Fractional Ownership News Fractional Ownership News - Llpi.us

Fractional Ownership News
Fractional Ownership News
The Top 21 Fractional Real Estate Professionals Of 2010
As the fractional ownership property market enters an exciting stage of its development,
Fractional Life profiles 21 of the industry's big hitters and asks them how they think the
fractional sector will fare in 2010.
Claude Attala, Northcourse
As global managing director of property consultants Northcourse,
Claude Attala has an in-depth understanding of the shared ownership
market as well as the intricacies of Middle Eastern real estate
development and tourism. His company provides advisory, research
and sales and marketing services to developers and investors
worldwide, working with both experienced developers and new entrants
in resorts, hotels, timeshares, fractionals, condo hotels, private
residence clubs and destination clubs. Prior to NorthCourse, Attala
served as head of planning and operations at the Qatar Tourism
Authority, and has also held senior level sales and marketing roles with
Rezidor SAS, Intercontinental Hotels, Meridien Hotels and Resorts and Sheraton.
Attala points to research by the UNWTO which predicts that consumers in 2010 and beyond are
increasingly likely to favour domestic and short haul travel over long distance flights. This, he
maintains will see most European fractional buyers looking at locations within a four-hour flight
time of their permanent home. He also says that the most successful fractional schemes will be

the ones in locations beyonf the reach of traditional homebuilders, which make the most of their
surroundings in terms of natural beauty, sports and leisure facilities, and urban centres.
Gregg Anderson, the Registry Collection
As managing director of exchange network The Registry Collection,
Gregg Anderson provides strategic direction to a team of product
managers in eight regional offices, evaluating partner and affiliate
opportunities. He also sees himself as an ambassador for the luxury
shared vacation ownership sector and is a frequent speaker at industry
conferences.
Anderson, who has held positions at Intrawest, ClubCorp The Walt
Disney Company says: “I agree with the financial and development
experts I’ve spoken with that we will see a gradual recovery in the
second half of 2010. Both lenders and buyers will scrutinize opportunities more closely in
regards to location of the project, track record of the developer and project team involved with
the development. Developers who have 'A’ locations, who have a track record of development
success and are aligned with an experienced team of partners will see a great advantage as we
come out of this financial downturn. More potential buyers than ever will evaluate deals based
on usage versus investment which will put more emphasis on developers delivering a
comprehensive amenity package and choosing the right operator who can deliver the exemplary
service this affluent traveling demographic demands.”
Philip Bacon, HVS
Madrid-based Philip Bacon has more than 25 years' experience in
business advisory services, including a 10-year spell with Price
Waterhouse in London and Barcelona, and positions as financial
director for two Spanish resort development companies. Now at HVS,
he launched the company's Shared Ownership Services for EMEA &
Asia division, which specialises in all forms of shared ownership, from
fractional interests to branded residences, particularly within
hospitality-based mixed resort developments.
Bacon says: “The fractional property business will continue to offer
opportunities to both developers and operators who are looking to take advantage of an
increasing awareness on the part of the customer of the need to achieve true value for money for
high ticket items. We will probably see increased concern over the benefits of speculative real
estate investment. So-called 'time poverty' will continue to be part of daily life but the buying
public will also be more demanding in terms of credibility and the matching of promises made
during the sales process with eventual product and service delivery.”

