Date: December 5th 2009 - Publication:"FT" -  Title: "A Shared Destiny"  Author: Lucy Warwick-Ching

A shared destiny

By Lucy Warwick-Ching

Published: December 5 2009 00:10 | Last updated: December 5 2009 00:10

Wealthy homeowners armed with surplus cash and a desire for luxury holidays have poured millions of pounds The recession hasn’t stopped the wealthy ‘Generation X-ers’ from escaping to their holiday villas It is not something most people with a Chiantishire villa or a bunk in Mustique will appreciate hearing Wealthy homeowners armed with surplus cash and a desire for luxury holidays have poured millions of pounds into the shared ownership industry over the past decade. The property boom that gripped the world made it seem as though the good times would never end and a few hundred thousand pounds for membership and annual fees for a scheme seemed a small price for a “millionaire’s lifestyle”.

Individuals stopped buying second homes abroad and instead invested in a share of a million-dollar property. The attraction? The schemes, which came under various names including private residence clubs, destination clubs and fractional ownership agencies, offered individuals the chance to go to a different luxurious location for each vacation with none of the headaches of owning the properties.

The most tempting elements, and certainly the ones that hit the headlines, were the bespoke services that came with the properties. On arrival members would be greeted by a driver who would take them from the airport to their £1m home, where they would find a refrigerator stocked with their favourite foods and champagne on ice. To make the stay easier, golf tee times on a championship course would be reserved in advance and a masseur booked to tie in with arrival.

But with the economy in turmoil and the real estate boom a distant memory, several of these clubs have started to struggle and individual members, some of whom lost their jobs in the downturn, have had trouble getting out of their investments. The clubs often work on a “three in, one out” policy, so that as new membership has slowed the resignation waiting lists have become longer.

Some companies, including Solstice Collection and The Lusso Collection, have filed for bankruptcy in the past year, while others, for example Ultimate Resorts and Private Escapes, have merged. Companies such as Marriott, which runs the Ritz Carlton destination club, have simply put their expansion plans on hold while they wait to see how the market pans out.

Confidence in the industry has also been knocked by the recent troubles in Dubai, which has seen a fall in its residential property prices of 47 per cent, according to the latest Knight Frank Global House Price Index. But while the Royal Club Palm Jumeirah and IFA Hotels and Resorts both have properties in Dubai, lawyers say there are few other clubs with exposure in the emirate. Those that do have properties are likely to own the land and buildings outright so problems will only arise if they need to sell these assets.

The total worth of the shared ownership industry reached $2.3bn in 2007 at the peak of the property boom, according to the Sherpa report, an online publication focusing on the industry, but as the market has grown shaky this has fallen about $1bn.

“Several destination clubs have filed for bankruptcy because their models didn’t work in this economy, others have been going out to their members and asking for more money to keep them going, and nearly all the others have had to adjust to slower growth,” says Nick Copley, president of Sherpa. “In addition, resignation rates have increased significantly at the clubs and there are many more fractional clubs for sale on the open market.”

But although salesmen admit that in the past year the market has slowed because of a lack of funding for new portfolio properties, the schemes have not crashed nearly as hard as the rest of the property market.

But experts also point out that dark clouds hang over the industry. “Although the original idea of the destination club remains an attractive concept, companies will need to adapt in order to survive and grow,” says Piers Brown, founder of Fractional Life, a consumer brand dedicated to expanding the industry. “They will need to prove their business models to prospective customers who have been burnt by the bankruptcies of clubs that have recently failed. The schemes that will survive are those that have adapted their business models to suit potential buyers.”

Typically these clubs have charged an initial deposit, refundable or partly refundable if the member decides to leave, annual dues and sometimes nightly rates.

They have also tended to offer very similar benefits: access to an array of private homes with gourmet kitchens, lavish grounds and gracious hosts who manage everything from roof repairs to restaurant reservations. The clubs that have sprung up during the past couple of years have been structured in ways that protect participants and profitability.

“The companies that seem to be weathering the economic storm best are those that offer the buyer some equity,” says Brown. “Buyers, particularly in the UK, are wary of putting their money into something that is not transparent and does not offer a clear picture of what their money is being spent on.”

A relatively new concept comes from Rocksure, which is essentially an equity destination club split into property funds. Each fund will have a life of about eight years, after which it will be sold and shared between the members. “We don’t have mortgages or borrowing; people buy shares in a holding company,” says David Rogers, founding director of the fund. “The properties are 100 per cent owned by the shareholders. There is no one between my cheque book and the bricks and mortar that can go bust.”

Alexander Hughes, a 50-year-old who works in finance in south-east England, says he preferred this business model to that of a traditional destination club. “I can’t see too many things that could go wrong. It’s not as if someone could take my money and then go bust. The house has been bought – the only risk is a collapse in the property market and perhaps a currency risk.”

Destination club launches

Rocksure
The new Capital fund from Rocksure will buy 10 homes outright in 10 different cities that members can then use for a number of weeks a year, depending on how much is invested. The fund is made up of 170 units, each worth €115,000. Investors can put in anything from €55,000. The properties will be sold after 10 years, when the profits will be split between the members. The management company will take a slice of the rise in property values above a 20 per cent barrier plus an annual management charge. For €115,000 you get a share in the portfolio and an average usage of two weeks a year .
www.rocksureproperty.com

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Date: November 15th 2009 - Publication:"Spear's" -  Title: "Rock, Paper, Villas"  Author: The Hedgehog

ROCK, PAPER, VILLAS

It is not something most people with a Chiantishire villa or a bunk in Mustique will appreciate hearing, but ‘owning a second home abroad is a mad, mad thing to do - unless you are supremely rich (and even then it’s slightly mad).’ So says David Rogers, founder of Rocksure property funds.

His logic runs as follows: you could invest in a Rocksure property fund, or you could ‘take £1 million and place it in a field in Tuscany (where it is cold and wet for five months each year), commit time to finding, buying and renovating it, then to managing, maintaining and staffing it each year, with an annual cost of up to £50,000.  And you’re obliged to return several times each year to the same place in order to get a benefit!

When you put it like that… There are two Rocksure funds open at the moment.  A full unit in the Bravo fund at £189,000 allows you to share ownership in up to six four- or five-bedroom fully-staffed houses around the world (Marrakech, the Algarve, Croatia, the Rocky Mountains, Thailand), enjoying an average of four rent-free weeks each year at your choice of the properties.  Capital (about to reach its initial closing) is much more for the urbanite: a full unit at €115,000 allows you to share in luxurious apartments and town-houses in European destinations like Paris, Cannes, Florence and Prague.

David has found that Rocksure has attracted a sophisticated class of inves­tors:  ‘The 60-70 people who have invested over £10 million in Rocksure funds since 2006 are senior professionals, average age about 45-50, who are successful, like the idea of hassle-free luxury home ownership, free holidays in exotic places and earning capital gain (hopefully) as they swim.’  This is not David’s first toe in international waters - he was COO responsible for all of Abercrombie & Kent’s overseas offices - while his Rocksure co-founder Desmond Patrick-Smith was MD of Aber­crombie & Kent Europe.

Rocksure still holds to the idea that there is no investment like bricks and mortar (especially in a sunny clime) - it just thinks that owning a holiday home needn’t involve traipsing round Provence in search of For Sale signs.

