By Heather Formby

Sometimes, dreams can come true. Which is why a luxury holiday home concept has been named Dream Circle Destination Club.

"When we briefed the photographer about our promotional DVD," says MD Ian Beauchamp, "we asked him to shoot dream images, the key messages being things like heaven on earth and the essence of life."

Beauchamp is no novice to heavens on earth, having been involved in the luxury hospitality industry for most of his career. He worked mostly for Rattray Reserves and, more recently, the Inzalo Group of private game reserves.

He will use this experience, together with the expertise of property development company Mirage Leisure & Development, which has developed a range of luxury resorts here and abroad.

"The idea came mostly as a result of Dene Murphy's travels," says Mirage financial director Lindsay Clur. (Murphy is Mirage's MD; he acquired a skill for swearing from working for many years with Sol Kerzner.)

Mirage will own 60% of Dream Circle Destination Club; the remaining 40% will belong to financier Standard Bank Properties, which, in an innovative step, is combining property financing with a private equity-style role.

The club will buy a portfolio of 25 luxury holiday homes, each of which will cost between R10 million and R15 million. The homes will all be big, beautiful and in some of SA's most sought-after locations - along golf courses, at beach resorts, close to dams - as well as in Mauritius, the Seychelles and Kenya.

The initial launch price to members - limited to 168 - is R2,2 million, with a levy of R96 700/year charged to individual members. Corporations pay R188 100/year. This will increase by 6%/year. In exchange, members receive 32 and 45 days/year, respectively, which they can use at any time.

After 12 years the portfolio will be sold and members will receive a percentage of the profits.

"We studied 25 clubs in the US and came up with a concept we think is original," says Beauchamp.

"The idea is to provide members with top-quality destinations while removing the hassles attached to owning a second home. Members will also have the choice of a variety of destinations rather than being tied down to one place."

Dream Circle will maintain the homes, employ staff, do the bookings and even offer an exclusive concierge service, which will provide practically anything - including tickets for a rugby match or concert. "Members can ask us to book a jet, a helicopter or get us to organise a party for them when they arrive at the home," says Beauchamp.

Each member will complete a five-page list of favourite things which will be available on arrival, such as magazines, DVDs, food and wine - a far cry indeed from brown paper packets tied up with string. One or more housekeepers will accompany each property and an area manager will oversee each of the regions.

Every extra has been thought of, including boogie boards at beach destinations and golf clubs at golf resorts. All homes will be installed with state-of-the-art TVs and PVRs. In other words, no expense is spared in the quest for high standards and perfect service. But could the dream become a nightmare?

The problems that could arise from 168 demanding members all wanting top-class service seem to have been thought through. Something which may annoy members, for instance, is when fellow members want their dream destination at the same time.

One of the ways this has been tackled is to target a spread of members so not all of them will be parents with school-going children who need to go away during school holidays.

The targeted spread covers international members, as well as those like pensioners and corporates.

"Obviously, everyone won't be happy all of the time," Clur says. "But we will try to meet everyone's requirements as much as possible. By limiting membership and ensuring that only 65% of the annual available occupancy is allocated, members will have some flexibility."

Despite having a share of homes in some of the best destinations, members, cautions Clur, shouldn't think of the club as a financial investment but rather a lifestyle investment.

Members will receive 50% of the profits after all the properties have been sold. But this may just cover the initial outlay and the cost of levies.

Clur's calculations show that members will receive their capital and levies back after a 12-year period, assuming the property portfolio increases by 14,5%/year.

Obviously, this could vary, depending on the performance of the property market. But he calculates that the cost to members of 12 years of holidays in the club's top-class destinations would amount to R3 million, while the cost of renting similar accommodation over the same period would work out at R4,6 million.

The purchase of the properties will be done in phases. After the concept is launched at the end of the month, phase one of the development will be available for occupation from March next year.

There are contracts for ownership in various stages of completion for properties at golf estates Fancourt and Simola on the Garden Route and Prince's Grant in KwaZulu Natal; houses in Plettenberg Bay and St Francis Bay; and an apartment at the Cape Town Waterfront.

The estimated value of the initial properties is R103 million, out of a total R350 million available to invest. Thirty-five members are needed to make the project viable, though Standard Bank provides the initial finance until members make their contributions.

One of the highlights for members visiting Cape Town will be access to a very large toy - a Princess yacht, owned by the club, and which members can either book for a night or two, or for a day's sailing up the west coast or to Clifton. A perfect way to show off.

The yacht will be bought as phase two memberships are being sold and more properties have been bought in places like Plettenberg Bay, Zimbali, Pearl Valley (the golf estate near Paarl and Franschhoek in the Western Cape) and Prince's Grant.

Clur is optimistic about attracting the initial required 35 members. "We are offering the first 20 members a discounted amount of R2 million," he says.

"We've already got a number of people interested and, as well as in SA, will be doing some additional marketing in Dubai [where Mirage has an office] and other international destinations.

"But we expect many of our sales will be by word of mouth."

Which is how most people with discerning taste find out about the good things in life - by word of mouth or in their dreams.

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Financial Mail