Robin Barrasford, Barrasford and Bird
Worlwide
Robin Barrasford is managing director of agent and developer
Barrasford and Bird Worldwide. He was one of the first UK agents to
realise the potential of Bulgarian property market and formed his
company to bring this emerging market to the UK and educate potential
UK purchasers about the opportunities in emerging overseas markets.
He is a founder member and board director of the Association of
International Property Professionals. Barrasford is a keen proponent of
the fractional ownership model, and is currently selling fractions in
Greece and the UK, with a French scheme in the pipeline.
“Fractional ownership is a great model but what worries me is that there are a lot of people
coming in to the fractional market who are telling developers to add a 50 to 100 per cent
premium to their prices. Fractional property has to offer value or they are going to give all of us a
bad name, and it will be like the dark days of timeshare all over again. One area I can see really
taking off is the up-selling of fractions to existing timeshare owners – that's a very good idea,” he
says.
Piers Brown, Fractional Life
Piers, founder of Fractional Life, has been involved with fractional
ownership for nine years. After completing an MBA thesis on fractional
ownership, he worked as sales and marketing director for a fractional
car club, before founding Fractional Life.
Piers’ responsibilities include spearheading the on and offline growth of
the Fractional Life brand and raising general awareness of the fractional
ownership concept. He speaks on the subject at conferences around the
world and has made numerous radio and television appearances.
Fractional Life has three divisions: interactive, consumer exhibitions and trade conferences.
For 2010, Piers sees several market trends developing: “Traditional timeshare operators will
broaden their purchasing options with fractional ownership products. With the well publicized
success of Seasons Holidays’ 100% sell out of its Forest Hills fractional development in Spain. It
will be no surprise to see other vacation ownership operators innovating their product offerings
to reap similar rewards into 2010. And as the whole ownership market continues to struggle,
developers will increasingly complement their resort sales with fractional ownership products.”
Piers also thinks 2010 could be the year when the first bespoke fractional real estate agencies hit
the market.

Christian Jensen Broby, Marriott Vacation
Club International
Christian Broby is chief customer officer and vice president for
Marriott Vacation Club International's activities, covering Europe and
Middle East. He has principal responsibility for ensuring the
positioning and strategic direction of the business lines across all
disciplines and leads development efforts, including project
management and analysis for new developments, in these regions.
Broby says: “The perspective for the fractional and residential club
sector will mirror 2009 levels…and it isn’t pretty! The buyers’ market remains sluggish, in lieu
of prolonged discretionary spending concerns. The ultra-wealthy segment will continue to have
the ability to invest in lifestyle-enhancing additions, with even greater purchasing power and
advantages, as exaggerated discounts and incentives are extended to maintain some minimal
level of sales pace.
While the 'upper aspirationals' are forced to become more selective with discretionary lifestyle
spending patterns, developers will be under increased pressure to fund development and
commercial activities, as a result of downward pricing pressure extending into 2012. Prolonged
steep discounting and erosion in margins will affect the eventual economic viability of projects,
resulting in an overall inventory supply side contraction over the longer term. Brand perception
and credibility in the market place will become more important than ever, as the developer’s
financial solidity will be on the forefront of any buyer’s check list.”
David Burden, Timbers Resorts
David Burden is CEO of Timbers Resorts, a company synonymous
with high-end fractional resorts such as Castello di Casole in Tuscany
and One Steamboat Place in Colorado. Burden describes Timbers,
launched in 1999, as “ground-up developers of some very special resort
projects throughout the world – including the design, local approval,
construction, sales and marketing, as well as in some cases, the operator
of these wonderful properties. We also offer our services in all of those
areas of expertise to certain groups and investors for resort projects
where we can make a difference and achieve success for the owners.”
Burden predicts: “The residence club and fractional properties trends and opportunities in 2010
will likely follow the settling and shake-up of various markets in 2009 with some well positioned
properties starting to experience momentum as the markets in which they reside start to recover.
The market is very interested in traditional destinations and may gravitate toward residence club
offerings as making more sense than whole ownership. As always though it will first depend on
location, finished product and its operation as well as reputation versus just a great deal.”

