Fractional property ownership heads to Europe – International Herald Tribune – Amy Cortese – 10 August 08
…Long popular in the United States, fractional ownership – in which the costs of a vacation home or other asset are divided among a pool of members – is steadily making its way across the Atlantic. For prices starting at $100,000, not including annual dues, buyers can own a piece of a coveted property in the Tuscan hills, in the heart of Florence or in other European locales…Unlike two other cost-sharing models – timeshares and destination clubs – fractional ownership plans give members an equity stake in the property, which can be sold or transferred like wholly owned real estate. The members typically own the club and the real estate, while the developers make money from the initial sales…
The hottest segment of the market in Europe, as in the United States, is the so-called private residence club, a fancy term to designate high-end properties that come with luxury amenities and services. The clubs have limited membership and generous use policies, and because they are in premiere locations, they are often viewed as investments that can appreciate…While second-home market has dropped off, sales for private residence clubs grew by 12 percent in 2007, according to a study of the North American market released this year by Ragatz Associates…
When a $150 million renovation is completed later this year, Palazzo Tornabuoni will feature 36 residences – from studios to three-bedrooms – that will be available exclusively to 288 members from €218,000 to €549,000, or $328,000 to $825,000, for a one-eighth share. The Four Seasons will manage the property, and members may use the amenities of a nearby Four Seasons hotel set to open this fall…The Palazzo’s members will have access to Florentine hunting lodges, golf clubs and special wine tastings, thanks to the connections of one of its developers, Jacopo Mazzei, who is from one of a handful of Florentine noble families. His family is also one of the oldest Chianti producers…
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