David is offering Spear’s readers a €10,000 discount on a premium share in the Capital Fund.  You can contact him on +44 1993 823809 or at drogers@rocksureproperty.com.

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Date: October 15th 2009 - Publication:"Square Mile" -  Title: "You do the math..."  Author: Bernadette Costello

THE WORLD WEALTH Report has identified ‘Generation X’ as the ideal buyer-type for fractional ownership property. Thirty to 50-year-olds earning £150,000-plus, it says, are tempted by new product innovation, luxury goods and services, while overseas holiday pads reflect their sumptuous lifestyles. Nothing new in that, but with unemployment at its highest since 1997 and UK bonuses down by a reported £7bn this year, Generation X-ers are watching their pennies and wondering. ‘what’s the point of a whole one?’

A survey of wealthy consumers by The Fractional Life Trends Report found that consumers aren’t cutting down on holidays, yet 38 per cent would prefer to stay in a residence they owned a share of rather than a rented apartment or hotel. With an eye on next year’s tax hikes, more high earners are sharing costs and getting rental income with co-investors.

“The recession has highlighted the reasons high earners buy a second property and if they’re only using it six weeks a year they’re better off paying €75,000 rather than €600,000 for it,” says The Fractional Group’s Richard Diaz.

As interest grows rapidly, industry insiders are now calling for tighter regulation to protect this thriving corner of the property market from a swathe of unsold developments passing themselves off as fractional ownership, but offering neither five-star nor a share in title deeds. “Such deals will not only not work, they will have a negative effect on the industry,” says Graeme Grant, co-founder of Fractional World. ‘Fractional properties should be the very best in terms of location, design and exclusivity if they are to be sold successfully.”

The 90 or so genuine products on the market – identified by Fractional Life to be true and transparent – include those from the Fractional Group, Rocksure Property Funds, Timbers Resorts and Fractional World, which all guarantee luxury, and that you will own your share of the property and the title deeds.

Fractional investments, which offer deeded interests, are also found in Private Residence Clubs and give you flexibilty to holiday in a selection of properties around the world.

The Fractional Trends Report found that prime locations in Italy, France, Portugal, the UK and Spain are most popular for fractional holiday homebuyers. Consumers are also taking an interest in fractional ski chalets and city apartments.

When you invest in a property fund at Rocksure you are effectively buying shares in a company based in the Cayman Islands that acquires properties in several international locations. The funds are regulated by the Financial Services Authority and audited by Grant Thornton.

Investors get four rent-free weeks a year and when the properties aren’t in use Rocksure rents them out - this extra income brings down annual maintenance fees to around £1,800.

The first fund, Alpha, purchased six properties on behalf of its 38 investors. The life of Rocksure’s second fund, Bravo, is seven years, after which Rocksure sells the lot and divides the profit with you. The Bravo Fund is currently purchasing six properties in Colorado, Thailand, Morocco, Portugal, Croatia and Brazil.

The Capital Fund will invest in ten prime city residences, buying when prices are “close to the bottom of the market”. As an incentive, the first 20 shareholders will receive a discount on their full unit ownership.

David Rogers is co-founder of Rocksure but spent several years running travel clubs at Abercrombie & Kent. He says: “I saw the US destination club concept and it gave me the idea for shareholders to own the property. We buy well and we ask ourselves, ‘What is going to give high net worth investors both a good time and a good return?”'

Prices: £94,000 - £189,000 per half or full unit ownership

Contact: 01993 823 809

Rocksureproperty.com

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Date: July 31st 2009 - Publication:"Money-Observer" -  Title: "The Capital Fund"  Author:

The Capital Fund

If you’d rather do boulevards and boutiques than black runs or beaches, the Rocksure Capital fund might be an interesting alternative.  The fund will run for 10 years from final closing, and will invest in a portfolio of 1,500 sq ft, two-bedroom, two-bathroom apartments with daily maid service, each averaging 1-2million Euros in smart enclaves (think Knightsbridge) across 10 European capital cities including London, Prague, Barcelona and Venice.

A full share, costing €115,000 (£97,500), entitles you to an average 14 nights a year, which can be taken as full weeks, three-night weekends or four-night midweek stays. But by using your allowance at quieter time of the year and not always going to the most popular cities, you could extend that to 28 nights.

There’s an annual maintenance charge of €2,100 per full unit, and on top of that an irritating visit fee of €200 per visit.  Nonetheless, this fund could be a good option if you’re a keen short breaker.  Moreover, the Capital fund’s value is likely to prove relatively resilient to price downturns and easier to monitor accurately than a collection of one-off villas.

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Date: July 31st 2009 - Publication:"Money-Observer" -  Title: "A House for All Seasons"  Author: Faith Glasgow

Fancy holidaying in a desirable location, with the potential for capital gains? Faith Glasgow visits a creation idyll to see how a fractional scheme works

Istria is a great place for insect life. A crowd of butterflies, bees and mysterious black and red bugs duck and weave around the lavender patch on the far side of the pool of the Villa San Giovanni and large grasshoppers bounce sociably around the broad limestone terrace. But there’s room for everyone around the pool and luckily they don’t seem to be inclined to venture inside.

The expansive house, featuring five spacious en suite bedrooms and an enormous living space – all height and light – was built as a school in the 1930s, on a spur of land that catches the cooling breeze in both directions, with expansive views across the valleys and down to the Adriatic. Just a year ago it was lying derelict and unloved , but Desmond Patrick-Smith, founding director of a small UK firm called Rocksure Property, stumbled across it and snapped it up as the latest acquisition of the Rocksure Bravo Property Fund.

Rocksure’s property funds – Bravo is the second launched, following the success of the Alpha in 2006 – grew out of the criticism of Patrick-Smith and his co-director David Rogers of so called destination clubs. These lifestyle leisure clubs, popular in the US, charge wealthy individuals a one-off club membership of up to $500,000 (£303,204), plus annual dues of up to $30,000, for several weeks’ access each year to a range of luxurious, fully serviced holiday properties in desirable locations. When investors leave the club, in most cases they get 80 to 100 per cent of their initial subscription back. But destination clubs are all about exclusivity, lifestyle, enjoyment; in most clubs, members have no stake in the value of the bricks and the mortar in which they stay. It’s the club itself that benefits from the rising property prices. ‘We decided to turn the destination club idea on its head’ explains Rogers. ‘There will be 40 shareholders in the Bravo fund, who will hold shares in a Cayman Island fund that exists solely to own the six house we buy’. Thus, if in due course the properties gain value, the shareholders will be the key benefactors. Rogers is at pains to emphasis that there are no promises of specific returns – and that the 20-plus shareholders who have so far signed up are not concerning themselves on that front.

Fun before funds

‘They want to have fun above all. They also want their money back and they’d like some profit, but they are not asking about how much capital gain they can expect’, he says.
So far, Bravo shareholders have use of their million-pound houses in the Algarve, Breckenridge in Colorado, and Croatia’s Istrian peninsula. Still to come, as the fund grows (no borrowing involved), are properties in Phuket in Thailand, Brazil and Morocco.