David Clifton, Interval International and
Preferred Residences
With more than 30 years' experience of the shared ownership industry,
Clifton has held positions at Hilton Grand Vacations and Welk Park
North. Now based in Dubai, he is managing director for Europe,
Middle East, Africa and Asia for Interval International,responsible for
implementing all business development activities in these regions.
These include affiliating resorts with Interval’s and Preferred
Residence’s global networks, developing and directing all sales and
resort marketing strategies, as well as managing developer/client relationships.
Clifton says: “More consumers, developers, and governments today understand the fundamental
concept of fractional ownership, its key benefits to all stakeholders, and the strong value
proposition that the industry provides to consumers. Additional developers today are embracing
the concept due to the current economic slow down hindering their ability to sell whole units.
This has coincided with enhanced consumer awareness of the benefits of fractional ownership –
the appeal of second home ownership has diminished greatly over the past several years as real
estate costs continue to escalate in prime vacation markets.”
Jerry Cobb, Fractional Ownership
Consultancy
After a successful career in the finance industry, Jerry Cobb came into
contact with fractional ownership through working with resort in the
Western Algarve. He is now CEO of the Fractional Ownership
Consultancy, offering specialist advice to developers and consumers.
“I still think the market for fractional is huge,” says Cobb. “Despite the
economic downturn, or indeed perhaps as a result of it, ultimately fewer
people will want to buy a property abroad outright and would prefer to know that their costs are
shared. This year, we will see most of the activity in the lower end, with evidence that people
are happier to commit £20 to 25,000 on a fractional purchase rather than any more. There is
currently some reticence in dealing with Euros and evidence from our figures shows people are
also tending to prefer to buy in their own currency.”
“Fractional in the UK is now taking off. People know what they are dealing with. This market
will grow impressively over the next few years and I predict that by 2011 we will see a return of
the aspirational lifestyle second house purchaser, and from then onwards, fractional is going to
boom.”

Steve Dering, DCP International
Steve Dering is the founding partner of DCP International, which
pioneered the world's first residence club – the Deer Valley Club in
Utah, which opened in 1992. At DCP, he evaluates potential residence
club projects and works with developers to structure, market and sell
resort and urban clubs in international destinations.
“More buyers will come into the vacation home market as consumer
confidence slowly returns and pricing is adjusted. Fractional ownership
will lead the rebound. A vacation home is, once again, a lifestyle
purchase rather than an investment, and the inherent logic of fractionals will be magnified by
post-recession practicality. Sales at fractional projects already in the market will increase but
buyers will be 'deal-driven' and compelling sales incentives and/or discounting will be required.
We saw encouraging increases in sales activity at several of our projects during the last quarter
of 2009. Most 'new' fractional developments will be conversions of whole ownership
condominium projects. However, as was the case prior to the meltdown, the fractional concept
will not be strong enough to overcome bad real estate or unrealistic pricing,” says Dering.
David Disick, David M Disick Associates
A former Wall Street attorney, a pioneer of the PRC industry, and a
regular author and commentator on the fractional ownership industry,
David Disick is CEO of David M Disick Associates, a strategic
consultancy involved with fractional real estate. He was responsible for
the launch of one of the first ever PRCs, the award-winning Franz
Klammer Lodge in Telluride, Colorado, in 1994.
He is currently involved in creating Club Elysée, a multi–site
fractionally owned Private Residence Club. The club is looking to sell 144 memberships – nine
per property across its sites, which will include locations in the US, the Caribbean and Europe.
In the forthcoming year, Disick predicts the main issues for the fractional industry will be “the
enhanced opportunities presented by fractional property; including how to successfully raise
financing, and how to market and sell in the current economic and psychological climate. There
will also be an increased focus on the top tier of the market.”
Peter Kempf, Peter Kempf International
Peter Kempf is one of the most experienced individuals in the luxury international real estate
market. Before founding PKI he served as vice president and Midwest regional director for
Sotheby's International Real Estate, director of international real estate for Christie's Great
Estates and CEO-Europe for DCP International.
Looking forward he says: “Overall, I am optimistic. Sales in Q3 and Q4 of 2009 improved for
high-end projects and I think this will continue on a modest level through Q1 and Q2 of 2010. I
think Q3 and Q4 will show even more improvement. Typical institutional lending for developers
will continue to be non-existent causing further delay in the launch of new product. However,
developers with access to private capital should consider beginning project planning now

