The Top 21 Fractional Real Estate Professionals

Transcription

The Top 21 Fractional Real Estate Professionals Of 2010
http://www.fractionallife.com/news_the_top_20_on_2010998.asp
Fractional Ownership News
As the fractional ownership property market enters an exciting stage of its development, Fractional
Life profiles 21 of the industry's big hitters and asks them how they think the fractional sector will
fare in 2010.
Claude Attala, Northcourse
As global managing director of property consultants Northcourse, Claude
Attala has an in-depth understanding of the shared ownership market as
well as the intricacies of Middle Eastern real estate development and
tourism. His company provides advisory, research and sales and marketing
services to developers and investors worldwide, working with both
experienced developers and new entrants in resorts, hotels, timeshares,
fractionals, condo hotels, private residence clubs and destination clubs.
Prior to NorthCourse, Attala served as head of planning and operations at
the Qatar Tourism Authority, and has also held senior level sales and
marketing roles with Rezidor SAS, Intercontinental Hotels, Meridien Hotels and Resorts and
Sheraton.
Attala points to research by the UNWTO which predicts that consumers in 2010 and beyond are
increasingly likely to favour domestic and short haul travel over long distance flights. This, he
maintains will see most European fractional buyers looking at locations within a four-hour flight time
of their permanent home. He also says that the most successful fractional schemes will be the ones in
locations beyonf the reach of traditional homebuilders, which make the most of their surroundings in
terms of natural beauty, sports and leisure facilities, and urban centres.
Gregg Anderson, the Registry Collection
As managing director of exchange network The Registry Collection, Gregg
Anderson provides strategic direction to a team of product managers in
eight regional offices, evaluating partner and affiliate opportunities. He also
sees himself as an ambassador for the luxury shared vacation ownership
sector and is a frequent speaker at industry conferences.
Anderson, who has held positions at Intrawest, ClubCorp The Walt Disney
Company says: “I agree with the financial and development experts I’ve
spoken with that we will see a gradual recovery in the second half of 2010.
Both lenders and buyers will scrutinize opportunities more closely in
regards to location of the project, track record of the developer and project team involved with the
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development. Developers who have 'A’ locations, who have a track record of development success
and are aligned with an experienced team of partners will see a great advantage as we come out of this
financial downturn. More potential buyers than ever will evaluate deals based on usage versus
investment which will put more emphasis on developers delivering a comprehensive amenity package
and choosing the right operator who can deliver the exemplary service this affluent traveling
demographic demands.”
Philip Bacon, HVS
Madrid-based Philip Bacon has more than 25 years' experience in business
advisory services, including a 10-year spell with Price Waterhouse in
London and Barcelona, and positions as financial director for two Spanish
resort development companies. Now at HVS, he launched the company's
Shared Ownership Services for EMEA & Asia division, which specialises
in all forms of shared ownership, from fractional interests to branded
residences, particularly within hospitality-based mixed resort
developments.
Bacon says: “The fractional property business will continue to offer
opportunities to both developers and operators who are looking to take advantage of an increasing
awareness on the part of the customer of the need to achieve true value for money for high ticket
items. We will probably see increased concern over the benefits of speculative real estate investment.
So-called 'time poverty' will continue to be part of daily life but the buying public will also be more
demanding in terms of credibility and the matching of promises made during the sales process with
eventual product and service delivery.”
Robin Barrasford, Barrasford and Bird
Worlwide
Robin Barrasford is managing director of agent and developer Barrasford
and Bird Worldwide. He was one of the first UK agents to realise the
potential of Bulgarian property market and formed his company to bring
this emerging market to the UK and educate potential UK purchasers about
the opportunities in emerging overseas markets. He is a founder member
and board director of the Association of International Property
Professionals. Barrasford is a keen proponent of the fractional ownership
model, and is currently selling fractions in Greece and the UK, with a
French scheme in the pipeline.
“Fractional ownership is a great model but what worries me is that there are a lot of people coming in
to the fractional market who are telling developers to add a 50 to 100 per cent premium to their prices.
