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An independent report from Special Report Publishing exclusively distributed in The Daily Telegraph

A Special Report Publishing

G U I D E

9th October 2008

T O

Fractional Ownership

The villa of your dreams page 3

A jet at your convenience page 10

Simply smashing supercars page 15


 Contributors Aaron Weddell Fractional expert Susan Kime Luxury property journalist

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 Daily Telegraph contact Special Report Publishing on 020 7629 7080 www.specialreportpublishing.com

INTRODUCTION

An introduction to fractional ownership

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. Cover image of Gran Vista, Majorca, one of The Hideaways Club’s portfolio of properties

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ractional ownership is a phenomenon that is flourishing. While traditional luxury business product markets sink, and numerous business sectors batten down the hatches, it’s a market that continues to thrive apparently undaunted by the wider western economic downturn. If anything, the market is actually growing... But what is fractional ownership? And how, in the midst of the credit crunch, is it consistently out-performing its more traditional rivals? Before we bring things up to date, let us look back at the history of the sector. Although there are many tales about the true pioneers of fractional ownership, it is widely agreed that the fractional property market began to form in America in the early 1990s, with groups of friends coming together to purchase holiday properties. By its very nature, a holiday property is something one uses only occasionally, so rather than leave their property unoccupied for much of the year, a group could purchase one between them and split usage and costs.

David Disick, President, David M Disick & Associates, was one of the

original fractional innovators. “When I inaugurated the Private Residence Club (PRC) industry in the mid ‘90s with The Franz Klammer Lodge in Telluride, United States of America, little did I realize how fast the PRC segment would grow,” he said. “Today, there are $2 billion in annual sales; the industry has performed well notwithstanding the current general real estate economic climate and projections for expansion are extraordinary.” But despite being widely understood in their country of origin, fractionals have only recently entered into the wider consumer consciousness in Europe. Over the past few years fractional ownership was a steadily growing marketplace, being utilised by savvy European consumers. But the recent financial turbulence has thrust fractional into the limelight as a viable way to maintain or enhance your luxury lifestyle at a fraction of the cost of old-fashioned single ownership. For those who would have previously opted for the time-honoured full ownership of such luxury items as yachts, holiday properties and supercars, fractional allows them to instead enjoy the same indulgences at a cost proportional to their time spent enjoying such luxuries. Like the original pioneers in the USA, they are managing their conspicuous consumption to their financial benefit without sacrificing any of the experiences to which they may have grown accustomed. The lifestyles of these ‘fractional-lifers’

can often be improved whilst their bank balance continues to tell the tale of someone who is managing their spending responsibly. An even more interesting development is the growth of the ‘middle-class millionaire’- a person who can truly live their ideal lifestyle complete with beautiful holiday residences, supercars and other such trimmings on an income that, although well in the upper echelons compared to the average earner, is not that of someone who could splash out on such things without serious sacrifices being made elsewhere. According to author Lewis Schiff, whose book of the same name identified the ‘Middle Class Millionaire’ phenomena: “As material goods become more commoditised, high-end experiences become the final frontier of true luxury. They address our need for quality in a time-starved world. Fractional products bridge the gap between products and services, the sweet spot for those who desire the experience of wealth without the hassle of obligation that comes with it. Discovery is an experience that the ‘middle-class millionaire’ craves.”

So far, so enticing: but what exactly is ‘fractional’? To cover basic fractional ownership first, this 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 Marque II

From these small acorns grew the mighty oak that we now call ‘fractional ownership’, a concept now so widely understood in the US that a recent study by PriceWaterhouseCoopers found that one-sixth of affluent households would consider investing in fractionals in the near future.

A&K’s Luxury residence, Kohala Coast, Hawaii

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, they may suffer from depreciation. For markets that do not traditionally lend themselves to fractional ownership, such as those involving rapidly depreciating assets (motor vehicles for example), the asset sharing model is utilised. Asset-sharing is different in that there are no ownership links between members and assets, so there is no investment potential in this model, but it broadly comes under the ‘Fractional’ umbrella. Asset-sharing generally involves a membership fee and, sometimes, a further usage fee, allowing the member access to the use of the assets, for example a fleet of supercars. Fractional lifers, as trend-watching gurus have termed those who use fractional ownership, desire designer accessories, exotic cars, membership of the best golf courses and access to the finest holiday homes, as well as the über-luxury goods previously only available to the ultra-rich, including yachts, private aviation and dabbling in pastimes such as racehorse ownership. But they wish to dip into and out of these experiences rather than commit themselves to full ownership. According to Piers Brown, founder of Fractional Life: “Consumers realise that life is finite and thus they want to make the most of their lifestyle in the here and

now. Such people now have a different attitude to luxury, valuing the thrill of the experience over the satisfaction of ownership.” Although broader acceptance of fractional ownership is only just filtering into the daily lives of many consumers, fractional ownership is, as the terms suggests, a way of life. A&K property

Fractional Life Fractional Life is the number one consumer lifestyle brand dedicated to growing the fractional ownership marketplace. The company has 3 divisions: interactive, fractional conferences and exhibitions (the Fractional Life Expo will be 3 years old next year!) and publishing.


