A slice of luxury An independent report from Special Report Publishing exclusively distributed in The Sunday Telegraph
30th March 2008
THE WORLDâ€™S MOST EXCLUSIVE HOLIDAY HOMES SHARE THE SAME ADDRESS: www.d-h-h.com
Beaver Creek, Colorado
86ft Motor Yacht
2 Contributors Aaron Waddell Freelance journalist Susan Kime Freelance luxury journalist
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.
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”.
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.
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.
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
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
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
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. firstname.lastname@example.org / www.howardkennedy.com
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.”
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)
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@example.com www.kingdomofsheba.com/fhp This is not an offer to sell where prior registration or licensing is required.
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
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
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
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.
Private Residence Clubs
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)
THE HIDEAWAYS CLUB
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, 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)
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)
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)
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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
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 ~ firstname.lastname@example.org 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
or through our residential interest programme. Italy +39.0577.967511 or U.S. 866.963.5005 or visit www.castellodicasole.com.
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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?
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)
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
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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The pinnacle of style
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UK T: + 44 (0) 20 7034 3050 Dubai T: + 971 4 404 3424 E: email@example.com www.ifayoc.com
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
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.
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
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Want to be part of it? Call 01389 755625 quoting ref ST08 or visit www.deverefractional.co.uk
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