Why these destinations? ‘We were looking for long seasons, ideally 10 months. That’s difficult in Europe, but we have the Algarve, where the microclimate means that you can play golf in your shirtsleeves from March to December,’ says Rogers. Breckenridge in the Rockies offers great skiing and high-altitude summer, while Brazil, Thailand and Morocco all have almost year-round sunshine and a good dollop of the exotic.

As far as investment prospects are concerned, the aim has been to strike a balance between desirability, capital preservation and capital uplift potential. ‘Of course we want capital appreciation, but there’s no point buying in downtown San Paolo just because the best returns are to be made there’ Rogers explains. ‘But by buying into six homes around the world, rather than a single holiday villa, investors spread risk and increase their chance of gains.’

From a holiday perspective, there’s no need to worry about maintenance and when you visit the properties there’s no dash to the supermarket or the kitchen: on arrival it’s all done for you, as the local housekeeper/cook and manager are part of the package. They’ll shop and cook, keep the place tidy and do away with the elements of holiday drudgery that gener­ally hang over at least one member of any self-catering villa party.

The nitty-gritty

So far, so good. What about the nitty-gritty: costs, exit options, risks? One share in the Bravo fund costs £189,000, for which you’re entitled to an average four weeks a year, a half-share costs £94,500 and is worth an average of two weeks. (If you opt for quieter periods you could spend longer than four weeks in the properties)

On top of your investment, there is an annual service charge of £1,800 per full share, which goes towards the properties’ maintenance and running costs. To help cover those costs while keeping investors’ annual charges down, Rocksure rents out the properties for a few weeks a year on a commercial basis.

However, renting involves potential clash with shareholders’ interests, agrees Rogers.  ‘Shareholders get the first chance to book up their weeks, but if we get a rental booking for a free week in the high season, we’ll take it. These places rent at an average £3,000 a week, so it can make a. big difference to covering running costs.’

He points out that the Hideaways Club, the only other UK-based venture of this sort, does not rent out its properties but charges members between £7,000 arid £14,000 a year on top of the initial outlay (which ranges from around £120,000 to no more than £220,000).

For exit strategies, the Rocksure model has a fixed life of seven years from the final closing, when all the shares have been sold and all the properties purchased (although earlier joiners can use what’s available before that time). When the fund life expires, the properties will be sold and any profits distributed among shareholders, although. Rocksure takes a 17.5 per cent cut of any growth above the first 20 per cent increase.

That’s a benefit in that there is a defined point after which investors will be able to access their money. But it could mean that returns are limited by the state of the market. The directors have two years’ leeway if they deem it prudent to wait before putting the properties on the market. But in conditions like those that have been troubling markets across much of Europe over the past two years, that could be little consolation.

Nor are there any guarantees on capital. The geographical spread of the properties makes it pretty unlikely that all six local markets will be equally depressed at the same time but, again, you could, conceivably, lose money over seven years.

Ultimately, Rocksure is selling pre-packaged luxury. It will be a less personalised, less flexible experience than going to your own holiday home, while, financially, Rocksure’ fees will eat away at any final capital gains that may be realized.

But you’ll get a high standard of holiday accommodation and service without the hassle involved in second home ownership or the gut-churning high season prices of luxury villas. If the Istrian experience is anything to go by, it seems a good compromise.

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Date: July 9th 2009 - Publication:"The Scotsman" -  Title: "Why settle for one holiday home when you can have six?"  Author: Laura Henderson

Why settle for one holiday home when you can have six? Laura Henderson samples a new style of shared ownership for money-wise, time-poor investors

The Romans considered the Croat­ian peninsula of Istria on the Adri­atic a perfect place to put down roots, a favourite evening ritual prepar­ing the terracotta pitchers of “Supa” a heady concoction of wine, olive oil, sugar and pepper to toast the setting sun. Today the area’s wine trails, olive oil farms and white truffle lairs are pushing  the epicurean delights of this scenic north western part of the country to a new international clientele; a selling  point that hasn’t passed travel industry expert David Rogers by.

Founding director of Oxfordshire­ based real estate firm Rocksure Property, Rogers has a keen eye for top-notch investment locations. Former Chief Op­erating Officer for luxury travel com­pany Abercrombie and Kent, he also knows the ‘food for the soul’ benefits a wanderlust spirit can bring.

 It’s this hybrid mind-set that has spawned the latest Rocksure property fund, an innovative home ownership concept that allows investors access to multiple homes abroad and by doing so, spreads the investment risk and increas­es the financial rewards. A second home should add value to your life,” stresses Rogers. “Financing, renovating and maintaining a single property however, can invariably end up being more ball and chain than sundowners by the pool, plus there’s invariably a guilt-laden obligation to go there every year to get your money’s worth.” There will always be buyers who love the ‘same time, same place, next year’ set-up, of building a lifetime of holiday memories with friends and family. For others however, the opportunity to sample a selection of exotic locations from a luxury base without the large capital outlay and long-distance hassles is the perfect alternative.”

 The Rocksure concept is a simple one. A limited number of investors buy a share of a company, which purchases and owns a portfolio fund of luxury properties (each with an average value of £1m) in glamorous destinations around the globe. Homes offer four-season sunshine with access to top class skiing, sightseeing and golf. In return, investors enjoy a guaranteed return against future inflation from annual rent free holidays for the life of the fund. At the end of this period, the properties are sold and shareholders receive a percentage of the capital appreciation. They can then either bank their profits or if they so choose, invest their capital into another fund.

“The Destination Club craze kick started the multiple holiday-homes idea stateside,” adds Rogers. “Having spent time out there however, I was amazed to discover that members didn’t in fact own any of the properties — they were owned by the directors of the companies, so in effect investors were just paying for holiday time without bene­fiting from a deeded share nor any subsequent capital appreciation.

It’s this point of difference that sets the Rocksure model apart. The Fund’s first duty is to buy really well with a view to a capital gain at the end of its life; but a close second is to choose locations and houses in which shareholders can enjoy themselves with family and friends without having to lift a finger while they’re there except perhaps to discuss menu options with the housekeeper. Each investment is conducted on a cash only basis - buyers pay in cash and properties are also purchased for cash, which side-steps the need for expensive gearing and mortgage bureaucracy. Buyers also avoid the hassle of dealing with the legal aspects of purchasing abroad. Rocksure handles all this on behalf of the owners.”

Despite yo-yo exchange rates and a continuing climate of uncertainty, investor interest has been forthcoming. The company’s first investment fund “Alpha” closed in July 2007, boasting more than £5.7m from 36 investors. Now the company has launched its suc­cessor-the Bravo Fund. Divided into 40 full shares, for a cash lump sum of £189,000 investors can access six £1m properties in six prime holiday destina­tions across the globe. So, over a seven-year period, shareholders get four rent-free weeks per annum (split into two high-season and two mid-season combinations). Half shares, which offer two rent-free weeks per annum, are also available for £94,500. Annual mainte­nance fees are set at £1,800 per full unit with no other hidden extras. Properties come with a full-time housekeeper, cook and a dedicated concierge service to handle shareholder holiday needs from coordinating travel arrangements to sorting out tee times, ski hire and tennis lessons.