 FRACTIONAL PROPERTY

A view from The Registry Collection’s Pine Cliff Residences on the Algarve

Stay in style This is the way to buy time in a dream home in a fabulous location, without having to worry about upkeep

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ractionals make sense because the average UK resident receives five weeks holiday per year, and second- and third-homeowners tend to only utilise their asset between 10 and 17 days per year. So if you opt for full second property ownership you are paying for maintenance and upkeep throughout a full 365 days of the year yet only using the property as little as three per cent of that time. The basics of Fractional Property, often referred to as Private Residence Clubs, are that you purchase a slice of a single property and in return you get a certain number of weeks’ usage per year. Broadly speaking, fractions range in size from a quarter to 1/12th. Other benefits include the potential to earn rental income for your own sole benefit if weeks not utilised are rented out to others. This can help to limit your security concerns as a

result of maximum usage and higher occupancy. Dependent on the scheme, you can sell your share in the property at the current property market value at any time; you are also investing in property with possible capital growth, although however the market changes you can benefit from limited surety for your portion only - not the entire value of the property. Ultimately it is about the convenience to really enjoy your leisure time. Mr. Alter, an owner at Timbers Resorts Castello di Casole, appreciates the benefits of the concierge there. “I need to make a reservation, show up and have the sheets on the bed and the groceries in the fridge,” he said. “Not find out who’s going to mow the field or worry about the property taxes.” The Vigia Group has been offering Fractional Freehold Shared Ownership to second home owners for more than 15

years. The luxury developer’s portfolio of exquisite beach and golf villas and village houses in the western Algarve in Portugal is second to none. Developments include the awardwinning, flagship golf and leisure resort, Parque da Floresta, the beachfront resort of Quinta da Fortaleza and stunning cliff top development The View 1 and The View 2 overlooking the Atlantic Ocean and the quaint fishing village of Salema. Fractional freehold with the Vigia Group offers people a way of buying a top-quality dream home in the sun at a portion of the cost of a full purchase. Prices begin at €36,075 for a twelfth share. www.vigiagroup.com (+351 282 690 073) Although we tend to think of fractionals as covering far flung exotic locations there are opportunities (continues page 4)


 (continued from previous page) available closer to home. Roseland Peninsula Homes are leading the way with their 16 acre Trewhiddle site set in the beautiful Cornish countryside and comprising 65 villas. But Trewhiddle isn’t just about the homes; it’s about creating an ideal holiday environment for couples and families alike. By providing first class facilities, there’s no pressure to be out and about every day of the holiday you can take time out from the tourist trail to relax. Prices for an eighth share of a property, entitling the owner to six weeks’ residence (or time to let) for 125 years, start from £54,950. John Goldsmith, Director of Roseland Peninsula Homes, said: “Trewhiddle is proving

itself to be a very attractive proposition for anyone looking to own property in stunning South Cornwall. We believe that fractional ownership is the next big thing when it comes to investing in property and owning a second home. “We are offering people an attractive alternative to purchasing a holiday home, especially in the current economic climate. Fractional ownership allows people to afford a top quality second home at a fraction of the price and instead of spending fortunes on up-keep and utilising a property for just a few weeks a year, we are offering excellent facilities, a vibrant yet relaxing atmosphere and up-market properties with the hassle of maintenance and upkeep completely taken away.” www.trewhiddle.co.uk (01726 65163)

Private residence clubs with added benefits A number of clubs are challenging the Destination Club model by offering reciprocal trade programmes that allow one to swap weeks at their chosen property with others within the company portfolio or selected partners. This offers an opportunity to enjoy both access to a variety of private resorts and a deeded real estate interest. Castello di Casole is one of the more recent offerings with their Timbers Resorts Reciprocity Programme allowing Tuscan home owners to ‘trade’ weeks and experiences at any of the other six Timbers Collection properties. David Burden, Founder and CEO of Timbers Resorts, commented: “Timbers Collection owners value the special and intimate luxury experience that has been created at their own Timbers’ developed resort. They want to experience those same benefits from time to time at other Timbers’ properties while ensuring that the same respect and care occurs at each exchanged property.” For further information on the Timbers Resorts properties log onto www.timbersresorts. com or for more information on Castello di Casole log onto www.castellodicasole.com (+39-0577-967511) Ritz-Carlton Club also offers deeded, fractional ownership at a Ritz-Carlton Club property alongside a reciprocal use basis at their other locations. Service levels are consistent with those of a Ritz-Carlton hotel. Members enjoy the convenience of a dedicated concierge staff providing services above and beyond customary concierge duties, such as airport pick-up, pre-arrival provisioning of the residence, unpacking and pressing pre-sent garments, arranging a complete itinerary and having personal items placed in their residence according to each Member’s specifications. At most properties, personal chefs are also available upon request. Furthermore, amenities include access to the private members’ lounge, as well as privileges at other Ritz-Carlton Club locations as space allows. www.ritzcarltonclub.com Reciprocal programmes are not the only value-added benefits on offer. The Island Gardens development in Miami offers fractional ownership of both a home and a yacht as a single package. Slated for completion in 2010, the 100 residences will be situated atop the Shangri-La Hotel and both property and yacht will be sold in one-eighth fractions. www.islandgardens.com

Distinctive Holiday Homes’ Lake Tahoe property

The Vis Unita Fortior awardwinning GoodbyeWinterBlues. com has won the ‘Award of Merit’ from JPC Publishing Company for ‘Best International Property Service in 2006’ and the ‘Silver Award of Excellence for Property Services’ in the same year. A representative from JPC, said: “The chance to invest in something that ordinarily would be out of your reach and to enjoy so many fantastic places is simply unmissable. No one else has managed to match this brilliant offer for a fair share in some truly desirable properties.”

for fractional ownership within The St. Regis New York. Learn more about St. Regis Residence Club® and the pleasures of ownership at The St. Regis New York, www.stregisaddress.com/SRNY

superlatives; this is the jewel in Dubai’s crown. This Private Residence Club consists of 50 stunning residences in a choice of penthouses, townhouses - all with pools - and two- and threebedroom apartments.

Looking to the future, Dubai is potentially the hottest location with Fairmont Heritage Place, Kingdom of Sheba situated in The Palm Jumeirah.

