A concept is as good as its implementation. Fractional ownership is a concept that has been beaten to death. It requires an overhauling to give it a fresh lease of life. Lifestyle Asset Group a new fractional ownership company seems to have done just that. It has been dubbed as the ‘next generation of luxury vacation’. They have taken the same investment fund/equity-based club model but made it simpler and more transparent. The ownership issues are clearer and exit and transfer options have also been made simpler and attract no penalties or fees. They have also limited the number of participants to 100 who can collectively own 12 residences.
The simpler structure of the business model ensures that it is more effective than others operating on the Collective Asset Ownership model. Lifestyle Asset Group claims that it has managed to keep their operations debt free and plan to keep it that way as they move ahead and fine tune their business model as per the needs and desires of their fractional owners.
Lifestyle Asset Group was founded by Richard Keith who had in 2003 founded Private Escapes, a destination club which quickly grew into being the third largest company in the luxury real estate/travel industry. After the company was acquired in 2009 Keith along with his colleagues Ed Powers, Karla Jones and Tommy Robinson launched Lifestyle Asset Group. Their collective vast experience in the field of vacation clubs enabled them to create a unique model based only on the best practices of the industry.
The aim was to create a structure that was easy to use and beneficial for each of the equity owners and their families and friends. They have been particular about choosing properties in prime locations that would inspire the owners to return again and again. They have adapted the model in such a way that the risks for the owners have been minimized. The ownership agreements have duration of seven years at the end of which the company will divest the assets, take a cut of 10% from the net gains and return the proceeds to divestment to the owners.
The owners make a one-time capital contribution of $300,000 and enjoy seven years of residence access booked on a first-come, first-served basis. The residences’ average value is $2.5 million. Lifestyle Asset Group serves as the management company enabling travel and maintaining the residences for the equity owners. The owners also pay $30,000 in annual maintenance costs and usage. They receive 5,000 credits per year that they use to avail of stays in different properties. Each night is assigned a credit value that varies by destination, property size, arrival day, and time of year. The owners can be assured of 30 to 40 nights of vacation a year. Residences currently available are a four-bedroom, 4,770-square-foot Antebellum mansion in Charleston, South Carolina. Also available is a five-bedroom, tropical residence in the Caletón Estates in Cap Cana. The owners her have the additional benefit of the access to the Punta Espada Golf Club and Caletón Beach Club, with a terraced swimming pool, spa treatments, and full-service dining.
Lifestyle Asset Group will soon boast of residences in destinations like Turks & Caicos; Naples, Florida; Chicago; Riviera Maya, Mexico; Miami; Vail, Colorado; New York; Palm Beach, Florida; Asheville, North Carolina; and Watercolor, Florida. The company is headed for fast growth and we promise to get back with the details of new residences they acquire in the near future.
