Clubhouse: Learning to Share
Europe embraces the fractional-ownership model.
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ShareFebruary 1, 2008
Although fractional-ownership sales have taken off slower in Europe than they have in the United States, the industry is now changing the continent’s real estate market. "It is not so much the appealing price tag that attracts high-end investors but the lifestyle opportunities that fractional ownership enables," says Jerry Cobb of Europe’s Fractional Ownership Consultancy (+44.148.174.7800, www.fractional.net), a company that offers advice to both property developers and buyers on financing and marketing fractional properties. "With a shared freehold for the price of one property owned outright, you can enjoy three weeks in your own ski lodge in the Alps, then your own farmhouse in Tuscany, followed by your own golf apartment in Portugal. You do not have to undertake repairs on the property or worry about the running of it. Not to mention, you benefit from a share in the capital gains."Cobb says that Portugal is at the forefront of the European
fractionals market, but there are several new projects currently under way, with
a predicted soar in the market for 2008. The following are some of Europe’s most
promising fractional-ownership properties.
England
Cleveland Square
This five-story, 157-room hotel is undergoing a major
refurbishment that includes joining together a row of Edwardian terrace homes.
Best Group, the owner of the property, is offering a number of rooms within the
hotel to overseas buyers as its first private residence club in London. Other
properties are in the Caribbean, South Africa and New Zealand. With views of
Cleveland Square Gardens and a convenient location near Paddington Station, the
hotel will offer partial ownership for £78,500 (approximately $162,000) when it
opens early this year. Owners will receive 100 points per year to exchange for a
room with one night costing around 10 points. The points can also be used at any
Best Group property worldwide.
+44.845.130.9022, www.bestpentic.com
47
Park Street
Europe’s first urban fractional-ownership property, 47 Park
Street, has 49 spacious one- and two-bedroom residences in an Edwardian-style
townhouse located in the heart of London’s exclusive Mayfair district. Opened in
2002, the property is owned by the Grand Residences by Marriott and includes
hotel conveniences such as a concierge, twice-daily housekeeping service and a
florist. It also has an adjoining door to the Michelin-starred Le Gavroche
restaurant and the shortest distance from the curb to the front door of any
luxury hotel in central London—a helpful asset in the rain. Fractional ownership
starts at £106,000
($219,000) for a guaranteed 21 nights per year, with an annual fee of
£5,050
($10,400).
+44.207.950.5528, www.47parkstreet.com
Scotland
Colquhoun Mansion House
Situated on the shores of Loch Lomond, the Colquhoun Mansion
House is a short drive from the Glasgow airport. Fractional ownership of a
two-bedroom apartment entitles buyers to 12 weeks of annual use and the
privilege of a golf membership at the Carrick Country Club. The De Vere Group,
which owns hotels throughout the UK, is developing the 10-apartment project.
One-quarter shares at the property, which features heritage stonework and views
over Loch Lomond and the Carrick golf course, are priced from £199,000 ($411,000) with an
approximate annual management fee of £5,500 ($11,300).
+44.138.975.5625, www.deverefractional.co.uk
Glenmor
Set on the private grounds of the esteemed Gleneagles Hotel
estate in Perthshire, Glenmor is a luxury development of 53 traditional-style
homes. For sale are one-week shares of two- to four-bedroom cottages with prices
ranging from £9,400 ($19,400) for a two-bedroom property in the low season up to
£60,350 ($124,500)
for a four-bedroom property in the peak season. Annual management fees start at
£960 ($1,980), and
the properties are guaranteed in a lease agreement until 2058. Fractional
ownership grants buyers access to the three Gleneagles golf courses, as well as
the spa, bar, restaurants, shooting facilities and falconry school.
+44.176.469.4321, www.gleneagles.com/glenmor