To date, the Bravo fund has received £3m of subscriptions enabling the fund to acquire three designer homes in Portugal’s Algarve, Breckenridge in Colorado and Istria in Croatia. The purchase of a further three properties in Marrakech, Phuket in Thailand and Buzios in Brazil is scheduled for the coming 18 months once the target number of 40 investors has been met. “The destinations have been chosen carefully to give a spread of long and short-haul and solid medium-term capital growth opportunities,” adds Rogers. “While the life of the Fund is seven years, this period only kicks in following the completion and pur­chase of all six properties. This means that those buying early in the game can take advantage of a ‘bonus period’ before the full complement of villas has been acquired.”

All homes have a minimum of four bedrooms and come with private pools. Villa Casa Alto do Cerro, near the historic town of Loule in the Algarve, can comfortably accommodate ten adults. Boasting spectacular views over the surrounding countryside, the property sports a games-room, cinema and covered outdoor dining area and is within easy reach of several of the region’s top golf courses including Vilamoura and Quinta de Lago. Just 15 minutes from the scenic coastal resort of Novigrad in Istria, famous for its medieval architecture and marina, the fund’s Croatian property, Villa San Giovanni, has been sympathetically converted from a former school into a five-bedroom, five-bathroom Palladi­an style country house with vineyard and sea views.

Annual allocations of weeks for each property are worked out by the company a year in advance and based on a rotational and priority booking basis. “With so few shareholders and long seasons in each of the locations, we’ve yet to have a bookings clash” comments Rogers. “The advantage of having several properties from which to choose is the scope to mix and match your holiday options throughout the year”

Adds Alpha fund investor Andrew Heywood, 52, from London “Friends of mine with places abroad are starting to question the viability of keeping them, particularly in the current eco­nomic climate. Acquiring an equity stake in a portfolio of properties by contrast, doesn’t tie me down to a fixed long-term purchase, plus the guaran­teed minimum service levels and product quality takes the guesswork out of buying abroad. Best of all we’ve a housekeeper and a chef to look after us — that’s what I call a real holiday.”

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Date: April 27th 2009 - Publication:"A Place in the Sun -Show Issue" -  Title: "Come Together"  Author: Alison Warner

Selling the properties after seven years and spreading the risk are added bonuses!

Alexander Hughes, who works in project finance, was interested in having a second home abroad but daunted by the hassle involved both in buying and managing it.

Instead, as an investor in Rocksure’s Alpha Fund, he has different countries to choose from and doesn’t always have to go back to the same place.

Other plus points were the competitive management fee and the exit strategy of selling the properties after seven years: “Seven is a number I can understand; five is perhaps too short and ten longer term,” he says.  He is also impressed by the managers’ investment strategy: “By spreading the portfolio internationally they have reduced the currency risk and have bought, it seems to me, at pretty good prices in the right locations. The rest is in the lap of the gods.”

He has stayed in the house in Buzios in Brazil, which is a couple of minutes’ walk away from what he considers the best beach in the area (out of 22). “It was absolutely delightful and exceeded all expectations.”

Alexander has also stayed in the house in Portugal (pictured left), which overlooks the whole Algarve coastline: “It was breathtaking; you could spend your whole holiday just looking at the view from the swimming pool, which is on top of a hill.” Guests in both houses are well looked after by a cook and a very helpful housekeeper.

He has also stayed in the house in Marrakech several times: “It’s absolutely fabulous — I simply adore it,” he says. Of the other properties, he will be trying the house in Phuket in Thailand at Christmas this year.

 Nervous about investing your hard-earned savings on a property abroad or don’t have the cash to buy alone? Pooling your resources with others in a collective investment scheme can help you buy the property you want for less outlay, exposure and hassle. From holiday clubs, property funds, fractional ownership and REITs, we look at the options

ALISON WARNER

COME TOGETHER

For anyone attracted by the possibility of investing in overseas property but frightened by the potentially large sums of money and hassle involved, a collective investment scheme may be the answer.

There is now an array of schemes and products on offer to suit a range of budgets and objectives. For people wishing to buy a home abroad but lacking the time or resources to go it alone, the options range from small informal arrangements with friends to membership of holiday schemes that offer a variety of properties or resorts in different locations around the world.

Alternatively, those looking to invest to achieve an income stream or capital growth could opt for a property fund. As well as publicly listed property funds, the options range from investment clubs or syndicate arrangements, where the investors make all the investment decisions collectively themselves, to private funds run on behalf of investors by an operator or a fund manager.

At the smaller end of the spectrum, less formal schemes can be highly effective. John Howell, senior partner of the International Law Partnership, is a huge fan of simple and straightforward arrangements between a few friends who decide to buy a house together. This can be a sensible and attractive option in today’s uncertain economic climate.

“Small is beautiful - provided that you know the right people,” he says.

Holiday residence clubs
An option for people who would prefer to have access to a number of holiday homes in a variety of locations around the world is the holiday residence club.  Among the first of their kind in the UK, Rocksure Property and The Hideaways Club were inspired by destination clubs in the US, which offer luxury timeshares without the potential advantage of shared ownership.

David Rogers of Rocksure explains that he and his co-founder wanted to turn the destination club concept on its head, with investors owning shares in a holding company that in turn would own properties around the world.

Rocksure closed its first such fund, the Alpha Fund, in July 2007, and is taking subscriptions for its second, the Bravo Fund, which will own six luxury properties of an average value of around £ 1 million each in the Rockies, Morocco, Thailand, the Algarve, Brazil and northern Croatia -all chosen for their investment potential and sunshine.

One of the 40 units in the Bravo Fund costs £189,000, (a half-unit costs

£94,500), with an annual maintenance fee of £1,800 per full unit. In February, Rocksure also launched the Capital Fund, which aims to invest in properties in ten European cities.  The Hideaways Club is more ambitious, aiming to have 600 members and 100 properties within the next five years, explains Stephen Wise, one of its founders. Hideaways currently has close to 100 members and 13 luxury properties in western Europe and the Mediterranean, three more under development in Croatia, Borneo and Mauritius, and plans to expand in South-East Asia.

A full share in the scheme costs £220,000 (subject to review), with an annual maintenance charge of £12,000. In return, a full member receives ‘points’ equivalent to four weeks’ stay in peak season. Two other entry levels are also available.

Both Rocksure and Hideaways provide a concierge service and housekeepers at each property to look after guests.

One of the major draws of these schemes is that they offer access to properties in locations that might be too expensive or adventurous to buy in on your own. The downside, however, is their complex structure:  “If it all goes wrong unravelling it is going to be more complicated,” comments John Howell. In terms of exit strategies, Stephen Wise admits that the resale market for this type of scheme is unproven. Hideaways’ investors have to retain their share for three years after joining but can then sell it to anyone who meets the admission criteria and can take their place in the Club. Alternatively, shares can be sold on but various conditions apply.

In contrast, Rocksure’s funds each have a finite life of seven years, at the end of which the houses will be sold. The proceeds will be divided up between the shareholders, with the two founding business partners taking 17.5 per cent of any capital gain above a hurdle of the first 20 per cent increase.

Hideaways’ business partners, however, don’t ever want to sell its properties, and the bulk of their reward will come from taking a 20 per cent slice of gains on share resales.  Rocksure’s and Hideaways’ funds are registered offshore, in the Cayman Islands and Gibraltar respectively, which eliminates corporation tax, but also means their customers are not covered by the Financial Services Authority (FSA)’s complaints and compensation arrangements. Under financial services rules, Rocksure’s and Hideaways’ funds are only open to high-net-worth individuals or self-certified sophisticated investors.

