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7th June 2009

Fractional Living

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

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Contributors
David Nicholson Freelance journalist George Sell Features Editor, Fractional Life Aaron Waddell Fractional expert Publisher Miles Allen Editor Andrew Baker Design & Production Benn Withers Print & Distribution The Telegraph Media Group Limited
For more information about future reports distributed with the Sunday Telegraph contact Special Report Publishing on 020 7629 7080
www.specialreportpublishing.com Copyright Special Report Publishing

INTRODUCTION

Fractional freedom is the way forward

Analysts and experts agree: shared ownership is the future, not just in property but in other key lifestyle areas. This supplement will explain why, and pinpoint the pioneers

Any prize draw in this supplement is wholly independent of Special Report Publishing Limited who do not take any responsibility for any of the contents for any prize draw.

Cover images

Hideaways private residence club property, Dar Liann, Marrakesh, Morocco Lamborghini Gallardo Superlegerra courtesy of Steven Hall Photography Cookielicious A 72 ft Oyster yacht Jet Republic Learjet 60 XR

hy settle for cotton when you can have silk? And why buy a less attractive second home (which you wont use for more than a few weeks) when you could have a share of a fantastic one? The logic of fractional ownership has become increasingly appealing to a European public keen to have a slice of equity

and maintain its foreign holiday quotient but less enamoured by the hefty bills that accompany second homes. More resorts are being added to the stock of fractional developments every month, in Europe, the United States (where the model originated in the 1990s) and even in parts of Africa and Asia. A new development called yooPhuket in Thailand, with prices for a quarter

share in an apartment starting at 18,600, launched in May this year. Fractional ownership differs from timeshare in that the purchaser usually owns a proportion of the asset and is becoming part of a wider societal trend, according to advertising agency J Walter Thompson in New York. Fractional ownership is moving beyond the shared planes of the jet-setting elite, states JWT. The masses are already sharing everything from art to cars to designer handbags. As technology for pooling demand and resources becomes increasingly sophisticated, this model will be applied to an even wider range of categories. There is nothing tremendously high tech about sharing real estate, although the greater sophistication of cross-border legal and financial agreements has helped to facilitate foreign ownership of real estate. The majority of customers for fractional real estate are aspiring second home owners. As Claude Attala of consultancy company NorthCourse puts it, The focus is on the idea of lifestyle and the aspiration to belong to a certain lifestyle. NorthCourse published a thoroughly-researched and exhaustive study on the fractional market earlier this year in collaboration with Fractional Life magazine, detailing its current status and prospects. An increase in preference for value and personalisation has opened the doors for the shared ownership market, states the report. New products have been devised to better respond to peoples needs and affordability. One new development, from Select

Co m are peti av tive a il s h a b or le t t fro er m m th fin e d an ev ce elo op pe tio r ns

Ownership, is offering two-week equity shares in an apartment in Turkey for 1,990 over a 15-year term . As Attala recognises, the fractional market has blossomed as general economic conditions have dipped. In a booming market, developers can achieve high premiums selling stand-alone properties, whereas fractional sales are complicated. Now it is a good time for developers to look at fractional as a value proposition, because you can get higher yields and bring down prices for consumers, to generate interest.

Gardner-Bougard has noticed a growing number of timeshare companies selling fractional products to existing customers, just as the market for wholeownership second homes has evaporated. Fractional takes a lot of the risk out of second home ownership, he points out. The credit crunch is changing the landscape of overseas property ownership, argues Piers Brown of Fractional Life, who also organises highly popular and well-attended fractional ownership events in London. Entry levels are lower than with whole ownership, there is less risk, you share the ongoing costs of upkeep and there is more finance available for investments of up to 50,000, he believes. The Fractional Life website www.fractionallife.com receives more than a million hits a month, demonstrating the enormous appetite for the sector. People still want to experience luxury, says Brown. We think that fractional ownership developments will be very well placed to benefit when the upturn comes. Once the model becomes fully accepted, the possibilities are endless. I think the next area of opportunity is India, says Claude Attala at NorthCourse. How to structure fractional ownership in the country is an issue to be overcome, but I think the market will grow rapidly. As yet, no significant secondary market has emerged for fractional real estate. Once it does, then investors and aspiring second home owners will gain further reassurance and were likely to see a huge rise in available product. Farewell cotton, hello silk.

Fractional ownership developments will be very well placed to benefit when the upturn comes
Markets such as Spain, Portugal, France and even Egypt, with established timeshare markets, are now the ones most receptive to fractional ownership. Then there are emerging markets such as Croatia, which have definite potential, adds Attala. Were seeing a diversifying market. Under a new European Union directive due in autumn 2010, timeshare and fractional ownership will come under the same legislation. Paul Gardner-Bougard at the Resort Development Organisation (formerly the Organisation for Timeshare in Europe) welcomes the move, as he believes it will strengthen protection for customers. Were keen to see a strong fractional market and keep the cowboys out, he says.

