It’s nice to see how the other half live, and while in London recently I had the fleeting pleasure of spending a weekend in a luxury Bankside apartment, just a five-minute walk from the Tate Modern and the Thames. What a tease.
It is often said that to really enjoy living in London, a certain amount of wealth is required. Having never lived there myself I cannot confirm this, but I can certainly say I am a fan of visiting London when I have a swanky three-bedroom apartment as my home base. Padding into a gorgeous open-plan kitchen each morning to prepare an espresso and gaze out at the view of the Thames and St Paul’s Cathedral over breakfast? Yes, I could get used to this.
And if I were a member of The Hideaways Club, I would be used to it. The brainchild of Fitness First founder Mike Balfour, The Hideaways Club is a fractional ownership fund whereby members have an equity investment in a portfolio of luxury properties across the world. Until they sell their share in the company, members have access to these properties for their holiday needs, plus the services of a private concierge team to manage bookings and stays.
The Hideaways Club consists of two components: the property company, which is wholly owned by the club’s members (equity investors), and the operating company, which manages the properties on behalf of the members. When joining the club there are different types of shares available, which differ in price according to usage requirements. Members buy a share in the property company at the current share price, which is revalued at least once a year. The investment can be in a portfolio of villas and ski chalets, known as the Classic Collection, or in luxury two- and three-bedroom city apartments in the City Collection.
So, for example, for a Premium Membership in the Classic Collection at a cost of GBP 250,000 (US $386,000), you will get a full equity share in the Classic Collection Property Fund. You will then pay an annual membership fee of GBP 14,000 ($22,000), and this gets you four to six weeks per year in any of the Classic Collection properties around the world, plus the use of the concierge team to book and manage your stays.
If you decide to leave, you can sell your share at the current share price. There is a 10 percent administration cost for shareholders exiting before three years of membership and the exiting shareholder receives 80 percent of the capital gain at the time of selling. After three years of membership, the sales fee is reduced to five percent.
Fractional ownership is a relatively new concept and it generally offers a more stable alternative to independent second-home ownership and timeshare options, but be sure to complete your due diligence before committing. There are agencies such as the UK-based Fractional Ownership Consultancy (www.fractional.net) to help with this.
Fractional ownership schemes were first made popular in the late 1990s by American developer Rob McGrath, who created his Private Retreats vacation club after interviewing 2,500 potential timeshare investors in the mid-1990s. He found that most would have preferred to invest in a variety of homes across different destinations rather than tying themselves to one property or committing to a timeshare.
One of the main benefits of this kind of model is the freedom it provides. Not only do members have access to a variety of properties in different locations, they will also benefit from safety in numbers. In the case of The Hideaways Club, the properties in the portfolio are located in different parts of the world, so if there is a property slump in one location it will be cushioned by the properties in other markets.
The Hideaways Club’s portfolio has been hand-picked by a team of property specialists who make their selections based on each property’s potential to appreciate in value, as well as their desirability as a holiday home. The annual cost contribution (essentially a yearly membership fee) takes care of all the upkeep; in other words the club absorbs the time, effort and costs associated with maintaining and managing a property overseas.
My experience with The Hideaways Club felt very much like an exclusive private members’ club. I was contacted by the Central Concierge team before my trip to confirm the reservation and set up airport transfers. I could also arrange for grocery shopping to be done and unpacked prior to my arrival, specifying any particular items I desired. The concierge team can also make any arrangements needed for club members travelling with additional guests or children, such as changes to sleeping arrangements and babysitting services.
Once I arrived in London I was met by the Local Concierge, who took me on a tour of the apartment to show me how everything worked, introduced me to the 24-hour security team in the lobby, and ensured I had everything I needed before leaving me with the keys. She was also on hand to make restaurant or theatre bookings, arrange housekeeping, or assist with anything that would make my stay more comfortable.
The apartment is stocked with everything you would need or want — books, games, a DVD player and DVDs, a Nintendo Wii for the kids, a fully operational kitchen, flat-screen TVs, an iPad and high-speed WiFi access. I only stayed at the Bankside apartment for a weekend to get a taste of what it would feel like to be a member of The Hideaways Club, but I loved arriving and slipping right into a luxurious private home set-up without any hassle. For international jet-setters, it’s an ideal way to travel. I think James Bond would approve.
THE HIDEAWAYS CLUB
The Hideaways Club has two portfolios and various membership options.
The Classic Collection is a portfolio of 32 luxury villas and ski chalets with a target cap of 600 members and a member-to-property ratio of 6 to 1. A further 250 properties are available to members through reciprocal agreements with similar clubs in 70 locations around the world.
The City Collection is a portfolio of two- and three-bedroom luxury apartments in the world’s most sought-after cities including London, Paris, New York, and Dubai. There’s a member-to-property ratio of 10 to 1, with a target cap of 1,200 members.
The City Collection currently includes 14 apartments. A further 70 apartments are available to members through reciprocal agreements with similar clubs in 18 cities around the world. Members also have the option of buying into a hybrid membership, which grants them a share in both portfolios.
Tel: +44 20 7824 9940
Contact: info@thehideawaysclub.com
www.thehideawaysclub.com