Fractional property has to offer value or they are going to give all of us a bad name, and it will be like
the dark days of timeshare all over again. One area I can see really taking off is the up-selling of
fractions to existing timeshare owners – that's a very good idea,” he says.
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Piers Brown, Fractional Life
Piers, founder of Fractional Life, has been involved with fractional
ownership for nine years. After completing an MBA thesis on fractional
ownership, he worked as sales and marketing director for a fractional car
club, before founding Fractional Life.
Piers’ responsibilities include spearheading the on and offline growth of the
Fractional Life brand and raising general awareness of the fractional
ownership concept. He speaks on the subject at conferences around the
world and has made numerous radio and television appearances. Fractional
Life has three divisions: interactive, consumer exhibitions and trade conferences.
For 2010, Piers sees several market trends developing: “Traditional timeshare operators will broaden
their purchasing options with fractional ownership products. With the well publicized success of
Seasons Holidays’ 100% sell out of its Forest Hills fractional development in Spain. It will be no
surprise to see other vacation ownership operators innovating their product offerings to reap similar
rewards into 2010. And as the whole ownership market continues to struggle, developers will
increasingly complement their resort sales with fractional ownership products.” Piers also thinks 2010
could be the year when the first bespoke fractional real estate agencies hit the market.
Christian Jensen Broby, Marriott Vacation
Club International
Christian Broby is chief customer officer and vice president for Marriott
Vacation Club International's activities, covering Europe and Middle East.
He has principal responsibility for ensuring the positioning and strategic
direction of the business lines across all disciplines and leads development
efforts, including project management and analysis for new developments,
in these regions.
Broby says: “The perspective for the fractional and residential club sector
will mirror 2009 levels…and it isn’t pretty! The buyers’ market remains sluggish, in lieu of prolonged
discretionary spending concerns. The ultra-wealthy segment will continue to have the ability to invest
in lifestyle-enhancing additions, with even greater purchasing power and advantages, as exaggerated
discounts and incentives are extended to maintain some minimal level of sales pace.
While the 'upper aspirationals' are forced to become more selective with discretionary lifestyle
spending patterns, developers will be under increased pressure to fund development and commercial
activities, as a result of downward pricing pressure extending into 2012. Prolonged steep discounting
and erosion in margins will affect the eventual economic viability of projects, resulting in an overall
inventory supply side contraction over the longer term. Brand perception and credibility in the market
place will become more important than ever, as the developer’s financial solidity will be on the
forefront of any buyer’s check list.”
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David Burden, Timbers Resorts
David Burden is CEO of Timbers Resorts, a company synonymous with
high-end fractional resorts such as Castello di Casole in Tuscany and One
Steamboat Place in Colorado. Burden describes Timbers, launched in 1999,
as “ground-up developers of some very special resort projects throughout
the world – including the design, local approval, construction, sales and
marketing, as well as in some cases, the operator of these wonderful
properties. We also offer our services in all of those areas of expertise to
certain groups and investors for resort projects where we can make a difference and achieve success
for the owners.”
Burden predicts: “The residence club and fractional properties trends and opportunities in 2010 will
likely follow the settling and shake-up of various markets in 2009 with some well positioned
properties starting to experience momentum as the markets in which they reside start to recover. The
market is very interested in traditional destinations and may gravitate toward residence club offerings
as making more sense than whole ownership. As always though it will first depend on location,
finished product and its operation as well as reputation versus just a great deal.”
David Clifton, Interval International and
Preferred Residences
With more than 30 years' experience of the shared ownership industry,
Clifton has held positions at Hilton Grand Vacations and Welk Park North.
Now based in Dubai, he is managing director for Europe, Middle East,
Africa and Asia for Interval International,responsible for implementing all
business development activities in these regions. These include affiliating
resorts with Interval’s and Preferred Residence’s global networks,
developing and directing all sales and resort marketing strategies, as well as
managing developer/client relationships.
Clifton says: “More consumers, developers, and governments today understand the fundamental
concept of fractional ownership, its key benefits to all stakeholders, and the strong value proposition
that the industry provides to consumers. Additional developers today are embracing the concept due
to the current economic slow down hindering their ability to sell whole units. This has coincided with
enhanced consumer awareness of the benefits of fractional ownership – the appeal of second home
ownership has diminished greatly over the past several years as real estate costs continue to escalate
in prime vacation markets.”