Fractional Ownership in Tuscany from t 63,000

Fractional Ownership
opportunities remain in the one bedroom residence category at the award winning 14th century Hamlet Borgo di Vagli at t 63,000. Borgo di Vagli is located near the popular medieval town of Cortona (only 40 minutes from Perugia airport). Fractional Ownership at Borgo di Vagli allows one a rare opportunity to enter the Tuscan real estate market at a fraction of the cost and own a piece of its history. Owners receive a Fractional interest, in perpetuity, to the Hamlet's fully furnished residences - with virtually unlimited access to the residence categories (one and two bedroom). A limited number of

Borgo di V agli

www.borgodivagli.com ~ info@borgodivagli.com
Ph. +39 0575 619660 pricing subject to change without notice

Tee time
The Kings Golf Course, Gleneagles

One of the main driving forces in the fractional property market is proximity to a golf course. But quality counts: no-one wants to buy in to a bogey

ooking out over the Atlantic Ocean, with a five star country house hotel and spa next door, an 18-hole golf course around the corner and an airport 15 minutes away... who could ask for a better location? Anne Marchington at the Palheiro resort in Madeira is well aware of the special nature of the development, the only one offering fractional ownership on the island. In the last two or three years people have begun to take notice of Madeira, she notes. Its been called the New Zealand of Europe, thanks to the great outdoor sports you can do here. It has surfing, mountain biking, diving, canyoning and interior walks along the backbone of the island. The development of 79 properties in the Palheiro village is mainly

being offered with whole ownership, but as the economic climate has slowed in recent months, some have been offered for fractional purchase. You can get quarter shares in a one-bed apartment for 120,000, and in a two-bed apartment for 150,000. Eighth shares in a three-bed property are being offered for 140,000. We are getting a lot of interest from the UK and even from Germany, even though the concept is not as well-known there, says Marchington. She believes that as the public becomes more acquainted with fractional ownership, it is likely to spread in popularity. Palheiro offers a rental service to provide an income for investors who do not use any of the weeks they own, along with a full property management service. People get hooked when they visit Madeira, she says.

The Palheiro golf course itself is famed as one of the most scenic in Europe, sitting 500 metres above the ocean and surrounded by pine forests, flowering shrubs and lush vegetation. An awardwinning restaurant is on site to satisfy hungry golfers after their round. Back at the home of golf in Scotland, the Glenmor estate offers high-end timeshare properties next to the Gleneagles development. Besides three championship courses, there is an equestrian school, a Michelinstarred restaurant, and an award-winning spa and hotel. Visitors have included American presidents and royalty over the years, including President George Bush, who cycled into a security guard in the grounds of the hotel one morning. Of the 53 properties offered by Glenmor for timeshare, 80 per

cent of the availability has been sold, according to Nigel Roberts at the development. You can exchange with other owners and rent out your share, he adds. Gleneagles is conveniently situated a little way north of Glasgow and Edinburgh, meaning that there is good access to train, road and air transport. The fantastic coastal links courses of St Andrews and Carnoustie are a short drive to the east, while Gleneagles itself offers a state-of-the-art golf academy, with professional tutors using the latest computer software to analyse your game. The main course ranks among the finest in Europe and will host the 2014 Ryder Cup. Straddling the Atlantic, Ocenico Prestige Residence Club offers a fractional ownership product on its seven current golf resorts, including The Peninsula at Hampton Lake in South Carolina, Cobble Beach Golf Links & Residences in Ontario, Canada, the Amendoerira Golf Resort in Portugal and the Waterford Castle & Golf Resort in Ireland. Ocenico offers members the chance to own a portion of a five star resort, play on championship golf courses, use world class spas and enjoy fantastic on-site facilities and amenities, says Severine Utinger at the resort. We offer a two-part concept eighth share property ownership together with residence club membership, adds Utinger. Ocenico has developed a flexible solution under which it operates its Prestige Residence Club, which means that rather than

owners having clear and fixed dates when they are able to use their property, they are provided with a combination of four weeks pre-planned occupancy and unlimited space-available occupancy. Owners have the additional benefit of access to the other participating clubs within the portfolio, which can be reserved on a space-available basis, again offering flexible and unlimited use, subject to reservation policies and availability.

end property who do not wish to commit to just one location but have access to an array of luxurious golf, beach and ski destination clubs worldwide, says public relations firm Luchford, which is managing the Ocenico account. Prices for the Amendoeira Golf Resort start at 175,000 for an eighth share of the freehold in a four-bedroom villa. Also based in Portugal, the Pine Cliffs Premier Club has developed a scheme to suit the needs of busy parents: they are offered two fixed weeks during school holidays along with three flexible weeks during the rest of the year. Prices here start from 165,000 for five weeks in a twobedroom townhouse. Premier Club offers us the guarantee of being able to come back each year for two weeks during our childrens school holidays and the flexibility to choose three weeks during the rest of the year to come with our friends, say fractional owners Charlotte and Pierre at Pine Cliffs. Coming back to Pine Cliffs with its magnificent cliffs and to this welcoming country is already part of our life. With service provided by the Sheraton Algarve Hotel, the resort also includes a golf academy, several swimming pools, a tennis academy, a beauty and hair salon and a kids club. Down at the beach there are golden sands, while the golf course is surrounded by pine trees. Pine Cliffs is part of the portfolio of United Investments Portugal, itself owned by the IFA Hotels and Resorts consortium, based

People purchasing fractional ownership are not principally motivated by investment factors. It is predominantly sought as a lifestyle investment
The asset ownership at Ocenico means that you own a freehold equity share in the property which can be enjoyed, sold, willed, deeded or placed in a trust like any other real estate purchase. And it is an asset that can appreciate over time, says Utinger. It also provides members with access to a range of other services, including the use of a Sunseeker luxury cruiser, executive car transfer services, an in-house concierge service and membership of world class golf courses. This exclusive residential club is aimed at investors seeking high-