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Date: March 10th 2009 - Publication:"Country Life International" -  Title: "Tired of Hotels...?"  Author:

Tired of hotels?  Own part of an apartment in Venice instead.

Get the keys to Glamorous European pieds-á-terres

The concept of destination clubs, in which investors are shareholders in a portfolio of holiday homes scattered around the is not new.  They’re time shares for grown-ups: a concept that that differs in that investors pay higher entry fees, but their investment is in the bricks and mortar. 
Last month, Rocksure launched a new club focusing entirely on properties in Europe’s 10 most glamorous cities.

 The Capital Fund., Rocksure’s third iteration, is ‘taking advan­tage of current economic con­ditions and meeting investors needs,’,  says Rocksure’s director David Rogers,  formerly of Abercrombie & Kent.

Out go the glitzy villas in far-flung countries, and in are 10 two bedroom , two bathroom apart­ments in cities ranging from Paris to Prague via Barcelona.

The apartments will cost bet­ween €1 million and €2 million each, and will be located in the ’Kensington equivalents’ of the cities.  A Half Unit (allowing for two short breaks a year) is €57,500 (01993 0823809; www.rocksure property.com

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Date: March 6th 2009 - Publication:"Tatler, H&G, Vogue, GQ" -  Title: "City Breaks"  Author: Claire Pilton

Claire Pilton sets off in search of some spring sunshine and finds properties for golfers, wine buffs and beach bums alike.

If you’ve reached the age and stage in life where you want to have fun arid enjoy the benefits of a luxury lifestyle dividend in exchange for a relatively small real-estate investment, contact David Rogers at Rocksure (01993 823809) or visit www.rocksureproperty.com. Barcelona and Marbella are two of the 10 European cities where investors in Rocksure’s newly launched Capital Fund will have shared equity in, and enjoyment of 10 centrally located apartments and townhouses.

As with Rocksure’s two successful villa funds (Alpha and Bravo), investors will enjoy rent-free stays at any of the fund’s properties in any season, and will be reimbursed a percentage of the capital appreciation gained over the 10-year life of the fund.  For an investment of £100,000 a ‘full unit’ share provides an average 14 rent free nights (three-, four- or seven-night combinations) each year, with £50,000 ‘half units’ guaranteeing seven rent-free nights or two short breaks a year; annual maintenance charges (which include daily maid and use off Rocksure’s concierge service) work out at £1,800 and £900 respectively.  Early birds will receive discounts of some £8,500 for the first 20 full shares and £4,200 for the second 20; they can also enjoy use of the fund’s first properties as a ‘bonus’ between the period of its initial closing date (when the first £2 million has been subscribed) and its acquisition of the portfolio in its entirety.  The properties, which will average at least 140sq m with two bedrooms and two bathrooms, will be purchased during 2009 and 2010 - at a time when the market is at one a of its lowest ebbs. Although subsequent growth and future exchange rates cannot be predicted (an educated guess suggests you could double your money in ten years), the rent-free nights equate to a guaranteed ‘dividend’ every year of some 6 per cent. For those who would hedge their bets over 16 properties in 12 countries, a combined investment of less than £200,000 will give an average four weeks’ rent-free accommo­dation at the Capital Fund destinations and the Bravo Fund’s six houses in the Algarve (pictured - above), Buzios, Croatia, Marrakesh, Phuket and the Rocky Mountains.

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Date: March 4th 2009 - Publication:"Daily Mail" -  Title: "Part owning your holiday home..."  Author: Xanthe Whittaker

Part-owning your holiday home will spread the risks and save money, says XANTHE WHITTAKER

 THE one thing we learnt from Sex And The City: The Movie is that, even on the most modest salary, you can clutch the latest Louis Vuitton handbag.

And this isn’t about buying fakes on eBay - everything from private yachts to exotic pets are becoming available to own on a part-time basis. Or, through ‘fractional ownership’, as the marketing people like to call it.

When it comes to property, we’ve all heard of timeshare and its association with sleazy sales reps and cramped quarters in third-rate resorts. So is fractional ownership of property the rebranding of a tired and discredited old game?

Stuart Masson, director of Premier Fractional Ownership, consults with developers who want to offer properties under fractional schemes.

‘If you ask anyone what they did not like about timeshare, it was the fact that they didn’t get anything back after ten or so years,’ he says.

‘The key element of fractional is that the property is actually bought and the buyers each hold a share in that company.’

Or, in other fractional ownership models, buyers are written on to the property deed. There are several types of part-ownership schemes that brand themselves as fractional ownership. 

With most fractional ownership schemes, you are buying an annual, time-based share in a property, as well as a share in its value or in the company that holds the property

So you have the potential to make returns on your investment - or lose, if the property depreciates in value.

But there are also high-end Destination Clubs that sell non-equity shares, where you are paying for the use of an exclusive hotel or apartment over a set period, with out the possibility of making any return on your investment.  These are, in essence, posh timeshares.

Rocksure, however, provides equity shares.  Two years ago, Andrew Heywood, 52, who works in finance, bought into Rocksure’s fractional ownership scheme, A House for All Seasons.

For £159,000, plus an annual maintenance fee, he can spend four weeks a year in any of six four and five-bedroom homes in the Rockies, Brazil, the Algarve, Marrakech, Croatia and Thailand.  After seven years, the properties will be sold and the proceeds distributed among shareholders.

For Mr Heywood, the investment gave him the chance to buy into a lifestyle he couldn’t otherwise afford.

Fractionallife.com is a website dedicated to all things fractional.  It offers advice and links to companies selling fractional shares in everything from art to luxury condos and prestige cars.

Piers Brown, founder of the site, believes that rising interest in fractional ownership reflects a sea-change in buyers’ attitudes towards ownership in general.

Its clear people are becoming more intuitive towards their luxury spending and questioning the value of complete ownership, he says

There is growing tendency to invest more in entertainment, experiences, discovery and life.  It’s not what you have, but what you so that makes you happy

Fractional ownership may offer buyers access to a world usually beyond their means, it also gives property investors the opportunity to spread their investment - and risk - across a number of fractions.

So whether you want an A-list lifestyle on a shoestring budget or an overseas property investment without the blood, sweat and tears, fractional ownership may be for you.

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Date: March 4th 2009 - Publication:"Hedge Fund Magazine" -  Title: "A Capital Idea"  Author: Edward Vaughan

ROCKSURE’S NEW FUND OFFERS THE PICK OF EUROPE

IT’S BLUE MONDAY, THE DATE calculated to be the most miserable of the year. The weather is ghastly, and the papers are full of the latest banking disasters.  Yet David Rogers couldn’t be more upbeat – or indeed more charming.  Rocksure is just about to launch its third fund, the Capital Fund, which offers investors a fractional ownership stake in a portfolio of apartments and town houses in 10 European cities.  It follows the firm’s original two ‘villa’ funds: Alpha, which raised nearly £6m in eight months after its launch in 2007, and Bravo, which launched last January and is taking a little longer.