ecause by the time they have all their approvals the market will have returned. The demand will
improve in Europe because as the concept becomes better known, the acceptance of it improves.
Also, the economic collapse caused a change in the way people look at their resources and will
now consider fractional, something they never would have done before the crash.”
Bryan Lunt, Absolute World
Bryan Lunt is CEO and chairman of the Absolute Group, which has
seven subsidiaries – including Absolute Fractional – and more than 850
employees. His company is pioneering fractional ownership in Asia,
and has partnered with brands such as David Lloyd Resorts and yoo.
“It has become apparent to us that in Asia there is huge demand for a
product in the middle - not a vacation club membership and not full
ownership - our clients were starting to look for half shares or
quartershares. The length of fractions has been decreasing and we
found that four week shares are now proving popular,” says Lunt.
“Exchange programmes are important to fractional sales – we have six resorts with The Registry
Collection and a new one coming soon – we see a great business unleashing naturally due to
market demands. We have some extremely wealthy clients who often own several overseas
properties, but still find fractional ownership one of their preferred investments and also
preferred vacations. I believe there is a massive future throughout Thailand and Asia in general
for the sales and marketing of fractional ownership products.”
Lisa Migani, FNTC
Lisa Migani is director of business development in Europe, Middle East
and Asia with fractional ownership consultants First National Trustee
Company. She has worked for the firm for a decade in Italy where she
is based. Before joining FNTC she worked for vacation exchange
programme Interval International, heading up their Italian operation for
seven years.
Migani sees fractional buyers coming from new source markets in the
next few years, particularly Russia: “If you had the right product in the
right location for the Russian middle income market – which is usually something very different
from what the Brits would buy – you could really do very well.” She also thinks significant
numbers of British buyers are looking at affordable fractions at a price level where financing is
easily available. “They're looking at year-round sunny destinations like the Mediterranean. If you
look at Turkey, where you have also got brilliant golf, the cost of real estate isn't high. Cyprus is
another good option for what I call low- to mid-market fractionals.”

Byrne Murphy, Palazzo Tornabuoni
Byrne Murphy has a track record of bringing American business
models to sometimes hostile European markets and making them work.
A private equity investor and developer of real estate, he is co-owner
and co-developer of the Palazzo Tornabuoni residence club in Florence,
Italy. He also has a data centre operation in Scandinavia; an
engineering company in the UK, and other interests in the US.
“The iconic high end projects will be selling again albeit it at a slower
pace than before the downturn, with on-again off-again momentum. It
will not be just 'luxury' which attracts the buyers (there's plenty of that
everywhere) but those projects which provide 'experience'. The more unique the experience the
more attractive it will be to a specific niche of buyers. Finding those buyers though will require
more customized and more expensive marketing. There will be more collaborative marketing
efforts as well, whether through more innovative exchange programs or marketing campaigns
amongst projects/developers that have not collaborated together in the past,” predicts Murphy.
Howard Nusbaum, American Resort
Developers Association
Howard Nusbaum spent ten years with American Hotel & Lodging
Association and was VP of sales and marketing for Janus Hotels and
Resorts before becoming president and CEO of ARDA. In his current
position he ensures ARDA is a vocal advocate for all forms of shared
ownership.
He says the market is in for “ a thorny short term, but the long term
picture is still quite bright with strong demographics for the foreseeable future. The fractional
marketplace will re-emerge with stronger fundamentals from lessons learned from the credit
crunch, pent-up consumer demand and a savvy purchaser more conscious of wanting to pay for
only the slice the of vacation real estate they have the budget and appetite to enjoy. As an
industry we need to take advantage of this lull in the market place to come together and create a
strategic recovery plan that will support the concept of shared-use as the alternative to second
home ownership. Today’s rational rich want the experiences that come with owning a vacation
home but without the headaches and overhead. Fractional ownership is well positioned once this
recovery is underway to capture more market share.”