Homes on the Glenmor Estate

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Views from Palheiro locations are the second most popular factor and in total, more than half of all European fractional developments involve either beaches or golf. This helps to account for the top spot for Portugal in the European fractional listings: the country hosts 20 per cent of all European developments, followed by 18 per cent in France, 14 per cent each in England and Spain and 11 per cent in Italy. The popularity of golf-based resorts is also down to the lifestyle choices of buyers. People purchasing fractional ownership are not principally motivated by investment factors, states the Fractional Life Trends in Fractional Real Estate Report Europe 2009. It is predominantly sought as a lifestyle investment. An ageing population enjoying healthier lifestyles and keen to play sport for many years of retirement particularly in countries with year-round good weather has increased the demand for such properties, while the global economic slowdown and the increasing price of air travel has decreased the demand for long-haul travel and increased the willingness of investors to consider fractional purchases. Although the credit crunch has had an impact on many buyers, many purchasers of fractional ownership are cash buyers and are therefore not dependent on obtaining a mortgage, says the Fractional Life report. This applies especially to older buyers who have paid off their mortgages and have the time to devote to golf. These buyers may also be attracted by the way fractional ownership typically removes the need to deal with maintenance and service issues, together with the ability to will their equity share in a property to their children. From the sand dunes of Scotland to the pine forests of the Algarve, fractional properties next to golf courses are likely to blossom in increasing numbers in the years to come.

Palheiro
www.palheiroestate.com Tel: +351 291 794 015

in Dubai. This group is a leading international tourism service provider, specialising in luxury property and leisure. Pine Cliffs won the Best Resort in Portugal award at the World Travel Awards in 2004, 2005 and 2006. At Pine Cliffs, members are treated to 24-hour security, VIP treatment on arrival, 24-

hour room service, discounts in restaurants and bars, tennis and beauty treatments in the resort and five-star hotel service in each apartment. Pine Cliffs Premier Club owners automatically become members of the Pine Cliffs Golf & Country Club, affording them affiliation to the Portuguese Golf Federation,

giving them an official and internationally recognised handicap. At Fractional Life, managing director Piers Brown comments that owning a property though a fractional scheme is similar to joining a golf club. You pay a joining fee, just like you pay for a percentage of a property,

and then you pay an annual fee. Fractional ownership has the same kind of advantages that golf club membership brings. Certainly golfers have been quick to adopt the fractional buying concept: more European fractional developments are based around golf (23 per cent) than any other factor. Beach

Glenmor
www.gleneagles.com/glenmor Tel: 01764 694321

Oceanico
www.oceanicodevelopments.com Tel: +351 282 320 688

Pine Cliffs
marketing@pinecliffs.com Tel: +351 289 500 300

Driving force
The Lodges at Aberlady are convenient for Edinburghs Hogmanay celebrations and the joys of great golf courses

Palheiro Village, Madeira Fractional Freehold

ith stunning views of the Firth of Forth, the Lodges at Aberlady are on the doorstep of the Scottish capital Edinburgh, close to major road, rail and air links and crucially for many potential owners surrounded by some of the worlds greatest golf courses. Muirfield, North Berwick and Dunbar are all a short distance away, while the fantastically scenic parkland courses of Haddington and Musselburgh are also nearby. We can also take guests into the Renaissance Club, where membership is 50,000 a year, adds Geoff Wood, managing director of The Lodges.

Three-bedroom luxury villa - Eighth fraction 140.000

Madeira - the floating garden of the Atlantic; temperate year-round climate Palheiro Estate - Access to golf, spa, hotel, gardens, heated outdoor pool, bar and sun-deck

The accommodation sleeps up to 10 people and the product can be bought in small fractions, making it affordable to a wide range of budgets. If a group of friends bought a fraction at 117,500 and made full use of the 40 available places for owners over the annual entitlement, the purchase price per person would only be 2,937.50.

And once youve acquired your lodge, you can plan to celebrate at the biggest New Year party in the world, on the streets of Edinburgh.

Fully serviced luxury properties in award-winning Palheiro Village

Contact UK freephone 0808 1293 872 or email info@ fivestarfractionalownership.com

T. +351 291 794 015 F. +351 291 794 022 fractional@palheiroestate.com www.palheiroestate.com

20425 ADS

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Cookielicious, 72 ft Oyster yacht

Sea change
A growing number of fractional schemes offer all the benefits of yacht ownership without the headaches

ts a standing joke among boat owners that their beloved craft are maritime money pits which are costly to maintain and berth, even when theyre not being used. So it was only a matter of time before the fractional ownership concept was applied to yachts. Under fractional schemes, buyers each own a share of a new boat typically 1/8th and pay a proportional amount of running costs on top of the purchase price. A usage plan is drawn up, allowing 40 to 45 weeks per year sailing shared between owners. The boats are usually sold after three to five years, with buyers taking a share of the proceeds. SmartYacht is selling fractions of a range of luxury motor yachts. For example, a 1/9th share of a new Ferreti 630 costs 120,000, plus 49,000 annual costs. Head of marketing and sales Verena Stattner says: SmartYacht is meeting a need and bringing top-class sailing within the reach of new groups of potential buyers. The majority of fractional schemes offer a range of motor cruisers, but those who hanker after a luxury sailing boat are being targeted by Baker Marine, which is selling quarter shares in Cookielicious a 72-ft Oyster yacht which sleeps ten. For 800,000 plus 50,000 annual

running costs, buyers are entitled to at least eight weeks sailing per year. Mario Budwig of Baker Marine says: Most people owning a yacht of this size rarely have the chance to use it more than eight weeks a year, so our scheme offers all the enjoyment at a fraction of the capital cost. Boatmaker Curvelle is offering 1/8th shares of its 33-metre luxury motor yacht catamarans. A management company services and crews the yacht, and owners share the running costs. A share costs 1 million

and guarantees three weeks summer cruising in the Mediterranean and two in the Caribbean each year. If the yacht is not being used, owners can charter it and share the profits.