A state-of-the-art exercise room, private beach and landscaped gardens lie within the grounds. With “The Fairmont” experience, 24-hour concierge services and discreet daily housekeeping are among the many perks. www.kingdomofsheba.com

Arguably the eighth wonder of the world in a city of

In the same location, VH Dubai will be offering their first fractional in association with RCI. “Due to the thriving interest and intrigue surrounding Dubai, guests are attracted to this stunning location at exponential rates and VH Dubai’s unique offerings have been excellently received,” said Umar Mian, CEO and managing director of VH Dubai and The VH Residence Club. Check www.grouprci.com, and for the latest Dubai property news, www.selectproperty.com

“I need to make a reservation, show up and have the sheets on the bed... not find out who’s going to mow the field or worry about the property taxes” The club concept is unique in that it is a fractional ownership club where all the shareholders have an equal share in the Company, the property portfolio and profits. They have now launched GoodbyeWinterBlues. com II and five other syndicates. Memberships range from €18,500 to €21,500 dependent on payment plan. www. goodbyewinterblues.com From the moment John Jacob Astor IV opened the doors of his Beaux-Arts masterpiece at the now legendary address of 55th and Fifth Avenue in 1904, The St. Regis® New York has been a landmark of unsurpassed luxury and personalised service. Today, the future of luxury endures with a limited collection of studio and one- and twobedroom Residences available

Royal Madikwe Luxury Safari Lodge is situated in the 76,000 hectare Madikwe Game Reserve in South Africa, bordering Botswana. It is conveniently located just a one hour flight (or four hour drive) from Johannesburg. The Lodge is uniquely positioned in one of the very few malaria-free safari areas to enjoy magnificent sightings of the “Big Five” (leopards, black rhinos, African elephants, African buffaloes and lions) as well as the very rare wild dogs, making it ideal for children and families alike. The exclusive Lodge, which accommodates up to 16 guests in sumptuous suites, offers a refined touch of African luxury coupled with unsurpassed hospitality. Visitors are supported by a team of 18 staff, who cater for your every need, while you enjoy the

beauty and serenity of the African Bush. From delicious gourmet meals to crisp fresh cotton linen, your visit is made special from the moment you arrive. A strictly limited number of 30 year Memberships, ranging from three days to three weeks per annum, are currently being offered, entitling Members to exclusive use of the property during their stay... making it their home from home... in the African Bush. Thirty-year memberships start at £50k and range to £250k for the 30 year usage of the entire lodge, including all food and drink, child-minding and game drives during stays. This represents a discount of approximately 75 per cent on the standard rates. www.royalmadikwe.com (+27(0)82.787.1314)


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DESTINATION CLUBS

Join the club Why settle for fractional ownership of a single property when a club can put the world at your feet?

© Florim

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t is said that variety is the spice of life so why opt for fractional ownership of a single property when you could choose from a wide variety of different properties in a number of global locations, each offering a range of climates and experiences linked by their exemplary service and exquisite luxury?

Courtyard view of Botiga’s first home just outside Marrakech

Botiga is Europe’s latest exclusive private retreats club. With a name derived from the old Provençal word for boutique, you would expect a range of carefully selected properties in the world’s finest and most exotic locations, and Botiga does not disappoint. Botiga offers the finest and highest value properties of all the European clubs (the average property value is €4m) and it is one of the new breed of equity clubs, where members actually own the homes in which they stay so benefit from the uplift in underlying property values. Each property’s resident manager runs a full complement of staff offering personalised service at the highest level. “When you arrive at the villa your favourite wines are in the cellar, family photos are on the mantelpiece and cigars are in the humidor,” said Kit Harrison, co-founder of Botiga, encapsulating the experience that members of the club can look forward to. “It’s like returning home – even if you’ve never been there before.” Botiga is shortly closing its Founder offer, however a limited number of Founder Memberships remain available, providing members with a discounted share subscription, two dues-free years and a week in any of their sister company Descent International’s ski chalets for the 2008-09 winter season. Founder Membership costs between £145,000-£430,000 with annual dues of up to £28,000. Botiga is designed for people who expect the very best.www.botiga.co.uk (+44 (0)20 3326 4000)

Destination Clubs are one of the fastest growing fractional holiday sectors, giving members exclusive access to the best homes in the finest locations. With an initial deposit and annual dues, members can forget the hassles of maintenance and property preparation and instead just concentrate of the business of enjoyment for a given number of days per year. DCs tend to offer larger properties in prime areas, furnished to the highest standards and offering the same, if not higher, standard of service that one would expect of the best resort holidays. The appeal of these schemes is not limited to just the property and its location but the fact that they offer a complete end-to-end service. This can comprise a full-time concierge service, as well as service partnerships with the likes of private jet companies, exclusive golfing resorts and so on, to ensure that your experience is an unforgettable one each and every time. Your kitchen can be stocked with your favourite foods and wines, and personal belongings set up before your arrival to give you 100 per cent of the second- (and third- and fourth-...) home ownership experience

even though you are paying just a fraction of what it would cost to own such properties outright. On the topic of cost, very few DCs are sold as an investment opportunity. Generally speaking, you cannot resell your membership, but most clubs allow members to leave the club and receive either a partial or full refund of their initial membership deposit, although this is usually after a fixed time period or after the company has a certain amount of new members. In terms of actual figures, there is a broad range charged for deposits which can be from as little as £15,000 to in excess of £1.5m. A small number of clubs offer ‘deposit appreciation’ programmes whereby upon refund you receive a percentage of the deposit cost as at the time of leaving, so if your initial deposit some years ago was £200,000, the current (say, five years after you joined) £300,000 and the refund percentage 80 per cent (a typical value) you would be reimbursed £240,000 rather than £160,000; but time will tell how successful such plans prove. Founded in 2006 by a group of highly experienced international entrepreneurs and investors, the Hideaways Club offers its members exclusive usage and ownership of an entire portfolio of luxurious properties at a fraction of the sole ownership cost. Members currently have access to “their” multi-million euro properties in France, Italy, Majorca, Morocco, Switzerland, Spain, Turkey, and Portugal. In 2009 properties in Croatia, Mauritius and