So how’s business? ‘Fine. Astonishingly,’ says the amiably self-deprecating Rogers, a former COO of Abercrornbie & Kent, which launched Rocksure in 2006 with Desmond Patrick-Smith, who used to be A&K’s MD.  ‘We’re extraordinarily fortunate, especially compared with the misery elsewhere. Alpha is all invested in prime properties in prime locations; that’s safe and sound.  Bravo is going on at its own pace - slower than we hoped but not surprising in the current climate.’ It shares the same model as Alpha, offering 40 units of investment at £189,000 each.  The clients own the houses, and get to use their choice for four rent-free weeks a year. After seven years, the properties are sold and the profits shared.

‘Bravo is closing in stages. It’s achieved first closing, which enables us to buy. We’ve bought two properties and agreed terms on third.’  He says that the shareholders understand that it has to be ‘stretched out a bit’.  ‘They still have the same number of houses per shareholder, which is the important thing - they just haven’t got Brazil yet.  It will be along and the seven-year fund doesn’t start until final closing, so they’re actually getting a bonus period.’

The Capital Fund has the same basic structure as the villa funds, but the entry costs are lower (€115,000 for a full share, which buys 14 nights; minimum investment is €57,500 for a half share with seven nights), the properties are typically smaller (city apartments and town houses), and the destinations are closer, which opens up new markets, says Rogers. The villa funds always had ‘built-in disadvantages’, he confesses. The villas are large, and necessarily in long-haul destinations, essential for a year-round season - but that doesn’t suit everyone, notably the older, or ‘grey market’.  ‘Who at 60 wants a five-bed house near Rio?’ he asks.  Moreover, Rocksure hardly touched Europe - the ‘most interesting continent on the planet and just down the road’ - because it didn’t fit the original model.

The new fund offers Europe’s highlights. Most of the locations picked themselves, he says: Paris, Florence, Rome, Venice, London.  They added Barcelona because ‘it’s very buzzy’; Cannes and Marbella ‘because they’re warmish in winter’; and Prague and Vienna to ‘represent the east’.  He reels off the advantages: ‘all have year-round seasons’; ‘if you don’t like flying and think airports are foul you can go by rail’; ‘you don’t need to get a big party together: they have two double rooms, plus sofa beds and rollaways’; and they let you put a ‘toe in’ to international real estate investment.  Even better, he says, is for clients to mix and match a full share in the Capital Fund with a half share in Bravo.  ‘So for €200,000 they have access to 16 properties for four weeks in 12 different countries.’

But doesn’t the market worry people?  It shouldn’t, says Rogers.  ‘We’re in a great position as cash buyers. We just bought a house in Portugal - he was trying to get €1.8m and we agreed €1.25m cash.  There’s no gearing: we made that decision back in 2005, and it has really come into its own now. It’s wonderful not to have mortgage debt and bank worries. Desmond and I walk the streets ourselves. We don’t subcontract. We see every house available that could possibly fit the spec.  Our market is very similar to A&K so we know what upscale people want. We understand the importance of location, and what really matters in a property so that there are no obstacles when we come to sell.

‘When the fear chapter subsides - which it must do soon because the banks are going to have to come clean and put a line under their liabilities, and governments worldwide are committed to supporting them - then we’re in for a nasty recession for however long. But that won’t really trouble our market: intelligent wealthy people. For them, 2009 and 2010 will be the best time to buy high-quality residential property for decades. We will be able to get more spacious apartments in better locations than we would have done. All investors like to feel that they are buying at the bottom - and they will have that feeling. So it’s not so ridiculous.’ Indeed, on this dreary day of days, it doesn’t seem ridiculous at all.

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Date: March 4th 2009 - Publication:"Bath Life" -  Title: "Great Escapes"  Author: Laura Rowe

Stepping off the plane alongside holidaymakers bearing body-bags and golf clubs Laura Rowe discovers there’s more to the Algarve than simply pitch and putt

As you land at Faro airport you could be in almost any southern Mediterranean country.  The odd palm tree, warm breeze and crazy drivers are all too familiar:  But head out a bit into the rich Algarve hillsides and you’ll soon realise there is more to the Algarve than sun, sangria and golf’.

 Sanctuaries and sardines

Our first stop after our early flight was the marina of Vilarmoura.  Wanting to start the weekend as we meant to go on we headed for a massage in the Angsana Spa at the Tivoli Marina Hotel, once the chicest in the area.  A heavenly experience, one only to be topped by the food and drink we sampled at one of the many restaurants along the marina.  Several sardines later and we went to our home for the weekend - Casa Alto do Cerro in Goldra. And, with arguably the best panoramic views of the Algarve and a cooling outdoor pool we soon felt perfectly relaxed.

 The next day, after a satisfying sleep helped no end by a hearty authentic Portuguese meal at the Casa, we were keen to see the local sights.

Loulé is a mere 10-minute drive away.  The best place to start our tour, we discovered was at the 16^th-century Lady of Piety sanctuary and chapel.  Not only is it a beautiful building in its own right, with some of the most awe-inspiring religious iconography painted on its ancient tiled walls and 11th-century alter, but it also provides the perfect vantage point from which to view the rest of the city.

Perched up on the hillside you will be able to see locals (and the odd tourist, too) bustling through the daily gypsy and farmers’ markets opposite the former convent of San Antonio.  And, if you have time to wander through the rest of the city’s narrow maze of cobbled streets it is well worth the effort.

Look out for the hand of Fatima (the daughter of the prophet Mohammed) protectively inscribed on many a door; see if you can find the statue of the poet sipping coffee outside a café or perhaps visit one of the many attractions within the city.

There is also the museum of dried fruit, the architectural museum as well as the medieval castle, local craftspeople and Church of São Clement from which you can hear the loyal chorus every Sunday.

After a quick dash around the city in the gentle morning heat we headed to Val do Lobo - one of the areas most popular golfing resorts. Thanks to the Algarve’s year-round good weather (I was reliably informed that the temperature rarely drops below 15°C and rarely rains) it’s a haven for golfers.  Val do Lobo was the first luxury development to be built in the Algarve specifically catering to this quiet and considered breed of sportsmen (and women).  As a result, even if golf isn’t your thing, there are plenty of wonderful restaurants and bars to unwind in.

Scarlet kings

Nearby is the resort of Quinta do Lago, which if you like seafood, deserted white sandy beaches and a touch of natural beauty, is a must-see.

Travel past the purpose-built apartments, acres of pristine trimmed golf courses and designer shops and you will come to the vast lakes of the Ria Formosa Natural Park.  Not only does this reserve support the harvest of local grooved carpet shells but well over 100 different varieties of birds taking a pit stop during their migration.

Across the lakes, over a long footpath, you will stumble across what at first glance looks like a traditional beach hut restaurant;  but, Gigi’s is altogether rather something special.  The beach behind us, was on that warm autumn afternoon pretty much deserted.  Huge scarlet red king prawns and juicy rings of fresh squid, just cooked,  drenched in a spicy garlic butter arrived at our table, while the alabaster flesh of a whole roasted seabass happily fed the six of us dining.   Surely this place alone has given the Algarve its reputation for its amazing fresh fish.  However if it is haute cuisine you are after then only a five minute drive from the casa in Almancil is Potugal’s only Michelin-starred restaurant, the sublime Amadeus.

How did we get there?  We flew from BristoI Airport to Faro with Easyjet.

