FEBRUARY 2010
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www.opp.org.uk Claude Attala, Northcourse Leisure Real Estate Solutions
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31
INDUSTR
Y
Capital investment
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Claude, like many other industry observers, believe London presents some of the best opportunities for city centre fractional ownership in the world
The global timeshare market is worth $7.8billion, middle-income households. These still doing enough to educate
dominated by the US, and there is a high satisfaction rate, allow for affordability which gives the consumers about fractional PEOPLE
but the timeshare industry needs to do more to promote its buyer the opportunity to still purchase and how should it address
positive elements, as does the fractional industry. a much higher quality real estate timeshare?
product than they ordinarily would. I believe in leisure real estate - which
business model and will continue to ownership? includes timeshare, fractional, PRCs,
focus on vacation ownership business. In 2009 the UNWTO predicted that Which international buyers destinations clubs, etc. The global
travel to destinations closer to home, are most likely to engage with timeshare market is worth $7.8billion,
Northcourse has conducted including domestic travel, is expected fractional, and why? dominated by the US, and there is a
the most comprehensive to be favoured against long-haul The United Kingdom accounts for high satisfaction rate, but the timeshare
and respected research into travel. In this current economic climate, the majority of European buyers for industry needs to do more to promote
DESTINA
fractional ownership demand buyers will look for purchases closer to fractional real estate. The USA market is its positive elements, as does the
in Europe, but data is based home. The European buyer is therefore also very familiar with the product and fractional industry.
mainly on affluent individuals. more likely to purchase property within hence likely to engage with it. I do personally feel that the major
Is fractional just a high end Europe that is mostly accessible by an players in the shared ownership
TION
product? average of four hours flying time. What do you think are the main industry have made enormous efforts
Our data has been fundamentally At the same time, like luxurious barriers to fractional sales? in educating consumers about the
based on affluent individuals in Europe holidays, fractional offerings located in Fractional product is more expensive various shared ownership models and
as we have seen a trend of more luxury exclusive real estate beyond the reach than timeshare and there are not there is a continuous need to educate
developments in Europe as a whole. of traditional homebuilders are most enough lenders or brokers offering both the consumer and developers. We
Despite this, there are typically two successful. These locations emphasize fractional mortgages. However, I think have created symposiums and speak
markets for fractional ownership. natural beauty, picturesque settings we’ll see more finance houses offering at conferences to educate developers
The first is the affluent market that and proximity to beaches, golf, fishing, it in 2010. and consumers, which takes time and
BUSINESS
can afford whole ownership of an skiing, nature trails, urban centres and investment, but we are seeing more
equivalent million pound home, but other amenities. There is a perception among understanding so we’re getting there.
finds it impractical because of the some developers and agents Portals such as Fractional Life are great
limited time they have to use the Do you think there are better that if their projects qualify for informative platforms and no doubt we
home and the angst generated from prospects for fractional sales exchange networks they are will see others emerging.
having capital tied up in a relatively at the top end or should most likely to sell. Is this really
underutilized asset. developers create more the case? If you had a million euros to
The second market is a less affluent options for the mid market? Location is a major factor for success spend on a property investment,
household that can’t afford whole Again, there are two markets. The in fractional sales, but exchange won’t what would it be and why?
ownership of a home with the square newer fractional product is an upscale guarantee success. Well structured and My core focus would be to capitalize on
DE
footage, quality, and location of the luxury home that often incorporates well supported fractional products are the current economic situation and VEL
homes proposed for the subject a private residential club (PRC) which more likely to sell and exchange is the invest in prime distressed assets in
OPER
property. But they can afford to buy a appeals to the affluent buyer. There icing on the cake. I certainly expect primary markets such as London or
fractional share in this home and the are, however, new mid priced fractional exchange business to grow globally. look at alternative asset classes such as
usage programme provides them with products being developed that are fractional real estate in key desirable
adequate time to enjoy and experience designed and priced to appeal to upper Is the shared ownership industry locations.
a second home that is far beyond their
expectations and the quality of what
they otherwise could afford.
Biog: Claude Attala, NorthCourse Advisory Services
Therefore, it is a high end product
Managing Director of NorthCourse Leisure Real Estate Solutions, a subsidiary of Wyndham Worldwide Corporation,
M
but there are obviously varying types of ARKE
Claude was formerly MD of Business Development in the Middle East and responsible for setting up partnerships with
fractional real estate in terms of prices,
real estate developers on mixed-use projects in the Middle East region. Prior to joining NorthCourse, Attala was Head
offering, location and amenities.
of Planning and Operations for the Qatar Tourism Authority, responsible for the development of a long-term strategic
TING
master plan for tourism as well as the classification system for hotels and tour operators. He also set up the business
Have you identified any
development team to assist potential investors and developers with tourism-related projects in Qatar. Claude is also a
international residential tourism
member of OPP’s International Executive Panel.
trends that support increased
demand or interest in fractional
FEB10_OPP_MAG.indd 31 28/01/2010 15:20
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