Malaysia/Borneo will be added to the club’s portfolio which will continue to grow until a target of 100 properties in more than 30 locations is reached. All Hideaways Club properties are located in areas that are renowned for their beauty and accessibility and are luxuriously furnished. One of the major benefits of membership is that it removes all the hassles, hidden expenses and uncertainty associated with booking a holiday, and all members are looked after by the Club’s own concierge service to ensure a totally relaxing, enjoyable and stressfree experience. Stephen Wise, co-founder and CEO of the Hideaways Club, commented: “The positive, outstanding testimonials from our members confirm our belief that the club is not just a financially astute way to own and use overseas properties, but also provides the means to enjoy memorable holiday experiences. Members benefit from the capital growth in the value of the entire portfolio whilst enjoying relaxing holidays in amazing locations all organised by the club’s local concierge. This is proving to be a very attractive proposition”. Memberships range from £115,000 to £220,000. www.thehideawaysclub.com (020-7824-9944) From the tranquillity of the tropics or the thrill of the ski slopes, to European locations steeped in tradition, to the exciting and inspiring new worlds of Australia and New Zealand, Distinctive Holiday Homes offers an extensive and


 ever-expanding portfolio of premium vacation destinations worldwide. All of which have been hand selected by CEO Nick Wood. “As I have lived in Australasia most of my life,” Nick Wood said, “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.” Individual membership plans range from £15,000 to £250,000, with corporate plans ranging from £100,000 to £176,000 depending on member usage needs. In addition, DHH has multiple service amenities – strategic alliances with BMW and Bombardier SkyJet. Whilst at the property a luxury

An alternative to DCs? One Key World is a luxury travel club which provides members access to the world’s finest vacation homes and elite travel services using a debit-card model that offers the ultimate in flexibility and choice. With a rigorous onsite inspection and certification process, the club offers over 30 destinations and 450 homes. Whether it’s Aspen in springtime, Tuscany in September, or escaping winter’s bite in St Barth’s, a membership with One Key gives you access to multi-million dollar homes in some of the most sought-after destinations. One Key also provides a dedicated Member Services team that assists in managing all the details; providing members customised and quality assured vacation experiences. The One Key team has intimate knowledge of each locale because they have been there; they have experienced the views, they have tasted the best food and they know some of the best kept secrets in the travel industry. As CEO, Jay Sapovits, succinctly described it: “We offer the versatility of villa rentals with the quality and service of destination clubs, One Key truly is the best of both worlds.” www.onekeyworld.com

Corsanico, Tuscany

Luxury vehicle with sat-nav

concierge service is available to DHH members. www.distinctiveholidayhomes.com (0800-1583668) In May of this year, Ultimate Resorts and Private Escapes completed a merger deal to create the Destination Club behemoth that is Ultimate Escapes. The club offers a three-tiered membership structure: Premiere level features homes averaging $1 million in value, the mid-level Signature offers $2 million homes, while the Elite level offers homes with an average value of $3 million. With the tag-line “Experience the Vacation of a Lifetime, Every Time” and 150 properties in over 50 destinations, Ultimate Escapes are a dominant force in the fractional marketplace. Memberships range from $200,000 to $450,000. www.ultimateescapes.com Abercrombie & Kent will be a name many travellers recognise, founded in 1962 by Geoffrey Kent, Abercrombie & Kent has provided millions of unforgettable travel experiences to discerning travellers. The Abercrombie & Kent Residence Club officially launched just last month offering choice in travel options in over 106 countries and 30 destinations. The club offers an equity model, with all residences wholly owned by the club, and memberships range from $225,000 to $495,000. www.akresidenceclub.com

Lake Tahoe, California

The Registry Collection The Registry Collection offers nearly 150 elite properties in its international portfolio. Whether feeling the soft white sand of a Mexican beach between your fingers, or elephant-watching on safari, the properties selected to join The Registry Collection are all set in the world’s most breathtaking locations. They offer many luxurious comforts as well as membership privileges such as a personal 365-day concierge service, reservation consultants to assist through every step of holiday planning, and the opportunity for those buying off-plan to enjoy superb holidays in any of The Registry Collection properties while waiting for their own build completion. Allie Lalova, brand director of The Registry Collection commented: “Quality is key in every aspect of the experience we deliver. From the renowned third-party independent quality inspection agency we engage to assure the highest quality in each of our affiliated properties, to our early privileges programme that allows our members to start enjoying fabulous holidays before they get the keys to their own properties.” In the two years since the launch of The Registry Collection, its market share has grown to 40 per cent and the global luxury holiday exchange market has doubled; it also has a number of premium affiliates including the IFA Yacht Ownership Club. www.theregistrycollection.com (0845-6086352) Chris Toll owns St Andrews Golfing Lodge, a luxury five-bedroom stone house close to the Great Course in Scotland. Though he and his family use some of the weeks’ ownership for exchange holidays to their favourite ski resort, Old Greenwood at Lake Tahoe, California, Chris views the property as a business concern and wants to maximise its value. This is where he finds value in his affiliation with The Registry Collection. He explains: “We wanted to align ourselves with an exchange organisation so we could offer our fractional purchasers some additional value for their ownership. “St Andrews is a ‘once in a lifetime’ destination, and I acknowledge that our fractional owners will want to travel to other places. It’s wonderful to be able give them the opportunity to swap their St Andrews holiday for some other amazing destination. And I know from my own experience, the properties in The Registry Collection offer the space, privacy, security, location and quality advantages I enjoy in my own luxury home.”

86ft Motor Yacht

Ile St Louis, Paris

Cocktails on the veranda

Waya Island, Fiji

VACATION BEYOND 5 STAR. Beaver Creek, Colorado

Distinctive Holiday Homes is redefining luxury travel and it promises to change the way you vacation forever. Our total focus is to exceed our Members’ expectations. To receive a full information pack, please call us or visit www.distinctiveholidayhomes.com.