What’s the accommodation like? With all of the comforts of a hotel but the freedom of a home, Casa Alto do Cerro is the perfect base for a holiday in the Algarve.  As well as the 360° panoramic views across the Algarve, spacious five-bedroom accommodation and prime location it couldn’t get much better.  Plus the house is looked after by a housekeeper/cook who will prepare meals should you wish, as well as a gardener and maintenance person.

What will it cost? As a Rocksure Property Limited property the Casa can be both rented on a weekly basis starting from £2495 in mid season or can be bought as part of the Bravo Fund. The Bravo Fund consists of 40 units (costing £189,000 each). Each unit entitles the owners to an average of four rent-free weeks per annum - not just this property (although I assure you, you will fall in love with the Casa) but also at any of its six properties across the world in Brazil, Croatia, Colorado, Morocco and Thailand.  The properties are to be sold after eight years with investors obtaining not only a repatriation of capital and 82.5 per cent of any profit made.

What else can I do? As well as the endless sandy beaches and golf courses in Faro there is also plenty to keep you occupied from a maritime museum to a 19th-century playhouse, castle, palace and cathedral.

What else do I need to know?  Rocksure has also been busy creating the Capital Fund which launched earlier this month with 10 properties across Europe.  For more info visit the website.

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Date: Jan 29th 2009 - Publication:"Bath Cronicle" -  Title: "A Slice of the Good Life in Faro"  Author: Emma Dance

Perched high on a hillside with panoramic views of the Algarve and the Atlantic Ocean the views from Casa Alto do Cerro are breathtaking.

Just 15 minutes from Faro airport, and within striking distance of beaches, restaurants and golf courses, this luxury villa at Goldra in the heart of Portugal's Algarve region makes an ideal holiday destination for the whole family.  Set in expansive grounds, with a heated swimming pool, and with its own housekeeper who will cook for you, and even do the shopping if you ask her nicely, at Casa Alto do Cerro you will want for nothing.  And with guaranteed sunshine almost all year round what more could you ask for? 

The villa sleeps ten people. There are four ensuite bedrooms (including one master suite, complete with jacuzzi bath) and a fifth bedroom with its own separate bathroom.  The two upstairs bedrooms open on to a terrace balcony which offers magnificent views of the swimming pool, gardens and beyond.  Downstairs the comfortable living area is furnished with large sofas and easy chairs, a woodburning fire and a large flatscreen television and DVD player.  There is a games area for the kids and a computer with internet access.  It would be easy to spend a week just relaxing and soaking up the sunshine, without ever leaving the villa.  But if you do want to venture further afield there is plenty to do. 

The historic town of Loule has a popular weekly market and is renowned for its local crafts.  For a spot of sunbathing, beautiful sandy beaches with sparkling blue water can be found at the resorts of Quinta de Lago and Val do Lobo, which are also home to world famous golf courses.  A stroll around the marina at Vilamoura with its plethora of bars and restaurants is a pleasant way to while away an hour or two and if you feel the need for even more relaxation then a visit to the Angsara Spa, which opened in August 2008, at the Tivoli Marina hotel, is well worth a visit.  For foodies, the local cuisine is a delight. Seafood is the speciality.  Locally caught sardines are available at almost every restaurant and washed down with some Portuguese wine are a real treat.  The best fish in the area however can be found at Gigis.  Although it looks like a ramshackle hut lying somewhere between the sea and the Ria Formosa nature reserve, it has become famous locally for its fresh seafood and dining is by reservation only.  For something more formal however, Amadeus, Portugal's only Michelin-starred restaurant is just a few minutes down the road at Almancil.  But if you don't want to leave the comfort of Casa Alto do Cerro then a chef can be brought in to cook local specialities. 

Although Casa Alto do Cerro can be rented by the week, perhaps a more appealing alternative for the well-heeled is to own a slice of six properties just like it. 

Rocksure Property Fund is not a time share.  Instead, it allows 40 investors to join a fund which, for £189,000, gives them a slice of bricks and mortar in six properties around the world, all worth at least £1million each.  Rocksure has now opened its second fund, Bravo (Casa Alto do Cerro is part of Alphs, the first fund), which will have properties in Buzios, Brazil; the Adriatic Coast, Croatia; Phuket, Thailand; Colorado, USA; Marrakech, Morroco and the Algarve, Portugal.  Investors can visit the properties rent-free for four weeks each year and after seven to eight years the fund closes, the properties are sold, and the proceeds divided. 

Rocksure is soon planning to launch the Capital Fund for apartments in selected cities around Europe – think luxury city breaks in cities such as Cannes, Prague and Marbella.

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Date: Jan 19th 2009 - Publication:"International Homes Vol.16" -  Title: "Casa Alto do Cerro, nr. Faro"  Author:

Casa Alto do Cerro, Near Faro

Investors (40 per fund) in this property fund get access to six properties around the globe for four weeks each year including this stunning villa.  Shareholders can therefore enjoy the benefit of owning a property abroad without the hassle, risk or large capital outlay associated with owning a house in just one destination.  Casa Alto do Cerro in Loule is a spectacular five-bedroom property with a heated swimming pool, spacious terraces and wonderful 360° panoramic views over the Algarve and Atlantic Ocean.  It can accommodate up to 10 adults and is within easy reach of some of the region’s most treasured golf courses.

The other houses are located in Thailand, Morocco, Croatia, Colorado and Brazil, destinations that have been chosen for their global appeal and strong potential for capital appreciation.  Each fund has a seven-year life span and at the end of this time the properties are sold and shareholders receive a return on investment
From £189,000

Rocksure Property +44 (0)1993 823809

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Date: Jan 15th 2009 - Publication:"Fractional Life" -  Title: "Rocksure Property launch new Capital Fund"  Author:

Rocksure Property launch new capital fund

On 2 February 2009, Rocksure Property’s brand new Capital Fund will open its doors to investors for the first time. Rocksure Property has adjusted its third investment fund model to take advantage of current economic conditions and meet investors’ needs. The new European fund will offer investments in 10 of the continent’s most attractive cities. The entry costs are lower, the destinations are closer, the locations just as tantalising and it’s probably best time to buy in years.

Following the success of its worldwide Alpha and Bravo Funds (which have generated combined investments of almost £10 million), Rocksure Property has drawn on feedback from shareholders as well as the triumphs of its previous matrix to launch a unique fund comprising apartments and townhouses in superb sought-after cities across Europe. Capitalising on current market conditions, this new property fund will appeal to individual investors (both young and old) looking to explore the cultural, culinary and scenic highlights of Europe as well as to companies seeking to host important clients and prospects and to incentivise and reward key staff.

The collection of sumptuous properties (costing between €1million and €2 million each) offers equity based investments in some of the most stylish destinations: Paris, Cannes, London, Barcelona, Marbella, Venice, Florence, Rome, Prague and Vienna. Such is the kudos of these locations that it is hard for individual investors to buy, let alone afford, property in the prime locations. Investors in the Capital Fund can rely on Rocksure’s experience, leverage and collective fund budget to access not one but ten sophisticated hideaways across Europe negating the need to make the agonizing choice of where to invest and alleviating the risk associated with one-off purchases furthermore, there is no need for shareholders to commit any time to managing the properties.  