Jerry Cobb, Fractional Ownership
Consultancy
After a successful career in the finance industry, Jerry Cobb came into
contact with fractional ownership through working with resort in the
Western Algarve. He is now CEO of the Fractional Ownership
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Consultancy, offering specialist advice to developers and consumers.
“I still think the market for fractional is huge,” says Cobb. “Despite the
economic downturn, or indeed perhaps as a result of it, ultimately fewer people will want to buy a
property abroad outright and would prefer to know that their costs are shared. This year, we will see
most of the activity in the lower end, with evidence that people are happier to commit £20 to 25,000
on a fractional purchase rather than any more. There is currently some reticence in dealing with Euros
and evidence from our figures shows people are also tending to prefer to buy in their own currency.”
“Fractional in the UK is now taking off. People know what they are dealing with. This market will
grow impressively over the next few years and I predict that by 2011 we will see a return of the
aspirational lifestyle second house purchaser, and from then onwards, fractional is going to boom.”
Steve Dering, DCP International
Steve Dering is the founding partner of DCP International, which pioneered
the world's first residence club – the Deer Valley Club in Utah, which
opened in 1992. At DCP, he evaluates potential residence club projects and
works with developers to structure, market and sell resort and urban clubs
in international destinations.
“More buyers will come into the vacation home market as consumer
confidence slowly returns and pricing is adjusted. Fractional ownership will
lead the rebound. A vacation home is, once again, a lifestyle purchase
rather than an investment, and the inherent logic of fractionals will be magnified by post-recession
practicality. Sales at fractional projects already in the market will increase but buyers will be 'dealdriven' and compelling sales incentives and/or discounting will be required. We saw encouraging
increases in sales activity at several of our projects during the last quarter of 2009. Most 'new'
fractional developments will be conversions of whole ownership condominium projects. However, as
was the case prior to the meltdown, the fractional concept will not be strong enough to overcome bad
real estate or unrealistic pricing,” says Dering.
David Disick, David M Disick Associates
A former Wall Street attorney, a pioneer of the PRC industry, and a regular
author and commentator on the fractional ownership industry, David Disick
is CEO of David M Disick Associates, a strategic consultancy involved
with fractional real estate. He was responsible for the launch of one of the
first ever PRCs, the award-winning Franz Klammer Lodge in Telluride,
Colorado, in 1994.
He is currently involved in creating Club Elysée, a multi–site fractionally
owned Private Residence Club. The club is looking to sell 144 memberships – nine per property
across its sites, which will include locations in the US, the Caribbean and Europe.
In the forthcoming year, Disick predicts the main issues for the fractional industry will be “the
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enhanced opportunities presented by fractional property; including how to successfully raise
financing, and how to market and sell in the current economic and psychological climate. There will
also be an increased focus on the top tier of the market.”
Peter Kempf, Peter Kempf International
Peter Kempf is one of the most experienced individuals in the luxury
international real estate market. Before founding PKI he served as vice
president and Midwest regional director for Sotheby's International Real
Estate, director of international real estate for Christie's Great Estates and
CEO-Europe for DCP International.
Looking forward he says: “Overall, I am optimistic. Sales in Q3 and Q4 of
2009 improved for high-end projects and I think this will continue on a
modest level through Q1 and Q2 of 2010. I think Q3 and Q4 will show
even more improvement. Typical institutional lending for developers will continue to be non-existent
causing further delay in the launch of new product. However, developers with access to private capital
should consider beginning project planning now because by the time they have all their approvals the
market will have returned. The demand will improve in Europe because as the concept becomes better
known, the acceptance of it improves. Also, the economic collapse caused a change in the way people
look at their resources and will now consider fractional, something they never would have done
before the crash.”
Bryan Lunt, Absolute World
Bryan Lunt is CEO and chairman of the Absolute Group, which has seven
subsidiaries – including Absolute Fractional – and more than 850
employees. His company is pioneering fractional ownership in Asia, and
has partnered with brands such as David Lloyd Resorts and yoo.
