Sharing the burden of luxury

Posted On Wednesday, 01 June 2005 02:00 Published by
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South African property market investors seeking to share investments in high-end properties can now boost their portfolios with a new syndication initiative
 
By Nicola Jenvey

South African property market investors seeking to share investments in high-end properties can now boost their portfolios with a new syndication initiative.

This follows an international trend for investors to take fractional ownership of luxury assets, allowing them to spread the risk and responsibility of an investment, while retaining an appreciating asset.

The Stonebridge Private Residence Club concept, offering investors shares across seven of the country's top lifestyle developments, has been modelled and tested internationally and is currently very popular in the US and Europe.

Eric Simons, sales director of holding company Ocean Estates International, said last week that the concept revealed "a whole new lifestyle opportunity" for aspirant property owners. A R300,000 investment bought investors one share in a selected property unit, translating into a bricks and mortar purchase.

Each unit was divided into 13 shares, meaning each share bought the owner a flexible 28 days annually.

"It grants investors access to unique South African destinations unhindered by issues that traditionally surround second home ownership," he said.

However, Simons believed that the strongest drawcard was the attainability element, in that investors could now gain access to destinations previously out of their reach.

"It is an evolution in South African property ownership and the success overseas is a good indication of the investment shift," Simons said.

The destinations, chosen to encompass the country's diverse offerings, included Ocean Reef on the KwaZulu-Natal north coast, Cape Royale in Cape Town, Kruger Park Lodge and Misty Creek in Mpumalanga, Ocean Bay in Brenton-on-Sea, The Emperor in Sandton and Lagoon Bay in George.

Simons said that each of these opulent resorts aspired to a level of service excellence suitable for people with "discerning" tastes.

This meant home living with all the amenities and services of a luxury hotel, he said.

He said that the club offered investors an alternative when updating investment portfolios and characteristics like low entrance levels, minimal cost of ownership and limited membership allocation, and constituted "an attractive package" for high investment return.

Bridge Leisure Management will manage the Stonebridge Private Residence Club.

Business Day


Publisher: Business Day
Source: Inet Bridge

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