Business partners Richard Lowther and Chris Mathew, who run a virtual niche company specialising in developing fractional ownership properties, have just embarked on their first fractional sales investment in Malta.
Fractional ownership enables people to own an interest in a luxurious property that they might otherwise be unable to afford.
Fractional Development Express (FDE) is offering one- thirteenth shares, with two separate two-week periods of the year, being allocated on a rotational basis, in a two-bedroomed apartment at Tigné Point’s T10 block for €58,000.
Both entrepreneurs visited Malta about a year ago to try to identify an ideal property with which to launch their pilot project.
“Tigné Point stood out. You are in the heart of Sliema. You’ve got the pjazza, the shopping centre… in a sense, you have your own little holiday spot and facilities right on your doorstep,” says Mr Lowther, who is in Malta to launch the pilot project together with local business partners Remax.
Mr Lowther set up FDE with Mr Mathew in 2009. Both have been involved in the fractional business for many years, with previous international careers in the tobacco industry and financial services and banking respectively.
The two entrepreneurs moved around a lot and have had holiday homes in many places. Having connections with South Africa, together with a fractional ownership venture up and running in Cape Town, they have been exposed to the concept for some time and have decided Malta is a way to develop their business further.
“Fractional ownership is a comparatively new concept, becoming more popular particularly within the current property market, where people are more interested in getting value from the lifestyle aspect of a property rather than from appreciation,” Mr Lowther points out.
The 148-square-metre apartment is on the first floor of the T10 block and comes with a sea view. However, Mr Lowther says, it is not one of the most expensive apartments at Tigné Point.
“We chose it because when you are in the apartment, you know you are in Malta. We wanted a property with the Maltese ambience and, with views of the Valletta skyline and Marsamxett harbour, I think we have achieved that.”
Fractional sales started in the US some years ago. Like the property market in general, it has slowed down an awful lot, but is catching up again, with fractional businesses in Europe increasing from 60 to 90 in number during 2008-2009.
Many people look at fractional ownership and sales in the same way as timeshare.
In concept they are similar, but Mr Lowther points out some very important differences. Fractional ownership is co-ownership of the same property, “so the investor has a lot of say in how the property is operated, run and managed, with an interest in capital appreciation”.
With fractional ownership, you own your share of the property, which is valued every year at the then market value.
“You inevitably run the risk of the market going against you, but that’s true of every property model.”
Mr Lowther believes Malta has a huge number of advantages, with plenty to offer in terms of charm, climate, transportation links, the sea, and the Mediterranean and English cultures.
“My expectations are that foreigners would want to come to Malta and use the property as a holiday home every year. It’s a superb development; the location is perfect for what we have in mind.
“We really do believe Tigné Point will be a success because the developers have done a great job there. It will be fantastic when the remaining construction is completed.”
To find out how the scheme works, visit http://fdexpress.co.uk or e-mail info@fdexpress.co.uk.
For sales enquiries, visit www.remax-malta.com/fractionalsales or e-mail fs@remax-malta.com.