Baker Marine
www.cookie72.com

Curvelle
www.curvelle.com Tel: 07509 160234

SmartYacht
www.smartyacht.net Tel: +423 793 93 55

A place in the city

Fractional property ownership is not just for the holidays: business travellers are increasingly keen on a concept which combines comfort and cost-efficiency
Sitting room, 47 Park Street

the building is leasehold rather than freehold, the value will diminish over time. This quirk of leasehold ownership highlights the many varieties of fractional structure that have emerged in recent months and years. Every fractional offering has a slightly different model, points out Issy Lowndes at Luchford public relations, who handles media relations for 47 Park Street. You have to work within the laws of the land, but these laws differ from country to country. The concept of 47 Park Street was designed for those who travel frequently to the capital, providing members with an alternative to second home ownership as well as a significant financial advantage over staying in a luxury hotel suite. The developers believe that 90 per cent of customers are business travellers. The Edwardian-style townhouse was built in 1927 and combines neo-classical and Regency styles. Each residence reflects the elegance of a bygone era, says Marriott. A member can enjoy a wealth of modern amenities, yet there remains a wonderful timeless, discreet atmosphere combined with a highly personalised, attentive service. Top-end kitchen facilities include Villeroy & Boch cookware and china, the bathrooms are clad in marble and the king-sized beds are covered in the finest linen. Valet service and 24 hour in-room dining ensure that guests are well fed and comfortable, while a private entrance to the Michelin twostar restaurant Le Gavroche is another subtle benefit. With prices starting from 111,000 for the 21-days-a-year package, 47 Park Street was voted all round fractional offering of the year by Fractional Life earlier this year. The criteria for this award is straightforward that it is the best all-round fractional offering in terms of location, service, building standards, and benefits to Members, says Piers Brown of Fractional Life. The appeal of fractional ownership to the consumer is growing, and it is increasingly clear fractional is the financially savvy way to achieve a desired lifestyle but without an excessive outlay.

Thank you to those who view the 47 Park Street lifestyle as the ideal way to own a home in Mayfair. We are delighted to receive this accolade, says project director Jennifer Massey. Dr Adam Farkas, a banker in Budapest and a 47 Park Street Member since 2007, comments that his main motivation for this purchase was ease of use. I had been thinking about buying in London, but didnt want full ownership. I didnt want to deal with the problems of letting a property and, as a banker, I know that financially, it would be a bad investment if the property is left vacant for most of the year.

A member can enjoy a wealth of modern amenities, yet there remains a wonderful timeless, discreet atmosphere combined with a highly personalised, attentive service
Raymond de Motte, an American businessman from Idaho and a member of 47 Park Street since 2005 explains, It is the location and the convenience that brings me here. The concierge is just fabulous; I send an email and I know my requests will be taken care of. Membership comes with a range of additional extras, including entry to some of the most exclusive London clubs. Similar fractional offers are available in Paris and are in discussion for Barcelona.

ppealing to the business travel market as much as the vacation buyer, urban fractional ownership and membership have recently sprung onto the fractional scene, creating a buzz on both sides of the Atlantic. In New York, Hilton Grand Vacations first foray into fractional is just about to launch on West 57th Street, offering 161 luxury studios, one-bedroom and penthouse suites over 28 storeys between the Avenue of the Americas and Seventh Avenue. The property is due to open on July 3 this year, just in time for the US Independence Day celebrations the following day. Our vision is to create a distinctive shared ownership project from the ground up in New York City, says Hilton GV president Mark Wang. West 57th Street by Hilton Club transcends traditional timeshare and continues to experience high demand. Hiltons traditional product has been high end

timeshare property across the US, in holiday destinations such as Las Vegas and Hawaii. This is a more chic and upmarket product, says Howard Nankivell at Hilton. Its deeded real estate, based on weekly increments. Even though it is difficult to sell high end real estate in New York at the moment, the sales figures have exceeded our expectations, says Nankivell. If we continue to sell this well through turbulent economic times we intend to take this blueprint global. Its a very exciting way of selling property. The property has been constructed to exacting standards, with a luxury spa offering massages, body treatments and therapies; the apartments have floor-to-ceiling windows, state-of-theart entertainment systems and marble and granite surfaces throughout each residence. Geographically, West 57th Street by Hilton Club sits at the heart of Manhattan, close to Central Park,

Carnegie Hall, the Lincoln Center and the Museum of Modern Art. The worldclass shopping opportunities of Fifth Avenue are just a moments walk away. Prices range from $33,900 per week for a studio to $117,120 per week for a penthouse, including membership of Hilton Grand Vacations Club. We are proud to incorporate a sophisticated array of amenities and ownership privileges, says Wang. Hilton Grand Vacations Club and The Hilton Club provide exclusive exchange, leisure travel and reservation services for their 127,000-plus members. Over in London, a similar location has been chosen for Grand Residences by Marriott for Londons first urban fractional membership scheme. Members can buy 21 nights per year at the 49-suite building, known as 47 Park Street, lasting until 2050. They receive deeded interest in the property, which can be sold on, though because

West 57th Street by Hilton Club

www.West57thStreet.com/direct Call Freephone 00800 3000 0001

47 Park Street
www.47parkstreet.com Tel: 020 7950 5528 The view from West 57th Street

consider Your options

London
residence

The appeal of this option lies in its versatility. Discover a truly flexible and hassle-free way of life in London and enjoy a beautiful home with a unique five-star service. 47 Park Street is an innovative concept in residential club membership giving you a luxurious Mayfair residence at a fraction of the cost of second home ownership.