• Spacious properties for family and friends

• Daily housekeeping, laundry and pressing

• Personal Concierge on call 24/7

• 80% refundable Membership joining fee

• Luxury vehicle with Sat Nav

• Luxurious yachts and properties worldwide

• Pre-ordered gourmet food and wine

• No ownership expenses or responsibilities


Your propertY. Your prosperitY.

Celebrating five years of success, more than 30,000 members, and a global network comprising more than 100 luxury leisure assets on five continents, The Registry Collection® program provides developers like you with a true competitive advantage. We ensure your property is in an elite class and deliver what your owners desire - exclusivity, superlative quality and unsurpassed service - all the while setting the stage for unprecedented business growth. The good life. It’s good business.

Ultimate Luxury. Unlimited Opportunity.SM To take a closer look at The Registry Collection experience, please visit our Member Web site theregistrycollection.com. For more information, please contact: Europe: Nick Turner on +44 (0) 7960 034 933 or Paul Mac Sherry on +44 (0)7710 327 994. South Africa: +27 11 258 0195. The Middle East: +971 4 390 1660. The USA: +1 866 937 5979. ©2008 RCI, LLC. All Rights Reserved.




GOLF

The fairest of fairways Golf is the perfect fit with fractional property ownership: a house on a glorious course, and permission to tee off whenever it suits

Parque da Floresta Golf Course

OCEANICO PRESTIGE "Even when middle-class millionaires invest in traditional luxuries like second homes, jets, or yachts, they prefer

Oceanico Prestige benefits include what one would expect of such a high-end fractional, but some you may not anticipate include use of a Sunseeker luxury cruiser and full membership of seven worldclass golf courses, with the golf title attached to the property. The five well established 18-hole courses at Vilamoura are among the best in Europe and enjoy an international reputation. Certain to attain similar status are the two new courses at Amendoeira Golf Resort. Designed by Nick Faldo and Christy O’Connor Jr., each has its own very distinctive characteristics, and they are worthy additions to Portugal’s fine golfing tradition.

fractional ownership. They're looking for ownership to be converted into a relationship rather than an asset they have to take care of. Their primary luxuries are time and attention." Lewis Schiff, Advanced Planning Group "Fractional ownership is quickly becoming a mainstream way of living and is emerging as one of this decade’s major paradigms in consumer behavior."

Daniel Nissanoff, author Futureshop

With some of the Algarve’s best known courses, including the revered “Old Course”, Vilamoura offers a great golfing experience to players of all abilities. Home to top international tournaments, these championship courses provide a comprehensive range of facilities, and are all located within a short distance of one another.

Prices start from €250,000 per eighth share at the Vilamoura Golf & Garden Resort in the Algarve; €175,000 per share at Royal Óbidos Spa & Golf Resort on the Silver Coast; and US$149,000 at Little River Golf & Resort. www.oceanicodevelopments. com (0871 990 3388)

PESTANA

Pestana Golf Resort is a development of Golf Villa and apartments in Portugal. The properties on the development are set around the Gramacho and Vale da Pinta golf courses and many also have fantastic views of the Monchique Mountains. The Vale da Pinta course is a championship golf course with an excellent layout designed by the famous American golf course architect, Ronald Fream,

Life’s changingare you? "My view on fractional ownership: a growth business. The upper middle class has hunger for a taste of the most affluent life. They detest low asset utilization - fractional is fun."

Michael J. Silverstein, The Boston Consulting Group "When it comes to pursuing their luxury lifestyles, there are two overriding attributes that characterize affluent

who teamed up with former world number one golfer Nick Price to create an 18 hole course with 27 varied greens. The course has hosted the Portuguese ladies’ open on two occasions and features lakes and trees which make the course both challenging and attractive. The on-site golf academy offers classes on open or covered training tees and has eight target greens, a chipping area, several

bunkers and a large putting green. There are experienced PGA teachers on hand offering both private programmes and golf schools. Linked Villas are available on Quarter Share from €132.950 (2 bed), one-bed apartments from €85.250 (Off-Plan) and two-bed apartments from €104.260. www.pestanagolf.com (+351 282 340 930)

households. They demand the luxuries they indulge in to offer superior quality... to be a cut above the rest. At the same time, they want the very best for less. Fractional ownership has got both covered."

Pam Danziger, Unity Marketing TM

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 Fractional Life is the number one consumer lifestyle brand dedicated to growing the fractional ownership marketplace. The company has 3 divisions: interactive, fractional conferences and exhibitions, and publishing. e:info@fractionallife.com t: +44 (0)20 8340 7989


10 PLANES

Fractional flying Frequent flyers may find that the fractional route is best suited to their requirements

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requent international travellers want the best possible experience from start to finish, and if your holiday or business trip begins with travelling in your very own private jet then you are off to the best of starts. Flying privately is simply the best way to take to the skies, combining the ultimate in customer service, convenience, flexibility, time-saving and security. The benefits do not just stop at the obvious, because flying privately gives you greater scope for making the most of your flying time, through either entertaining clients or simply by allowing you the room and facilities for you to break out the laptop and allow your working day to continue almost uninterrupted. But let us not forget a point that is a rarely discussed: it feels good to fly private. Although we may all look to manage our conspicuous consumption and our associated carbon footprint, there is undoubtedly a cachet and prestige associated with having your own plane.

