JUNE 2010 | www.opp.org.uk


Developer profi le Shared wins in Middle East By Stephen Harris


WEALTHY holiday-goers in the Middle East are more likely to choose shared ownership over other types of accommodation, says new research – but a lack of awareness is still the sector’s biggest barrier. A survey of the region’s high-income


nationals showed that 44% of respondents favoured fractional or timeshare property when given information about it. However, 28% said a lack of familiarity with the business model would be the main reason for not investing. The research carried out by shared


ownership consultancy NorthCourse included citizens of Egypt, Iran, Kuwait, Saudi Arabia and the UAE.


Rapid growth “Over the next fi ve years timeshare growth worldwide is expected to increase by 50% but will increase more in the Gulf area,” said the report. “Although the timeshare industry in


the Middle East and Africa region is in its infancy stage, it has phenomenal potential, particularly with its population of over 300 million and through the development of current mega projects which are under construction.” Different nationalities preferred different locations but Dubai was a


Success / Over 60% of shared ownership resorts in the Middle East are in Egypt


strong choice across the survey, with Iranian, Kuwait and UAE nationals citing the highest level of interest. Egyptians showed a preference for


staying locally in the Alexandria area as well as Sharm El Sheikh.


International potential These destinations also have the most international potential, according to Nick Turner, head of Europe for luxury exchange fi rm The Registry Collection and former managing director of RCI Middle East. “In my personal opinion, you have got to look at the basic fundamentals of


tourist fl ows,” Turner says. “There’s already a good consumer


base for fractional in Sharm El Sheikh, Dubai and possibly in Yas Island in Abu Dhabi. There could be interest in niche boutique projects in the rest of the region but these locations may have limited international appeal.” Around 62% of Middle East shared ownership resorts are in Egypt, followed by Dubai with 11%. Turner said Egypt was likely to


continue to overshadow Dubai because the emirate’s oversupply of distressed whole ownership stock made buying a fraction less of a value proposition.


Scots target corporate rewards


A UK golf developer is hoping that the relaunch of its fractional property will attract companies looking to reward their employees. Since revising its shared ownership


programme to offer shorter, cheaper fractions, De Vere has also seen a rise in international enquiries. Buyers can now purchase four and eight-week shares from under £50,000 at the Mansion House at the Carrick Golf Club in Scotland, as well as the original 12-week product. “By increasing the flexibility of our


offering we’ve created a fraction that is more sensible for some people but also opens up our target market,” said Sam Broster, national sales executive of DeVere.


“All our current owners own for


lifestyle reasons but we’re now trying to target the corporate market as well. Companies could use them to reward their employees or to entertain guests in the way many fi rms own boxes at football grounds or take their clients to the horseracing at Ascot.”


Overseas relaunch All current owners at the Mansion House are based in the UK, but since relaunching the fractional programme last month, Devere has received increased enquiries from prospective buyers in Canada and the US. “Scotland, even more than England, holds appeal for the international market,” said Broster.


“The US in particular appreciates the country’s history and culture as the home of golf.” He added: “Although we are not planning to launch any more fractional products we do see fractional as playing a large part of our business over the coming years.”


INDUSTRY Fractional news | 13


NEWS IN BRIEF K-Club’s celeb launch


FOOTBALL legend Kevin Keegan has joined an array of singers, entertainers and sport stars at the launch of a fractional developer’s latest golf properties in Ireland. Cricketer Ian Botham, Boyzone’s Ronan Keating and television personalities Ant and Dec were part of a celebrity golf match at Firstlight The K Club. The event was used to promote shared ownership at the development. The fractional model is being used to market property on the luxury golf estate to a wider target audience


Middle East conference MEDIA company Fractional Life is to hold its fi rst Middle Eastern conference in Abu Dhabi this November. The B2B Shared Ownership and Fractional Summit will follow the launch of Fractional Life’s fi rst US conference in August, but unlike the company’s other events will include a focus on timeshare. The conference will be held at the YAS Hotel in Abu Dhabi on 23- 24 November 2010 – a week after the venue hosts the Abu Dhabi Formula One race.


Fractional Life holds Interval’s profi ts creep up


HOLIDAY exchange fi rm Interval International has reported a tiny increase in revenue and gross profi t for the fi rst quarter of 2010. The company saw revenues rise 0.8% to $113.8 million on the same period last year, while gross profi ts increased by 0.6% to $79.7 million. “Through a variety of initiatives, we have continued to invest in our core business, provide value to developers and engage members,” said Craig M Nash, Interval’s chairman, president and CEO.


DeVere has reduced fraction sizes to four and eight week shares.


Citadel Trustees SPANISH resort developer Novaterra has appointed Citadel Trustees to manage the services for its shared ownership programme. Novaterra off ers six-week shares in its ten villas at luxury golf resort Arcos Gardens, located 20 minutes from Jerez de la Fronter in Andalucia.


Novaterra appoints


INDUSTRY


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