Membership includes: Flexible usage to fit around your time in London Privacy, security and services of a luxury hotel Storage of your belongings between visits 24-hour access to an in-house concierge Attractive alternative usage options A host of Member benefits One- and two-bedroom residences from 549ft2 to 1,023ft2 Managed by Grand Residences by Marriott One-bedroom residences from 111,000 Two-bedroom residences from 209,000

Discover why our Members are choosing 47 Park Street over outright property ownership Tel. +44 (0)20 7950 5528 Web www.47parkstreet.com Email info@47parkstreet.com

Lifes a beach

or a ski-slope, or a chic city-centre pad, while private residence clubs may be the way forward
t the upper end of fractional property use and ownership, private residence clubs have evolved to offer customers access to exceptional properties. One such is The Hideaways Club, with its portfolio of luxury locations in France, Spain, Switzerland, Italy, Turkey, Morocco and Croatia, with a further couple in Mauritius and Borneo. With membership of The Hideaways Club you can use any of your beautiful properties throughout the year, and you own a share in all the Clubs property assets and therefore participate on any growth in the value of the whole portfolio, points out Gemma Lester at The Hideaways Club. Usage is very flexible. If you cant use the weeks you planned to, then you can share it with your friends, family or even business associates, which many destination clubs dont allow. The properties are split between beach and ski locations, with chalets in Chamonix and in the Four Valleys region of Switzerland, along with villas in Provence, on the Turkish Riviera and in Mallorca among others. The homes, say The Hideaways Club, are stylishly furnished, efficiently maintained and always available for you and your family to enjoy. Another company with a good range of beach resorts is Elite Destinations, an offshoot of Real Estate Equities, based in Saint Paul, Minnesota. Formed in 1970, Real Estate Equities has developed, owned and operated more than 9,000 residential homes in the upper Midwest of America.

says Elite. By inviting small groups of like-minded owners to partner with us in boutique vacation investments, we enable our owners to realise the dream of owning personally meaningful properties while making sound real estate investments. Over its several decades of real estate experience, Elite has learned to value six key principles: buy smart, maximise rental income, serve owners well, satisfy renters, care for properties and create and capture value, says the company spokesman. This ensures that your vacation home investment is solid.

ownership because these costs are shared amongst multiple owners, says Alan ONeal of Axiom Capital Group, who developed the Magnolia model. We have created a residence club that provides an exceptional family environment, in terms of comfort and amenities. Highway 3-A sees a lot of repeat visitors and we are pleased to offer them affordable yet luxurious second-home-ownership that will enable them to fully enjoy their vacations in this beautiful part of the Emerald Coast. Residence clubs are an increasingly popular concept in the US, as people discover the flexibility they offer. Shared ownership market research firm Ragatz Associates has reported continued growth in the industry since 2006, with total sales easily topping $1 billion. This is the most logical vacation home ownership option, says Steve Dering, whose DCP International consulting company pioneered the Equity Residence Club concept when it opened the Deer Valley Club in Utah in 1992. Members own deeded real estate in a prime location that is priced for todays market. Not only is the purchase price commensurate with the amount of use but the insurance, taxes, utilities, maintenance, replacement reserves and staff expenses are shared amongst owners. The value is undeniable but what our buyers prize most in the high level of personalised service that Magnolia offers. Besides a fitness centre with sauna, steam room and massage room, owners benefit from a pre-arrival grocery service, complimentary bicycles, access to the beach via a protected boardwalk and staff who will deliver lounge chairs, umbrellas and coolers to the beach. The Private Residence Club has an expansive rooftop deck with a heated pool, hot tub and two outdoor grilling areas.

This is the most logical vacation home ownership option

Income generated through rental of the time owners dont use is divided fairly among the partners based on each ones level of personal use. Fairness is the key principle of the Elite model, adds the spokesman. Adding to beach properties in the Turks and Caicos Islands, the US Virgin Islands, Tuscany, Los Cabos, Hawaii, Florida, Elite offers investors the chance to own a portion of properties in London and New York, along with ski vacation options in Colorado. Further additions to the range are planned for Barcelona, Provence in France, Tuscany in Italy, Costa Rica and Oregon. Floridas Emerald Coast has a well-established reputation as a holiday destination, with its miles of white sandy beaches and blue seas. Along Highway 30-A, in addition to beach life, there are miles of coastal bike paths and great restaurants, from oyster bars to open air seafood cafes and romantic bistros. Magnolia Private Residence Club launched its fractional ownership scheme here in 2008, offering investors a slice of luxurious vacation real estate on the Emerald Coast at a fraction of the normal price for a whole property, without the accompanying hassles of full direct ownership. As Floridas increasing property tax and insurance costs have slowed down the real estate market, residence clubs have proven to be an attractive alternative to whole

The Hideaways Club, Villa Dorada, Sotogrande

Find the Right Balance For Your Investment

With hundreds of assignments completed worldwide and many more underway, NorthCourse is uniquely positioned to help you create and implement a strategy that can make your leisure real estate project successful and profitable. From our product expertise in Timeshares, Fractionals, Private Residence Clubs, MixedUse Developments, and Condo-hotels, to our wide range of services, including Feasibility Studies, Operator Searches, Workout Strategies, and Sales and Marketing Advisory Services, NorthCourse offers solutions to fit your needs.

A Global Provider of Leisure Real Estate Advisory Services Please visit us at www.northcourse.com or call +97 14 5092800.
2009 NorthCourse, Inc. All Rights Reserved. Printed in U.S.A.

