DC4MS

QUINTESS, THE LEADING RESIDENCES OF THE WORLD, COMPLETES LARGEST EQUITY INVESTMENT ANNOUNCED TO DATE IN THE DESTINATION CLUB INDUSTRY FOR $210 MILLION

BROOMFIELD, Colo. (April 10, 2008) – Luxury destination club, Quintess, The Leading Residences of the World (LRW), announced today that its parent company, Club Holdings, LLC, received a commitment for $210 million in equity from an undisclosed Forbes 400 investor. The transaction is the largest infusion of capital announced to date for a luxury destination club, and is a cornerstone of the Company’s ten-year financing strategy.

“Consumers considering membership in a destination club are looking not just for exceptional quality of homes and services but for a club’s financial strength and security,” said CEO Pete Estler. “This funding positions Quintess, LRW as a dominant, long-term player in the luxury destination club market.”

“There are exceptional opportunities to develop and acquire luxury real estate in the world’s finest destinations on very favorable terms,” said Estler. “Our goal is to develop the largest portfolio of luxury homes in the world with home assets in the multi-billion dollar range over a ten year period.”

The $210 million capital commitment will be used for the development of new businesses, corporate mergers and acquisitions, and for real estate development projects that further enhance the Club’s current $300 million dollar portfolio of private homes around the globe.

Last spring Club Holdings announced Quintess Future Fund 1 which provided $125 million specifically for the development of new homes for the Club’s portfolio. The new capital commitment provides the Company with the capital required to grow its business domestically and globally, invest in new sales and marketing initiatives, and to explore strategic initiatives in new business development and mergers and acquisitions.

AmyG

The club also announced a new development on West Caicos today.

Quintess, LRW Adds Private West Caicos Enclave to Portfolio | Halogen Guides Real Estate - Luxury 2.0 Guides and Reviews

Amy Gunderson
Halogen Guides

sercano

All i can say that is wow

ER is starting to have a tougher competition and they are really BEACHFRONT on that development

DC4MS

We have to give "props" to Halogen Guides for breaking this story. The West Caicos development will be incredibly nice.

I will start a new thread about the West Caicos announcement.

DJTraveler

Wow is right. QN - looks like a breakaway. These home are the real deal, like so many others in the portfolio. Consist quality is what is most attractive. Guessing ER would have been the club partner for this deal several years ago, but today they would need 25-30 of these which isn't possible without high density and besides are out of their price range. - These ARE beachfront! Talking with them now. Very impressive

MARMAR

It's great to see new capital follow this market. Do you suppose they will expand by purchasing another club? There are some good clubs out there that could sizeably improve the footprint of Quintess. It might require them to add a new business line such as a lower priced product for new members. Expansion into lower priced markets may be the only way to compete in the long run.

Kagehitokiri

the only club they could buy (with $4MM properties) would be oyster circle. and thats an "equity" club.

jam

Does anyone know much about Oyster Circle? I think this might make sense as a second club and would be an intersting acquisition candidate. It seems like many clubs have European destinations in their future plans, but those who have actually done it, have very limited options that are reportedly difficult to schedule because of high demand. I would think most DC members would like to do a couple of weeks a year if possible. I also think being able to schedule a two contiguous weeks would be good because of the longer travel times.

Kagehitokiri

New Funding Adds $210m for Quintess - SherpaReport
im not sure i really understand the concept of having multiple clubs. except in lusso's case where they want a 550 member cap per club. quintess currently has an 800 member cap, and only 460+ members...

ok, i guess if they thought demand would be high enough right now, since they have the capital they could go ahead and launch other regional club(s), instead of waiting for their current one to sell out.

its not the best time to be buying up a lot of european properties, in terms of property quality, considering the current exchange rate. ($4MM = €2.5MM) OTOH, perhaps the club views it as an investment in the euro, and is looking for RE markets that might see high appreciation soon.

jam

Speaking of European offerings. I was curious as to what had happened to the Umbrian properties that Tanner and Haley claimed were imminent the last few years of their existence. They had invested or at least committed to invest quite a bit in a project called Castello di Reschi. It looks fairly similar to Castello di Casole that Timbersclub has developed some units of which have been purchased by ER. The website of Castello di Reschi is still operational and there seem to be some villas available for both sale and rent. I realize with the weakness of the dollars European acquistions might be a problem, but it would seem like some DC trying to rapidly add some inventory might invest here and have a cluster of properties where they could leveage concierge services, cleaning, etc. Anyone elso have any thoughts?

Kagehitokiri

whats the site for Castello di Reschi?

castello di casole and castiglion del bosco definitely looked great.

jam

Sorry, Kage: It is spelled Reschio at reschio.com

Kagehitokiri

thanks! at first glance, looks pretty nice, good to know.