“It has become apparent to us that in Asia there is huge demand for a
product in the middle - not a vacation club membership and not full
ownership - our clients were starting to look for half shares or
quartershares. The length of fractions has been decreasing and we found
that four week shares are now proving popular,” says Lunt.
“Exchange programmes are important to fractional sales – we have six resorts with The Registry
Collection and a new one coming soon – we see a great business unleashing naturally due to market
demands. We have some extremely wealthy clients who often own several overseas properties, but
still find fractional ownership one of their preferred investments and also preferred vacations. I
believe there is a massive future throughout Thailand and Asia in general for the sales and marketing
of fractional ownership products.”
Lisa Migani, FNTC
Lisa Migani is director of business development in Europe, Middle East
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and Asia with fractional ownership consultants First National Trustee
Company. She has worked for the firm for a decade in Italy where she is
based. Before joining FNTC she worked for vacation exchange programme
Interval International, heading up their Italian operation for seven years.
Migani sees fractional buyers coming from new source markets in the next
few years, particularly Russia: “If you had the right product in the right
location for the Russian middle income market – which is usually
something very different from what the Brits would buy – you could really do very well.” She also
thinks significant numbers of British buyers are looking at affordable fractions at a price level where
financing is easily available. “They're looking at year-round sunny destinations like the
Mediterranean. If you look at Turkey, where you have also got brilliant golf, the cost of real estate
isn't high. Cyprus is another good option for what I call low- to mid-market fractionals.”
Byrne Murphy, Palazzo Tornabuoni
Byrne Murphy has a track record of bringing American business models to
sometimes hostile European markets and making them work. A private
equity investor and developer of real estate, he is co-owner and
co-developer of the Palazzo Tornabuoni residence club in Florence, Italy.
He also has a data centre operation in Scandinavia; an engineering
company in the UK, and other interests in the US.
“The iconic high end projects will be selling again albeit it at a slower pace
than before the downturn, with on-again off-again momentum. It will not
be just 'luxury' which attracts the buyers (there's plenty of that everywhere)
but those projects which provide 'experience'. The more unique the experience the more attractive it
will be to a specific niche of buyers. Finding those buyers though will require more customized and
more expensive marketing. There will be more collaborative marketing efforts as well, whether
through more innovative exchange programs or marketing campaigns amongst projects/developers
that have not collaborated together in the past,” predicts Murphy.
Howard Nusbaum, American Resort
Developers Association
Howard Nusbaum spent ten years with American Hotel & Lodging
Association and was VP of sales and marketing for Janus Hotels and
Resorts before becoming president and CEO of ARDA. In his current
position he ensures ARDA is a vocal advocate for all forms of shared
ownership.
He says the market is in for “ a thorny short term, but the long term picture
is still quite bright with strong demographics for the foreseeable future. The fractional marketplace
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will re-emerge with stronger fundamentals from lessons learned from the credit crunch, pent-up
consumer demand and a savvy purchaser more conscious of wanting to pay for only the slice the of
vacation real estate they have the budget and appetite to enjoy. As an industry we need to take
advantage of this lull in the market place to come together and create a strategic recovery plan that
will support the concept of shared-use as the alternative to second home ownership. Today’s rational
rich want the experiences that come with owning a vacation home but without the headaches and
overhead. Fractional ownership is well positioned once this recovery is underway to capture more
market share.”
Richard Ragatz, Ragatz Associates
A name inextricably linked with fractional ownership, Richard Ragatz is
the founder of Ragatz Associates, a consulting and market research firm in
the global resort real estate industry. The company has worked on more
than 2,500 assignments in 72 countries since its formation in 1974. It
specialises in feasibility analyses, business planning and consumer research
for shared-ownership products, including fractional interests and resort
timeshare.
Ragatz says: “Due to ever-changing global economic conditions, it's difficult to predict performance
of the fractional interest industry for 2010. Most likely, sales volumes will increase perhaps 25 per
cent or more over the down year of 2009. Most of the increase will come from sales of existing
inventory rather than from new start-up resorts. All of our consumer research still finds definite
consumer interest in the concept, especially in comparison with whole-ownership and resort
timeshare. Financing will remain the biggest challenge, including consumer, debt and equity. We will
most likely see more sophisticated approaches to marketing, more innovative products and more
rational pricing. Performance will not approach the record year of 2007, but we should be on an
upward growth pattern again.”