This deep background as real estate investors led us to invent an ownership model based on the traditional fractional ownership that combines the lifestyle benefits of great vacation homes with the investment benefits of real estate ownership, says an Elite Destinations spokesman. Elite Fractional is a unique and insightful shared ownership model that did not previously exist in the vacation home industry. The Elite fractional ownership model enables a small private group to equitably and conveniently share ownership in an extraordinary vacation home in a desired destination,

Hideaways Club
www.thehideawaysclub.com Tel: 020 7824 9944

Elite Destinations
www.elitedestinationhomes.com Tel: +1 866 650 4334

Magnolia
www.magnoliaresidenceclub.com

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The week shall become strong

The Hever Hotel and Country Club

Resort developers are coming up with ever-more imaginative and attractive offers to encourage new owners into the market

etchey Leisure one of Europes leading leisure resort developers has launched a fractional version of its popular and flexible Infiniti club, providing members with holidays for ten to 15 years at its Infiniti Resorts, with the added benefit of receiving a shared interest based upon the actual resort apartment. The apartment will be sold between 2019 and 2024 at the best market conditions and the net sale proceeds divided amongst the fractional members.

The first two Petchey Leisure Resorts participating in the fractional scheme will be Club la Mar in Tenerife and Hever Hotel and Country Club in Kent, England. Club la Mar has been recently refurbished and has 42 well appointed two-bedroom, two-bathroom apartments in the fishing village of Puerto De Santiago on the SW coast of the island of Tenerife. The Hever Hotel and Country Club is set in the countryside and borders the renowned 18-hole championship Hever Golf Course. The accommodation comprises

newly refurbished hotel suites in former stables with a choice of one or two bedrooms. Facilities include the Stables Bar and Bistro. The Infiniti Fractional offer is a step-up from normal Infiniti membership. The minimum fractional share is a six-week period that is then translated into Infiniti points to spend on holidays. The existing Infiniti club provides members with holidays at its and other resorts around the world. Members

purchase points which they can then spend on the holidays that they want: they can choose where, when, and for how long they holiday midweek and weekend breaks are available as well as week options. They can even choose the size and style of their accommodation and the number of holidays they take in a year. Points can also be used to exchange into the Global RCI resort portfolio and to purchase discounts on a range of cruises. Infiniti fractional members will receive all of these benefits without having to pay annual

maintenance, management or Points fees. In addition, all Infiniti Club members receive a special welcome at the Infiniti Platinum Resorts, such as flowers and wine on arrival and additional benefits such as food and beverage discounts, more frequent maid services and dedicated customer service and reservation centres. Andrew Walton, operations director of Petchey Leisure, commented: Our new

Win a fantastic Holiday and visit the real world inspiration for our participating theme parks
In conjunction with the launch of the Infiniti Fractional product, Petchey Leisure has extended their fantastic competition as a readers offer, in order to enter all you have to do is answer the simple question correctly and register your details on our website: In order to register, please go to:

www.Avanti-passport.com/TTPC
You will then be requested to answer the question and if you provide the correct answer you will then be required to complete the details requested. Choose between a Kenyan safari, a Patagonian Cruise or an Orlando Extravaganza, for two people up to a value of 3,000. The closing date for this entry will be 30th June 2009.

Eurodisney is located next to which European Capital City? Rome Madrid Paris

There are also hundreds of runners up prizes in this competition which will give you the opportunity to visit one of Petchey Leisures resorts and visit one of the participating theme parks. To find out more about the competition and participating resorts please visit the website at www. Avanti-passport.com/TTPC Full terms and conditions of the competition are available at www.Avanti-passport. com under the promotion code TTPC. Promoter: Leisure Dimensions Limited, Unit D, Block 4, Shannon Business Park, Shannon, Co. Clare, Ireland. The promoter is part of the Petchey Leisure group of companies.

11
Infiniti Fractional scheme provides the best of outright holiday home ownership, namely a real share in the property asset without the significant capital outlay, with the benefits and flexibility of timeshare. Holiday homes can become a burden the cost of repairs and renovations and the limited holiday choice. membership of the Infiniti Club and RCI with all of the inherent flexibility. Petchey Leisure is one of Europes best established timeshare developers. Formed shortly after World War II by Jack Petchey, it grew from a hire car company into a property business, notably with Clube Praia da Oura in the Algarve. This development pioneered timeshare in Europe and put Petchey on the map. The company currently owns and operates nine resorts across Europe, including Grangefield Oasis, Marbella; Vera Beach Club, Almeiria; Hever Hotel & Country Club, Kent, three resorts in the Algarve and two in Tenerife. As far as were aware, this is the first offer of its type in Europe, says Walton. In the Middle East, Select Ownership has pioneered a similar form of vacation model, specialising in properties in Ras Al Kheimar in Dubai and others in Turkey. We can advise on everything from currency exchange, to furnishing your property, rental management and re-sale, says Helen White at Select.

Views from Club La Mar

Membership is a step up from timeshare as it offers a shorter ownership life with a share in the sale proceeds upon disposal of the property

On the other hand, traditional timeshare is very flexible but at the moment it is difficult for a member to sell on the open market. Fractional Membership is a step up from timeshare as it offers a shorter ownership life with a share in the sale proceeds upon disposal of the property after a 10 to 15 years period. The advantage of the Infiniti Fractional offer over other fractionals, is full