Richard Ragatz, Ragatz Associates
A name inextricably linked with fractional ownership, Richard Ragatz
is the founder of Ragatz Associates, a consulting and market research
firm in the global resort real estate industry. The company has worked
on more than 2,500 assignments in 72 countries since its formation in
1974. It specialises in feasibility analyses, business planning and
consumer research for shared-ownership products, including fractional
interests and resort timeshare.
Ragatz says: “Due to ever-changing global economic conditions, it's difficult to predict
performance of the fractional interest industry for 2010. Most likely, sales volumes will increase
perhaps 25 per cent or more over the down year of 2009. Most of the increase will come from
sales of existing inventory rather than from new start-up resorts. All of our consumer research
still finds definite consumer interest in the concept, especially in comparison with wholeownership
and resort timeshare. Financing will remain the biggest challenge, including
consumer, debt and equity. We will most likely see more sophisticated approaches to marketing,
more innovative products and more rational pricing. Performance will not approach the record
year of 2007, but we should be on an upward growth pattern again.”
Sarah Rezak Glasgow, Rezak Resort
Consulting
As president of Rezak Resort Consulting, Sarah Rezak Glasgow works
with various clients regarding their proposed fractional interest luxury
real estate offerings. This can include consumer market research,
feasibility analyses, creation of use plans, and/or facilitation of a client's
entry into the fractional business. She also works with various partners
to launch marketing and sales efforts and successfully monitor them
from the outset.
A former senior consultant with Ragatz Associates, she says: “I expect that the credit markets
will eliminate or at least significantly postpone most new fractional real estate construction plans
in North America in the short term. I also think that the fractional real estate model needs to be
slightly adjusted. Developer financing is a new necessity and should be considered when
analyzing financial feasibility of a conversion or existing fractional product. I strongly believe
the ability and willingness over the next three years to hold consumer paper for at least five years
will separate the wheat from the chaff. I still feel strongly that the concept of fractional real
estate will be successful in the long-run.”

Nick Turner, The Registry Collection
Nick Turner is vice president of business development at The Registry
Collection. Has has more than 20 years' experience in the international,
hospitality, leisure and travel sectors. In his current role he is
responsible for growing the Registry Collection brand and overseeing
new affiliates in Europe, the Middle East and Asia.
Turner says: “In 2010 we will see a lot of activity, lots of launches of
new developments to the market. The primary consumer will be that
middle-income consumer who has been squeezed over the last few
months but is possibly slightly better off due to low interest rates, but
still wants a place in the sun.”
There will be new product types coming to the market, including lots of conversions where
whole ownership resorts will start selling fractions. We are also seeing a growing number if
developers who are incorporating fractions in mixed-use developments from the planning stage.
These projects are in locations as diverse as Montenegro and North Wales. Sales pace will come
down to the age-old challenge of delivering a really good quality product in a triple-A location,
providing a broad range of amenities on site which consumers can pay for on an a la carte basis.”
Preben Vestdam, Valhalla Associates
Preben Vestdam is the president of Valhalla Associates, an advisory
and management company servicing developers of luxury mixed-use
hotel and resort properties in the areas of development strategy, project
feasibility and implementation planning of leisure real estate products.
Valhalla also implements and manages the sales & marketing operation
of fractional ownership products and Private Residence Clubs.
“2010 will be a very active year for the fractional ownership industry.
We are currently experiencing a growing number of luxury leisure real estate developers
interested in exploring the fractional ownership model as a complement to their whole ownership
offering. And with a further recovery of the financial markets giving access to reasonable project
finance, we can expect new project developments returning in key markets. In the resort projects
where we are involved in the sales and marketing of fractional ownership products, we have
experienced that the fractional buyer is returning faster than the whole ownership buyer. So as
the consumer confidence recovers, fractional ownership is a strong product to lead with.”

Veranne Wilkinson, Hutchinson Group
Veranne Wilkinson is managing director for the Hutchinson Group in
Europe, which includes Citadel Trustees Ltd. One of her principal
objectives is to develop the Citadel brand, with a particular focus on
innovative investment projects such as fractional products and
Unregulated Collective Investment Schemes, which Wilkinson says
represent exciting and increasingly lucrative business opportunities.
Wilkinson says: “Despite the economic downturn, we have heard many
success stories in 2009 and I believe that we will experience a steady
and positive growth in 2010. Our developer clients are expanding their
activities into new and more innovative products, with a fast-growing interest in fractionals and
similar projects involving an element of investment, pooled-income or shared profits, and the
number of new enquiries is still on the increase. Yes, the year ahead is going to be challenging
but there is certainly very strong interest in the fractional property market across Europe and
much enthusiasm within the industry. The major element yet to be added is consumer finance
for the higher value fractions – once this has been addressed, there will be more success to
come.”