Sarah Rezak Glasgow, Rezak Resort
Consulting
As president of Rezak Resort Consulting, Sarah Rezak Glasgow works
with various clients regarding their proposed fractional interest luxury real
estate offerings. This can include consumer market research, feasibility
analyses, creation of use plans, and/or facilitation of a client's entry into the
fractional business. She also works with various partners to launch
marketing and sales efforts and successfully monitor them from the outset.
A former senior consultant with Ragatz Associates, she says: “I expect that the credit markets will
eliminate or at least significantly postpone most new fractional real estate construction plans in North
America in the short term. I also think that the fractional real estate model needs to be slightly
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adjusted. Developer financing is a new necessity and should be considered when analyzing financial
feasibility of a conversion or existing fractional product. I strongly believe the ability and willingness
over the next three years to hold consumer paper for at least five years will separate the wheat from
the chaff. I still feel strongly that the concept of fractional real estate will be successful in the
long-run.”
Nick Turner, The Registry Collection
Nick Turner is vice president of business development at The Registry
Collection. Has has more than 20 years' experience in the international,
hospitality, leisure and travel sectors. In his current role he is responsible
for growing the Registry Collection brand and overseeing new affiliates in
Europe, the Middle East and Asia.
Turner says: “In 2010 we will see a lot of activity, lots of launches of new
developments to the market. The primary consumer will be that middleincome consumer who has been squeezed over the last few months but is
possibly slightly better off due to low interest rates, but still wants a place
in the sun.”
There will be new product types coming to the market, including lots of conversions where whole
ownership resorts will start selling fractions. We are also seeing a growing number if developers who
are incorporating fractions in mixed-use developments from the planning stage. These projects are in
locations as diverse as Montenegro and North Wales. Sales pace will come down to the age-old
challenge of delivering a really good quality product in a triple-A location, providing a broad range of
amenities on site which consumers can pay for on an a la carte basis.”
Preben Vestdam, Valhalla Associates
Preben Vestdam is the president of Valhalla Associates, an advisory and
management company servicing developers of luxury mixed-use hotel and
resort properties in the areas of development strategy, project feasibility and
implementation planning of leisure real estate products. Valhalla also
implements and manages the sales & marketing operation of fractional
ownership products and Private Residence Clubs.
“2010 will be a very active year for the fractional ownership industry. We
are currently experiencing a growing number of luxury leisure real estate developers interested in
exploring the fractional ownership model as a complement to their whole ownership offering. And
with a further recovery of the financial markets giving access to reasonable project finance, we can
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expect new project developments returning in key markets. In the resort projects where we are
involved in the sales and marketing of fractional ownership products, we have experienced that the
fractional buyer is returning faster than the whole ownership buyer. So as the consumer confidence
recovers, fractional ownership is a strong product to lead with.”
Veranne Wilkinson, Hutchinson Group
Veranne Wilkinson is managing director for the Hutchinson Group in
Europe, which includes Citadel Trustees Ltd. One of her principal
objectives is to develop the Citadel brand, with a particular focus on
innovative investment projects such as fractional products and Unregulated
Collective Investment Schemes, which Wilkinson says represent exciting
and increasingly lucrative business opportunities.
Wilkinson says: “Despite the economic downturn, we have heard many
success stories in 2009 and I believe that we will experience a steady and
positive growth in 2010. Our developer clients are expanding their
activities into new and more innovative products, with a fast-growing interest in fractionals and
similar projects involving an element of investment, pooled-income or shared profits, and the number
of new enquiries is still on the increase. Yes, the year ahead is going to be challenging but there is
certainly very strong interest in the fractional property market across Europe and much enthusiasm
within the industry. The major element yet to be added is consumer finance for the higher value
fractions – once this has been addressed, there will be more success to come.”
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The Top 21 Fractional Real Estate Professionals

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