Petchey Leisure
fractional@petcheyleisure.com Tel: 0845 468 0797

Select Ownership
www.selectproperty.com Tel: 0870 111 8890

12

13

Buy as you fly

Card schemes offer a way into private aviation at a significantly lower cost. Blocks of flying time are purchased, to be used on a specific class of aircraft. Jet Republic offers 25-hour blocks with four jet options light, midsize, large or global. Prices start from 115,000. The card option is appealing to those who find themselves having to cut their cloth according to recessionary times but cant stomach the thought of going back to scheduled flights. Jet Republics research estimates that the European jet card market is worth around 180 million a year. Over the past five years, it has shown annual growth of around 40 per cent, and although this is expected to slow considerably this year, the company expects any decline in the market to be prevented by a new breed of card holders former owners of private jets. It says there are currently more than 300 used private jets for sale in Europe double the number 12 months ago and that many of these planes owners are opting for a jet card. As a comparison, Jet Republic estimates the annual cost of running a midsize private jet for 200 hours at around 2.77 million a year, whereas the companys Jet Card buys 25 hours flying time for 175,000, with the equivalent 200 hours usage costing 1.4 million. Normally you would expect only around two per cent of potential leads for jet cards to come from people who are downsizing and trying to sell their own jets or have managed to do so. However, currently around 10 per cent of our Jet Card leads are from this group, says Jonathan Breeze. Other private jet operators are feeling the impact of the recession, but not in the same drastic fashion as scheduled airlines, and they are facing the future with confidence. Bill Kelly of NetJets Europe says: We find our business model of fractional ownership to be more relevant than ever in this climate as it makes for an efficient way to fly our customers pay only for what they use. Despite our flight hours being down slightly, weve not witnessed a significant change in our customers flying habits. In fact, in recent times weve seen some of our corporate clients beginning to fly an increasing number of hours. The company, which is part of Warren Buffetts Berkshire Hathaway empire, flew its customers to 881 airports in 246 countries in 2008. Around 80 per cent of its flying hours are

taken by its fractional ownership clients a 1/16th share in a seven-seater Hawker 400XP costs from $400,000 and it also offers the Private Jet Card which entitles the buyer to 25 hours flying time, from 131,000. Another of the industrys main players is VistaJet, which operates a different business model from most operators. Rather than offering fractional ownership or a card programme, VistaJet which has bought the largest privately owned fleet of Bombardier jets outside the Americas operates a Program (a bespoke schedule which takes into account the customers usage, budget and aircraft preference), an on-demand charter service, or a combination of both, which it claims offers customers real cost advantages and added efficiency.

It may be regarded by many as a luxury, but private aviation is more accessible than ever, thanks to fractional ownership

t has been well documented that the airline sector has been one of the worst hit by the recession, but private aviation operators are adapting to the current financial situation by offering high-net-worth individuals and busy executives a

range of fractional ownership and flexible usage schemes. In these times of intense scrutiny on what are perceived as executive perks, private jets especially outright ownership are viewed by some as the ultimate luxury.

But for those whose business lives involve constant long-distance travel, private aviation saves so much time that it is a necessity, not a luxury. As Bill Kelly, CEO of NetJets Europe says: Business aviation is one of the few things that can further enhance the

productivity of an individual or business particularly pertinent at times such as these. Executives who fly privately often already work an 80 hour week, have a secretary and Blackberry a business jet is one of the few things that will further enhance their productivity. It provides them with an office that moves. Jonathan Breeze, CEO of private jet company Jet Republic, adds: The benefits of flying by private jet are such that once you have done it, people find it very difficult to go back to flying chartered or scheduled. It is even harder to do this when mainstream airlines continue to close routes our research into 15 European national carriers reveals that over the past year, for every route they opened, they closed two. Fractional ownership and usage programmes can offer buyers all the convenience of owning a private jet at significantly lower prices. The two main purchase options are fractional ownership and card programmes. Under a fractional ownership scheme, buyers purchase a share usually a minimum of 1/16th of a new aircraft for a fixed term, after which they sell their stake back to the operator for a fair market value, or purchase a share in a new aircraft. Additional costs include a monthly maintenance fee and an hourly charge when the aircraft is in use. As an example, Jet Republic is offering 1/16th shares in the Learjet 60 XR, which it describes as the worlds best midsized business jet, from $843,750, with reduced hourly fees of 4,900.

Fractional ownership and usage programmes can offer buyers all the convenience of owning a private jet at significantly lower prices
Its prime target market is the seriously wealthy ultra-highnet-worth individuals who fly between 100 and 300 hours a year. The company has invested heavily in developing markets such as Russia and the Middle East. Moscow is now a key hub with Russia accounting for around 40 per cent of VistaJets business. Chairman and founder Thomas Flohr says: The private business aviation market has contracted by 15 per cent, largely due to the global economic slowdown. Customers are always looking for luxury and guaranteed availability, but are increasingly sensitive about costs. We recently announced a 25 per cent price reduction on all day return and overnight return flights and 20 per cent on round trips for Program customers.

Jet Republic
www.jetrepublic.com 0207 959 6772

Net Jets Europe

www.netjetseurope.com 0207 361 9620

VistaJet
www.vistajet.com 01252 526630

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Fractional action stations

Homes at Borgo Di Vagli, and the pool, above right

Fractional ownership is flourishing in Europe, where the concept evolved, and is now spreading successfully in exciting new areas
s the fractional ownership concept has expanded from its original home in the US, spreading to new countries, new types of property and developing new models, its attraction to investors and

to golf and Garden Route sightseeing. The name Zorgvliet means let your sorrows flee in Dutch and encapsulates the sense visitors get at these outstanding locations. Prices for a weeks share in a vineyard lodge start from just R96,000 (around 8,000) rising to R324,000 (27,000) for three weeks at the Dinkweng safari camp. Ambitious new infrastructure projects are underway in South Africa as the FIFA Football World Cup 2010 approaches, including major new road and rail links. And for investors who have dreamed of owning a vineyard, the answer could be a luxurious hotel suite on the Zorgvliet Wine Estate in Banhoek Valley near Stellenbosch, just 40 minutes from Cape Town. Fractional

owners are entitled to five cases of wine per year, with their own personalised wine label. The Vineyard Lodge is built around a swimming pool in an inner courtyard; all rooms have en-suite bathrooms and air conditioning. Any visitors coming to South Africa during the upcoming England cricket tour or the British and Irish Lions tour are welcome to sign up for a free wine tasting. Contact Zorgvliet for details. Six hundred years ago, the first stones were laid at the Tuscan village of Borgo di Vagli. Today, following a 10-year renovation period, the first sales have been made on a fractional ownership scheme at Castello di Casole. An initial development of 100 apartments has already sold very well after launching in 2006, and

second-home owners has risen commensurately. There are now at least 90 developments around Europe offering fractional ownership, from the Tuscan delights of Castello di Casole, to the castles

and marinas of England, to the beachfront villas and golf course properties of Portugal and the ski chalets of France and Switzerland. Most recently, the concept has headed southwards to the tip of Africa, where Zorgvliet private residence club has just

announced the launch of a shared ownership scheme at all of its five-star luxury residences across South Africa. Each destination has a distinct specialisation, from gameviewing safaris, to wine making,