NetJets Gulfstream

To the layman, flying private is the preserve of the super-rich and/or famous but you can fly private without necessarily

owning your ‘own’ plane. An approximate guide: if your flying hours are less than 400 per year, then outright purchase is probably not for you, but there are a number of fractional schemes that could service your needs and provide you with 100 per cent of the experience at a fraction of the cost. So on to the fractional options: Fractional Ownership Programmes. You purchase a share of a plane, with the actual price you pay based on the prorated cost of full purchase. As a fractional owner, you have guaranteed access to your plane with as little as a few hours notice, and pay a monthly fee that covers maintenance and upkeep alongside an ‘occupied hours’ fee which is only charged when you are onboard. A fractional ownership programme is generally calculated as a five-year deal. At the end of this period you sell your share back to the operator of the scheme for a reasonable market value, less a remarketing and administration fee. So you need to be aware of how the market value is calculated, as this will ultimately affect your bottom line: the overall cost of ownership is going to be very much dependent on the residual value.

It is impossible to speak of fractional aviation without referencing NetJets Europe. Richard Santulli, Chairman and CEO of NetJets Inc., NetJets Europe’s sister company, developed the fractional ownership model in the United States in 1986. NetJets Europe’s fractional ownership programme ranges from a 1/16th interest (the equivalent of 50 hours annual flying time) in a seven-seater Hawker 400XP for $400,000, to just over $12 million for 200 occupied hours in a Gulfstream 550. Card Programmes suit those looking for a smaller financial commitment, whereby you ‘payas-you-go’ by block-purchasing 25 hours on a particular plane to be used over either a 12 or 24 month period. Your Oyster-style card is debited on a per-flight basis dependent on the plane type and journey length. Both programmes give NetJets Europe’s customers access to the company’s dedicated fleet of 157 aircraft. With the latter model, customers can experience the fractional owner level of service, but if (continues on following page)

Our ‘Share Exchange’ is the 1st place to call if you are looking at fractional jets

• The first open marketplace to buy and sell new and used shares from the major European fractional operators • Benefits both buyers and sellers • Independent advice on the most suitable programme We have shares from all the major European providers including Netjets, VistaJet and European Business Jets. Contact us first and make an informed choice.

www.fractionaljeteurope.com

Contact: Chris Moody on +44 (0)20 7758 6155 or email chris@fractionaljeteurope.com


11

luxury homes

beautiful location

excellent on site facilities

A stunning new collection of holiday villas, set in 16 acres of tranquil South Cornish countryside. Designed and built to the highest standards, the villas provide an ideal holiday environment for couples and families alike. The Trewhiddle co-ownership scheme offers buyers the opportunity to collectively own a fully managed villa for ÂŁ44,950 (for a limited period only)

For more information visit: www.trewhiddle.co.uk Phone: 01726 65163 Email: enquiries@trewhiddle.co.uk


13 (continued from previous page) their flying requirements are 50 hours or more the fractional ownership option becomes more cost effective. NetJets Europe introduced their Private Jet Card in 2002 and recently sold their 3000th card. The popularity of the card is evidenced by its renewal rate, with 90 per cent of cardholders renewing or graduating to fractional ownership. Mark Booth, NetJets Europe’s Chairman, said: “Simplicity is the key to the success of the Private Jet Card, making it perfect for many businessmen and businesswomen who want to experience the benefits of flying privately with the highest levels of safety and operational excellence.” Prices for the Private Jet Card start from €131,000 for 25 hours flying time on a light jet (Citation Bravo/Hawker 400XP). The 25-hour card provides the most accessible way for customers to explore the benefits of business aviation. Unsurprisingly, almost 20 per cent of cardholders upgrade to owner status by purchasing a fraction of a NetJets Europe aircraft. VistaJet is one of the fastest growing private jet companies, and was recently awarded the prestigious ARG/US Platinum rating <http://www.vistajet. com/en/platinumrating.php> in recognition of the company’s high standards. With VistaJet, the customer has the option to commit to 100, 200, 300 or 400 hours annually without taking on any asset risk. The customer pays no monthly management fee and only a low occupied hourly fee. Several flexible options range from 100 hours guaranteed availability and a 30 month term, to 400 hours

NetJets Hawker 800XP

and five-year programmes. Alex Berry, Executive Vice President, Programme Sales, had this to say about his service: “VistaJet aim to make our clients lives easier and more productive by focusing heavily on service. These facts, coupled with the passenger timesaving benefits are currently the key areas driving the growth in the private aviation market. Working within the mid-top end tier of service providers, our clients demand the best service possible. Europe, the Middle East and Russia are all big markets for us now and we’re probably the biggest operator flying to and from Moscow with over 1,000 movements per annum.” The impact of the credit crunch on private aviation seems to be contrary to the wider marketplace. In fact, in the last month, a new offering in the form of Jet Republic has launched and across the industry it seems that fleets are expanding. Jonathan Breeze, chief executive of Jet Republic, explained his thoughts about this: “Despite the current economic climate, the private jet market is enjoying strong growth. We also believe there is significant room for improvement in the level of service provided by the private jet aviation sector. This means there is a very strong and real opportunity for us to

take a significant share of this market.” Alex Berry of VistaJet expanded on this theme. “I’m not surprised there have been some casualties within the commercial airline category recently and some new entrants into the private sector,” he said. “Private aviation is going to continue to grow. In North America there are approximately 11,000 private aircraft available, whereas in Europe there are still only between 2,000 and 2,500. The credit crunch is starting to have an effect on the market in that an 18-month waiting list for new private aircraft is still pretty much the same, but the premiums requested to “jump the queue” for immediate deliveries have dropped considerably over the last 12 months.”

