario in which
fractional ownership offers advantages:
by reducing your initial outlay and
ongoing expense, while still providing
you with the use of a fully managed
asset as if it were your own. Fractional
yacht and boat ownership offers the
thrill of ownership to those who could
not previously have thought of it; it
also offers a chance to trade up but
similarly for those who have previously
enjoyed a smaller vessel but now want
to experience something larger.
A fractional boat plan offers a realistically
priced means of enjoying time on the
water. As with all fractional plans, you
purchase a share of the asset and are
accordingly allocated an amount of
usage time. This is an ideal way to make
the most of both your time and your
money. An additional advantage comes
in the form of managed maintenance.
Fractional boat plans include a monthly
fee that covers mechanical maintenance
and upkeep, insurance, mooring fees and
valet services, as well as the associated
company administration services.
“Fractional boats really
encapsulates one of the
fractional market’s key
strengths - a variety
of opportunities at a
variety of price points”
Although to many this supplement
will act as introduction, fractional
ownership entered the UK’s 2,500 mile
inland waterways network in1990, led
by an organisation called OwnerShips
(www.ownerships.co.uk), now managing
over 100 luxury narrow- and wide-beam
vessels. With an entry price anywhere
between £2,000 and £10,000, shareowners can typically enjoy three to
six weeks’ cruising each year with an
annual service charge of around £1,000;
and using OwnerShips’ unique “buy
back” facility, it can be as easy to leave
the scheme as it is to join. Mooring
bases can vary annually, from the rural
and industrial scenery of the Pennines
in the north to the picturesque villages
of the Cotswolds in the south.
Luxury IFA boat
Allen Matthews, OwnerShips’ MD,
explains the appeal: “Floating through
England at 4mph is the perfect mix
of activity and total relaxation that is
becoming increasingly popular amongst
today’s holiday seekers.”
If your tastes lean more towards the
exotic, then the IFA Hotels & Resorts
Group Yacht Ownership Club (www.
ifayoc.com) can provide you with all
the facilities of a five-star hotel in a
stunning fleet of luxury vessels. For a
fraction of the traditional cost (Annual
Gold membership of €60,000), you are
guaranteed access to your own personal,
fully crewed and maintained fleet. The
club offers a high-tech fleet, moorings
and berths at exclusive and amazing
destinations in the Middle East, Europe
and the Caribbean.
Fractional ownership is not just an
opportunity for experienced sailors,
as Jonathan Duffy, Managing Director
of SailTime (www.sailtime.co.uk), who
offer luxurious sailboats, says: “We cater
for customers across the range, from
experienced sailors to people who have
an interest in sailing but don’t know
how to get into it. We provide training to
show people the ropes.”
Fractional boat ownership encapsulates
one of the fractional market’s key
strengths: a variety of opportunities at a
variety of price points.
MORE FRACTIONAL
On the fractional fringe
As well as the key fractional markets outlined in this supplement,
there are a number of other areas in which fractional ownership
and asset-sharing is taking hold...
Handbags
These clubs work along similar lines
to a DVD rental website: you pay a
monthly fee, you borrow a number
of items at a time and each time
you return an item, you can select
another. The bottom line is, for
the same or less than the price of
actually purchasing a single top-end
designer bag, you could have access
to every designer’s collections for a
whole year. www.fashionhire.co.uk
Wine
Fractional ownership of a vineyard
usually embraces three key
elements: the sale of a portion of a
freehold vineyard, quality wines
supplied to you direct and also
specially labelled as your own
unique vintage if required.
The good timing of wine purchases,
the professional selection and due
diligence of the wine company,
and the partnership with industryknown experts are all ingredients
which make fractional wine a
great way to enjoy a tipple. www.
wineshare.co.uk
There are an increasing number of
more unusual applications coming
to the fore. Some examples of these
include asset-shared pet ownership
and fractional livestock ownership
(www.numberonepig.co.uk) for the
purposes of providing you with your
own personally selected meat. If
meat eating is not to your taste, you
can buy a share in a Swiss cow (www.
kuhleasing.ch) and have cheeses
made to your own specification,
or even adopt a French Truffle Oak
(www.truffle-tree.com).
Sign up at FractionalLife.com to
hear about the latest fractional
opportunities first.
www.fractionallife.com
16
Be part of it
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Want to be part of it?
Call 01389 755625 quoting ref ST08
or visit www.deverefractional.co.uk
DEV10500 330x254mm.indd 1
21/2/08 11:21:25