Many happy returns

Own a piece of golfing history!
Fantastic opportunity to own a share of a luxurious 5 bedroom golf lodge in Scotland, the home of golf!!
Special introductory launch price of 117,500 per fraction (offer only applies for the first 6 fractions). Take advantage today as there are only 36 fractions in total! Try before you buy: Free golf and accommodation provided. Call now or email info@fivestarfractionalownership.com on U.K. free phone 0808 1293 872 to receive our E-brochure or to book a discovery trip.

You can buy a week in a wonderful holiday home at Gleneagles every year until 2058 for a one off payment of as low as 10,030. The Glenmor exclusive holiday homes are set within the spectacular grounds of the hotel. Choose from two, three or four bedroom houses where no expense has been spared. Enjoy the facilities and experiences at Gleneagles including a Michelin star restaurant, country pursuits activities, three championship golf courses and the new Spa - The Spa at Gleneagles by ESPA has been awarded Best UK Hotel Spa 2008 by Cond Nast Traveller Readers Travel Awards.

For further details visit www.gleneagles.com/glenmor or call 01764 694 321.

See website for details.
Purchasers may only rely on information in the Disclosure Document which is available on request.
The GLENEAGLES and GLENMOR words and EAGLE device are trade marks.

15
CARS

Make the most of your private vroom

he thrill of the open road: finding yourself behind the wheel of a great car with billiard-smooth asphalt snaking out in front of you, the sonorous bark of a flat-plane crank V8 urging you on to the horizon, and all with not another car in sight: it adds up to perfect petrolhead bliss. But its an unfortunate truth that such circumstances rarely coincide, and much of the time you find yourself unable to truly appreciate your supercar. Cogher believes that the economic downturn has benefited the scheme, as people who would previously have owned outright now prefer to buy fractional property. They may choose to buy outright in the future, of course, he says. Such has been the demand for Castello di Casole that Cogher and his colleagues are now in search of similar properties in Tuscany and Umbria to satisfy other customers. Members of the scheme can also exchange their time and use other fractional properties, thanks to an affiliation scheme with the Registry Collection. Fractional ownership is ideal for getting behind the wheel of some exotica as you can choose your time based on an excursion to the coast, European jaunt or other special trip. When you just need to get from A to B you can instead use something all the more suited to the task without the worry of your depreciating investment being tucked up in the garage only to emerge when it is due another expensive service.

There are a number of different clubs catering for all tastes from classic through to the current hot super/hypercar covering a range of budgets and club structures - the most oft-used being purchasing points that can be exchanged for driving time based on a grading system around the car itself, time required, weekend/weekdays and season. Currently ecurie25 and Marque II are two of the obvious choices for full-on supercar encounters, with ClubGT offering a more modern/classic bias at a more modest price point, and grandfather of the concept, the Classic Car Club, serving up a selection of classics and modern classics from as little as 1,500. One of the emerging trends in fractional car clubs is the track resort, which allows you to explore these vehicles in their natural habitat: the racetrack. Notable exponents in this

area include Rob Stanburys [formerly of P1] RS Academy, which operates on the points system, but crucially allows members to exploit the cars at Germanys famous Nurburgring, Belgiums legendary Spa Francorchamps and the uberexclusive, privately-owned Ascari Race Resort a short distance from Marbella, Spain. The Ascari Race Resort also offers their own membership club which allows members to enjoy a full calendar of select events at the luxury resort, which incorporates a 26 corner, 3.4 mile track based around choice cuts of the worlds finest tracks. So whether you want to make that special trip all the more memorable or have access to damn-near your own personal racetrack or, heaven forbid, just want to pose in something necksnapping in terms of both looks and acceleration, you will find a fractional offering to suit you.

Zorgvliet

a tenth share in a one bedroom property now costs 63,000, or 96,000 for the same share in a two bedroom flat. We find that our customers generally stay for 28 days a year, but they may want to use the properties more regularly when they retire, says Lee Cogher at Borgo di Vagli. They can also book up several residences if they want to bring friends or relatives, to celebrate a birthday for example.

Zorgvliet
www.zorgvlietprop.co.za Tel: 0800 046 9196

Borgo di Vagli
www.borgodivagli.com Tel: + 39 0575 619660

The revolution has begun

The private aviation experience is being truly redefined. Enjoy large cabin service at midsize prices on the fastest, best equipped and most exquisitely appointed midsize jet in its class the Learjet 60 XR.

Fly from 4,400 per hour as a Learjet Owner or buy the entire aircraft and fly up to 200 hours each year for free
Stunning cabin design accommodates six passengers Connect your BlackBerry or iPhone with onboard Wi-Fi Recline in Sleeper Seats and unwind with the in-flight cinema Enjoy hot food served by a multilingual flight attendant Relax with freshly made espresso, cappuccino or tea Travel to over 1,000 airports in Europe with just 24 hours notice

Private Jet Card | Fractional Share Ownership

JetRepublic.com +44 (0)20 7959 6772 Telegraph@JetRepublic.com