Fractional aviation providers include: www.netjetseurope.com (0207-361-9620) www.avolus.com (0845-4501504) www.europeanbusinessjets.com (020-7763-7100) www.vistajet.com (01252-526-630) www.jetrepublic.com (0207-959-6722) www.airshare.aero (01797-322208

FRACTIONAL JET EUROPE

Recently launched, Fractional Jet Europe provides two principal services: a brand new “Share Exchange”, which is unique to Europe, creating an open marketplace for the buying and selling of new and used fractional jet shares, and an independent consultancy to assist clients in choosing the most suitable fractional jet programme. Chief Executive, Chris Moody, said: “Our timing couldn’t be better. The jet market undeniably mirrors the financial markets more closely than any other product. There is enormous turbulence in the jet market as well, and our service can potentially save clients tens of thousands of dollars in a single transaction.” “The Share Exchange is ideal for both existing share owners who want to review their current position, and for a company or person looking to join a programme for the first time. It benefits both parties, as the seller can avoid heavy early termination fees, and the buyer gets a cheaper share, and a shorter contract term.” The Consultancy’s aim is to advise and help with contract negotiations as well as analyse the market - providing a comprehensive report of the most suitable options whether purchase, lease, or card programme. Moody adds, “Choosing the right fractional programme is difficult and timeconsuming and mistakes can be expensive. Fractional Jet Europe has the expertise and thorough market knowledge to assist our clients in making the best choice. We will advise clients as to which one is right for them, and in the process save them considerable sums of money”. www.fractionaljeteurope.com (020 7758 6155)

Distinctive Holiday Homes’ Lady K, 86 ft yacht in the Mediterranean

BOATS

Fractional afloat Two thirds of the Earth is covered in water - why not explore it in style?

A

yacht can take control of your life if you are the sole owner, plaguing you with upkeep worries and costs that can easily get out of hand, from full-time crew to mooring fees, insurance and general maintenance. A fractional boat plan can work out in a particularly effective way. If the craft that you are interested in has strong residual value, at the end of a fixed period your boat or yacht will be sold on and you will receive a portion of the sale proceeds. In terms of actual sailing time, each yacht is typically available for around 40 weeks per year (across all fraction holders) with the remaining time being used to carry out servicing and maintenance. Then there are the extended benefits of having a fractionally owned yacht, such as guest privileges at the finest yacht clubs around the world, as well as some clubs offering the bonus of such things as golf club memberships and exclusive resorts. YachtPlus provides a new way to experience the joys of yacht ownership through their fleet of yachts exclusively designed by Sir Norman Foster for their fractional yacht Ownership Programme. Rob Hersov, Vice-Chairman of YachtPlus,

commented: “YachtPlus is one of the most exciting ventures I have been involved in and I see the concept of fractional ownership as one of the fastest growing options for those who wish to have personal ownership of top-end luxury products. At YachtPlus we offer the discerning investor the opportunity to own a truly spectacular and contemporary super-yacht without all the hassles, concerns and unforeseeable financial pitfalls associated with sole yacht ownership.”

“I see the concept of fractional ownership as one of the fastest growing options for those who wish to have personal ownership of top-end luxury products” To join the YachtPlus programme, you purchase a 1/8th share in a Euro 16,000,000 super-yacht for €1,850,000, which will give access to the entire fleet, with four to five weeks annually on board, split between the Mediterranean and the Caribbean. Running costs of €200,000 per annum are divided

pro-rata, so for a fraction of the cost of purchasing your own yacht you will have an entire fleet at your disposal. For further information email srp@ yachtplus.com. And it’s not only luxury yachts and sailboats that are available on a fractional basis. Rigid Inflatables and canal boats are also available: the range of options is vast, covering from RIBs to superyachts and pretty much everything in between. Through this diversity the yacht and boat fractional market really encapsulates what fractional ownership is all about. Whether you require a multi-million pound superyacht, a luxurious sailboat for a day’s cruising, or a RIB for the odd spot of waterskiing, all are on offer: there is something out there to suit all tastes and all budgets. Fractional boat and yacht providers include: www.yachtplus.co.uk (020 7824 9945) www.privatsea.com (020 7824 9945) www.eusamarine.com/ 1fractional.htm (0191 206 4100) www.synergyyachting.com (07879 067 783) www.sailtime.co.uk (02380 574727) www.thewhistlejacketclub.com (01756 799 022) www.ownerships.co.uk (0208 888 5555)


WIN

two weeks FREE luxury holiday accommodation every year for the rest of your life

in the UK or abroad

Enter the Seasons Holidays Grand Prize Draw and you may never have to pay for holiday accommodation again! Seasons Holidays are one of Europe’s leading holiday resort developers. More than 75,000 British people will stay at a Seasons Holidays resort this year in a choice of more than 90 fabulous destinations around the UK and overseas. The winner of the first prize will be given a two week Seasons Membership package including annual management fees for life; enjoy free holiday accommodation every year for up to four people, subject to availability at any Seasons resort. In addition, we guarantee to give away as runner-up prizes a one week luxury Seasons Membership package to at least 50 readers of this publication. The only annual cost for runner-up prize-winners will be the cost of getting to and from your chosen villa, cottage or apartment and an annual management fee, currently just £367. Ownership can be surrendered at any time without penalty. Linda Robson, star of TV and stage will be picking the lucky winner of the Seasons Holidays Grand Prize Draw.

All entries must be received by October 31st, 2008.

‘My family and I really look forward to our holidays with Seasons’ Linda Robson

+ 50 runners-up prizes of a week’s accommodation for life - excluding annual management fee

PLUS all entrants will receive a voucher for 2 for 1 Grandstand entry to see the Seasons Holidays Tingle Creek Chase at Sandown Park - worth £22!

to enter simply fill in the form below or enter online at www.seasonsholidays.com/prizedraw Title................................... Name................................................................................................................................... Email................................................................................................................................................................................. Address............................................................................................................................................................................ ........................................................................................................................ Postcode................................................ Telephone............................................................................. Mobile..........................................................................

