Fractional Ownership News
A Life of Luxury
Private yachts and exotic holiday homes used to be the preserve of the super-rich, but it doesn’t have to be that way. This month’s Fractional Life Expo points in a very different direction, says Robert Cook
For those not in the know, fractional ownership is a hot trend in today’s luxury goods market. Essentially, it’s a smart way to access a variety of opulent items such as state-of-the-art private jets and prizewinning racehorses without paying a fortune for them. Fractional owners share possession of these products with other investors and use them only when they want to, with no need to worry about the full purchase cost, depreciation or upkeep. When it comes to a field such as property, fractional ownership often means co-owning shares in a single residence, but more complex systems apply to other types of product. For example, members of supercar clubs usually receive access to a whole range of top motors. An excellent place to learn more about the fractional ownership phenomenon is at this month’s Fractional Life Expo. “The first show of its kind in the world”, it is the brainchild of online asset-sharing portal fractionallife.com, which gives users the low-down on the fractional ownership industry and points them towards companies offering the opportunities they’re looking for. The Expo will translate Fractional Life’s self-proclaimed “fractional superstore” into physical reality.
Like last year, the Expo will take place at the Broadgate Arena and its surrounding events venues, where the full capacity of 27 stands will host a variety of companies offering luxury goods at a fraction of the cost of full ownership. This City location means the show is perfectly placed for local workers to visit, though it won’t just cater for those on MD salaries; the Expo promises to include opportunities and advice to suit consumers of every budget or level of experience on the fractional ladder. There’s not even an entry charge, and all visitors will receive a complimentary Expo Directory. Leading female entrepreneur Chelsey Baker is scheduled to be the Expo’s host, and a number of organisations have queued up to support it, in addition to the fractional companies exhibiting.
In search of more information, I asked Fractional Life founder Piers Brown about the show and the fractional ownership industry in general
What will be the highlights of the Fractional Life Expo 2008?
There’s a big fractional lifestyle focus to the show this year. The fractional lifestyle area is dedicated to golf, sponsored by Nevada Bob’s and TaylorMade, with a driving simulator and putting green for people to improve their swing and go for the ‘longest drive’ and ‘hole in one’ at the show to win daily prizes. TaylorMade golfing tour pros will be on hand to give expert tuition, including Simon Khan and Paul McGinley. There’s also over £1.8 million of supercars and boats on display and “Slice The Pie” will have ‘Scars on 45’, ‘Sarah Grace’ and ‘Miranda Barber’ music artists performing “live” every lunchtime, where traders will be able to help themselves to a piece of the music industry.
How does the Expo complement Fractional Life’s online work?
It allows the visitor and potential ‘fractional lifer’ to get much closer to the exhibitors at the show and to ‘feel and touch’ what they could be enjoying fractionally in the future (much more of an experience than looking at a website). Visitors can pick up the Expo guide and see the variety of choices available to them and meet the exhibitors and hopefully feel comfortable with what they have to offer.
What do you see as the most important features of the fractional ownership industry today?
What with ‘auction culture’, the credit crunch and overseas property values far from guaranteed, consumers are really questioning the value of 100% ownership of many luxury items these days. Luxury is perhaps becoming more experiential in that it’s not what you own, but what you do that ultimately makes you happy. Most people have a finite amount of money to spend and fractional ownership lowers the entry point and gives them access to items they wouldn’t otherwise have to enjoy. This is also a big time for the mixed use of fractional packages – i.e. fractional property developments having a selection of golf courses / boats / supercars for owners to be able to use.
who’s who at the show
According to Piers Brown, founder of Fractional Life, “A visit to the Expo will show there’s something for everybody – be it a fractional property / boat / supercar membership or a small ‘investment’ in a potential pop star or feature film. There’s also something for the ladies – fractional handbag club memberships!”
The exhibitors will be divided into ‘zones’ based on the type of goods they provide. These zones will be Property, Motoring, Sea, Air and the catch-all category of Lifestyle, which encompasses everything from fine wines to those unmissable handbags. So, which companies will be at the show? Here are some of the exhibitors confirmed so far: Oceanico Group is the title sponsor of the Expo. It specialises in luxury Portuguese properties with excellent access to golf, beach and leisure facilities. Foreign Property Ventures Ltd is the show’s gold sponsor. It focuses upon unique property investments across the globe, such as the Moditlo Eco Lodge in South Africa’s Greater Kruger National Park.
écurie25 provides access to a fleet of elite supercars. Its hot models from Ferrari, Audi and Lamborghini come straight out of every motor enthusiast’s wildest dreams. The Owners Club International offers a range of fractional ownership properties selected on the basis of stringent holiday home criteria. Its residences are located in Europe, the US and the United Arab Emirates. Boat Associates has the co-ownership of luxury motorboats as its slice of the market. These speedy vessels are a great way to explore idyllic remote islands in the Mediterranean.