Just like Rocksure’s previous funds, shareholders will enjoy a guaranteed return and a hedge against future inflation from rent-free holidays at their properties of choice and will receive their share of any capital appreciation achieved at the end of the life of the fund (10 years in the case of the Capital Fund). The properties will average at least 1500 sq.ft. with 2 bedrooms and 2 bathrooms and will benefit from daily maid and concierge services. Offering much more personal space, privacy and freedom than a hotel, owning your own home away from home will encourage you to return again and again and become a real ‘insider’.

Investment in a half unit is available at €57,500 allowing 7 rent-free nights ideal for two ‘short breaks’ each year (with an €1,050 first year’s maintenance charge). A full unit of shares is also available for €115,000 allowing shareholders an average of 14 rent-free nights (3, 4 or 7 night combinations) each year. First year’s maintenance charges are €2,100 for a full unit. The first twenty early bird investors will become Premium Shareholders receiving a discount of €10,000 (over 8%) on the subscription price per unit and ‘bonus time’ usage.

Combined investments in the Capital Fund and worldwide Rocksure Property Bravo Fund can also be made for less than £200,000 giving investors access to 16 stunning properties in 12 countries around the world.  The Bravo Fund destinations include Brazil, Thailand, Portugal, Morocco, the Rockies and Croatia.

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Date: Jan 7th 2009 - Publication:"Arabian Business" -  Title: "A House for All Seasons"  Author: Kim Latham

Owning a second home in an exotic location is appealing. However, complicated legislation often scares off buyers. David Rogers of British company Rocksure
is enticing investors to purchase abroad by spreading the risk and increasing rewards.

Think timeshare. Investors spend well-earned money on leasing holiday properties in various locations for so many weeks a year. But when the time runs out what do investors have to show for it? British company, Rocksure may well have come up with a more modern equivalent for today's real estate investor.

"Timeshare at its worst was an absolute rip-off because they took large amounts of money off people and delivered nothing in return really, a week here, a week there. This has a flavour of timeshare in that you have shared-use at times. But the cornerstone is that you own the buildings," says David Rogers, Founder and Director of Rocksure.

David Rogers has worked in the travel industry for most of his life. But one memorable trip to the United States has dictated the direction of his so-far successful, England-based company.

‘Destination Clubs' in the US see many-an-American writing US$300,000 cheques to become members of an organization that give investors access to a number of beautiful properties around the country. The upside is customers have the opportunity to holiday in glamorous surroundings, the downside, as Rogers quickly discovered, is that properties are owned by directors of the club - and not those handing over the cheques.

"I thought the idea of sharing the assets was nice but when I realized people writing the cheques didn't own the houses and they were owned by the entrepreneur, I thought it was crazy and it would never work in England. The Brits have a love affair with bricks and mortar so I turned the idea around so that people writing the cheques actually own the houses," Rogers says.

The Rocksure Property Alpha Fund is a villa fund launched in the UK in 2006. On closing in July 2007, the fund boasted subscriptions of some US$9m from around 36 investors. At the beginning of this year, Rocksure launched its second fund - the Bravo Fund - which has received subscriptions of some US$6m to date.

Individual investors pay a cash lump sum of around US$300,000 to Rocksure - an amount that even in today's fragile climate wouldn't give buyers very much house for their money if choosing to purchase a second home alone. What's more, this money is used to buy US$1.5m properties in prime holiday destinations all over the world.

"Instead of putting US$1m into one place, you put US$300,000 into six places. The destinations were chosen very carefully so there is a spread of climate zones and we believe the medium-term opportunities for capital gain are good. We've chosen places that have world markets," stresses Rogers.

Thailand, Portugal, Colorado, Brazil, Morocco and Croatia are all on the luxury shopping list of the Bravo Fund. Two properties have been bought so far - Colorado and Croatia - and the others will be purchased if and when more buyers jump on board the investment bandwagon. A total of 40 investors are being targeted with this fund and with a total of 40 units available the fund is expected to eventually hold around US$11.3m.

The fund expires after a planned exit of around seven to eight years. During the run-up investors are entitled to use the properties as holiday homes - rent free.

A full unit entitles an investor to use properties four weeks a year on average. The minimum investment is a half unit which costs US$141,430 and gives the user two rent-free weeks a year. A concierge service is on hand at every destination along with a housekeeper, cook and pool attendant. Rogers is quick to point out, however, that this scheme, perhaps surprisingly, is not for the mega-rich.

"Our shareholders are not flash people. They are sensible, high-earning people who want a good time. We've never presented ourselves as a platinum operation. We have no chandeliers or butlers. We might call ourselves a gold organization and we'll leave platinum to the footballer's wives," he jokes.

In essence, what the fund offers is the opportunity to buy into grand holiday homes. As the investment is conducted on a cash-only basis there are no mortgage ties and the risk is spread out over numerous properties (as opposed to having all your life earnings tied up into one or two homes.)

A clear benefit to this is that buyers don't have the hassle and headache of having to deal with foreign legislation and complications over a country's land laws which they perhaps would encounter if they did this alone, - this is the job and responsibility of Rocksure who is regulated by the UK Financial Services Authority.

Perhaps another incentive is that investors can rent out their holiday time to other people if they prefer to gain a yearly dividend instead.

Spare cash

It appears that the type of investor most likely to benefit from this kind of fund is those with spare cash to spend and those that don't need the money back in a hurry, if at all.

The good news with regard to investor security is that Rocksure doesn't even begin to purchase properties until it has at least 20 investors. Then, the company increases the number of houses after receiving six or seven new investors at a time.

"Investors put up the cash in the beginning and we pay cash for the houses. This makes it a safer investment, it may reduce returns but the people investing want to get their capital back, have a good hope that they will make a capital gain. If there was a lot of gearing, the returns might be higher but they like the cash and the security," emphasizes Rogers.

Once the seven to eight years is up - investors can then choose to take their money and run or recycle their capital into another fund.

"We can be described as a safe haven. This is what people want to do, they want to keep their lifestyles going but want to reduce the cost of it all," says Rogers.

And that's not all. In more recent times Rocksure launched the Capital Fund in Dubai with the aim of targeting wealthy Emirati investors looking to partake in the culinary and cultural delights of Europe.

Apartments in London, Paris, Rome, Prague, Venice, Cannes, Marbella, Florence, Barcelona and Vienna have been chosen in an attempt to entice more cash investors to a fund that boasts properties in cities that claim a rich tapestry of history, art, architecture, music and literature.

Capital cities, capital gain

"Dubai is a good place for our first international market. This is the sharing of 10 apartments or townhouses in Europe. It's a way of being able to explore Europe and to have short breaks without a huge hotel bill at the end," confirms Rogers.

This fund boasts luxurious properties of around 150 sq m across 10 cities. Owners of a full unit are entitled to around two weeks of rent-free stay during the 10-year life of the fund. This fund, claims Rogers, is ‘ideal for companies wishing to extend hospitality to retain existing clients or win new ones.'

While Rogers says this fund is also targeting the expatriate community in Dubai, the decision to target Emiratis with the Capital Fund is because of their love of huge properties and privacy.

"My understanding is that when Emiratis travel on holiday with their families they like huge properties and the privacy that comes with it. They like to have the freedom of their own place. We can offer that. Our house in Phuket for example, is 5,500 sq ft and can sleep 15 people. I also think Emiratis love to travel to Europe so our Capital Fund is ideally suited to them."

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