This page contains a Flash digital edition of a book.
MAY 2012 |

vacation exchange programmes. The decision of this corporate giant to spend valuable time and resources spreading the word about opportunities in fractional development is signifi cant. The “big guys” have their hand on the pulse of the market, and they know where future profi tability lies. They want to get in early on the action by creating more supply of luxury properties to funnel in to their exchange programme. Surely, this outlook is bullish for the industry.

And what about the star-studded re-launch of Aspen PRC? The Dancing Bear private residence club in Aspen, Colorado was bought by US residential developer, Sunrise Company and funds managed by the investment fi rm Oaktree Capital Management L.P. The project had gone into bankruptcy in December 2010.

The new owners have appointed

Timbers Resorts (“TR”) to manage marketing and sales operations and to include Dancing Bear in exchanges with TR’s portfolio of properties. As far as I am concerned, as an observer of all this, the


companies named again include several “heavy hitters” with long track records of success in recreational property development, fi nance and marketing and sales.

The investment fi rm involved, for example, has an extensive background in leisure real estate where, over the years, it has represented private investors with “deep pockets.” These highly sophisticated buyers are

“The 2014 Winter Olympics in Sochi will be a game changer and Russian options will boom”

the “smart money.” They are saying that they are confi dent about the future of fractional, and they are putting their money where their mouth is. They are betting that today’s new market—or at least its top niche—can and will absorb additional supply.

Also, for the past year, I have been in discussions with a visionary Russian businessman who wants to plant the seeds of fractional ownership in Russia. Though the Russian economy has been improving, and many citizens

have the disposable income to own a leisure home, they have been buying properties overseas.

As a result, Russia is running substantial trade defi cits—about half of which can be attributed to leisure home investments overseas by its citizens. Part of the reason for the outfl ow of rubles is not only a shortage of residential housing, but a lack of salable leisure properties as well. Of course, the government would

prefer that its citizens purchase domestic, “home-grown” real estate. Then, the rubles now invested abroad could remain within the country, thus easing pressure on the monetary system. So … now, here comes a “game


As many know, the 2014 Winter Olympics will be held in Sochi, a Russian city on the Black Sea that is within thirty minutes of skiing in the Western Caucasus Mountains. A master plan calls ultimately for a ski resort at least equal to or perhaps even larger than in Vail, Colorado. Much-needed infrastructure and sports facilities are under construction as Russia prepares to “welcome the


world” and promote its new persona as a holiday mecca for residents abroad as well as its own citizens living at home. Interest in fractional ownership runs high among Russians as an ideal property ownership vehicle for holiday makers who will benefi t from the billions of dollars/rubles/yuan invested for the Olympics.

And I have been honoured with an invitation to speak this May in Russia to meetings of developers and entrepreneurs wishing to be among Russia’s fractional pioneers.

Some of the topics I have been asked to address include: How to develop a successful fractional offering and where to fi nd venture and institutional capital. I look forward to my trip and to

reporting back to OPP readers when I return.

In conclusion, for the past several years, the fractional industry has seen the glass as half empty. I believe now is the time to see the glass as half full. The turnaround of the industry is being marked in many places by efforts to increase the supply side. Business insiders are revving up to position themselves to profi t from satisfying growing amounts of pent-up demand for fractional property.

Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60  |  Page 61  |  Page 62  |  Page 63  |  Page 64  |  Page 65  |  Page 66  |  Page 67  |  Page 68