If you would not like to receive the regular monthly Seasons email newsletter, providing you with regular news updates and details of special offers, tick here

send this form to:

Seasons Holidays PLC, Grand Prize Draw, FREEPOST NAT20826, St Albans AL1 3BR

telfrs

Are you a homeowner? Y N Are you married / living with partner? Y N Please indicate your age group under 18 18-27 28-49 50-69 70+

Winners will be contacted by email, telephone or mail within 28 days of each draw taking place. One runner-up prize winner will be drawn each day until 31 October 2008. All entries received by midnight will be included in the random draw which will take place the following working day. Winners of each runner-up prize will be able to request one week’s self-catering accommodation each year in any one bedroom cottage, villa or apartment (sleep up to four people) subject to availability in any green band holiday period at any Seasons directly owned or affiliated resort in the UK and around the world. Dates are available throughout the year but vary from resort to resort. Winning any prize will exclude participants from winning or being eligible for any other prizes offered by Seasons wherever appearing. Annual management fees are not included in each runner–up prize. In 2008 the management fees per week of membership are £367 including all utility charges and booking fees. The annual fees will generally increase by no more than inflation, which provides our members with reassurance that they are not going to face large unjustified increases each year. Membership of the Club can be surrendered at any time without penalty or continued until the year 2069 upon payment of the annual management charge. New members are able to request any date at any resort owned and operated by Seasons Holidays plc subject to availability up to 12 months in advance of travel during their first year of membership. In future years, dates will be available within green band periods throughout the year. All entries received before October 31st, 2008 will be entered into a further prize draw to win two weeks of Seasons Membership as described above, which will include all management fees for the lifetime of the winner, or until the end of 2069, whichever occurs the sooner. The membership weeks are transferable, the lifetime of management fees are personal to the winner and are not transferable. Winners will be entitled to resell, rent out or will their holiday club membership, provided they have personally taken at least one seven night holiday at a Seasons Member Resort and been registered as Members for at least 12 months. There is no cash alternative to any of the prizes offered. These prizes are being given away to promote Seasons Holidays plc. A full disclosure statement about the holiday products being promoted is available on request from the promoter Seasons Holidays plc, 86-90 Victoria Street, St Albans Herts. AL1 3TG or visit www.seasonsholidays.com/clubseasons. All entries will be placed into the draw for the first prize. Only one entry per UK household will be included by Seasons in the daily bonus draw in any one calendar year, by homeowner participants, one of whom must be between the ages of 28 and 69, in full time employment or in receipt of private pension. This offer and prize draw is not open to existing clients and Members of Seasons Holidays plc, or anyone associated with this offer and prize draw, nor any participant who already owns timeshare at any resort. All entrants will be sent a voucher for 2 for 1 admission to the Seasons Holidays Tingle Creek Chase at Sandown on December 6th, 2008.


15

CARS

The wheel deal C

lassic and supercars make little sense when you weigh up their usability compared to your average family hatchback. But if our heads ruled all of our decisions the world would be a dull and stagnant place, so Ferrari, Lamborghini, Porsche and their ilk hold a special place in our hearts if not our garages. If you would still like to experience the thrill of driving such fabulous vehicles, even if just as an occasional respite from the normal grind of motoring, then a fractional car club is the next

best thing to having your own Jaguar E-Type or Lamborghini MurciĂŠlago. Because cars an be costly assets to maintain, car clubs tend to adopt the asset-sharing model. The shelf-life of individual cars is kept relatively short in order to keep fleets fresh, resale values as high as possible and maintenance and consumable costs to a minimum. This also allows for a greater range of models to be purchased by the club. The standard format is one of membership costs covering points and mileage values that can then be

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A supercar doesnâ&#x20AC;&#x2122;t make much sense for popping down to the shops. But there are ways of indulging your right foot without breaking the bank

â&#x20AC;&#x2DC;spentâ&#x20AC;&#x2122; throughout the year across the fleet, with the points of each hire being dependent on the grade of car, time of year and weekday or weekend use.

â&#x20AC;&#x153;Every few weeks I get to try something different, even if itâ&#x20AC;&#x2122;s a car Iâ&#x20AC;&#x2122;d never consider buying because of the costs involved or the practicalities.â&#x20AC;?

How your points are used is down to you, but generally between 35 to 50 days use per year is the norm, obviously less if you want the topranked vehicles only for weekend use during the summer and more if you opt for off-peak weekdays in lower band cars.

â&#x20AC;&#x153;My experiences have ranged from cross-channel jaunts in a Mustang to driving a superb E-Type Jag to my own wedding!â&#x20AC;?

Long time Classic Car Club member Mark Oâ&#x20AC;&#x2122;Neill summed up the appeal

Prices for car club membership range from approximately ÂŁ3,000 for those offering half-membership on classic and modern-classic cars to ÂŁ16,000 for those offering only the latest and greatest supercars.

PROVIDERS INCLUDE: www.segraveclub.com (020 7581 9985) www.classiccarclub.co.uk (0207 490 9090) www.clubgt.co.uk (020 7935 8485) www.marque2.co (020 7582 2223) www.ecurie25.co.uk (020 7159 2543) www.p1international.com www.parc-ferme.co.uk (01784 470002) www.autolussoclub.com (01753 865206)

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The financially astute way to own overseas property

Chalet Etoile, Four Valleys, Switzerland

The Hideaways Club is Europe’s premier fractional ownership property company, offering it’s members exclusive usage and ownership of an entire portfolio of luxurious properties. The portfolio includes a stunning selection of villas, chalets and city apartments all of which are professionally managed by UK and local concierges at a fraction of the cost of sole ownership. Besides the luxurious lifestyle, members enjoy the potential investment growth of their diversified portfolio across a wide range of locations, making this the most compelling and financially astute way to own overseas property. In these uncertain times, fractional ownership offers people the opportunity to improve and broaden their lifestyle for a significantly reduced investment. Current locations include: Italy, France (2), Morocco (2), Spain, Portugal, Switzerland (2), Majorca (2), Croatia, Turkey (2), Mauritius and Malaysia.

Investment from £115,000 to £220,000 for a Premium Share. For more inFormation, please visit our website www.thehideawaysclub.com, email telegraph@thehideawaysclub.com or call us on +44 (0) 20 7824 9944 © 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.


Fractional lo-res booklet