Paul Dean, principal of Dean & Associates, was among 160 delegates and speakers at today's Fractional Real Estate Essentials conference overlooking Sydney Harbour. Here, Dean shares his report from the event.

Delegates were welcomed to the event by John Smith, of Horwath HTL in Sydney, and John Stawyskyj, of Blake Dawson, organisers and co-hosts respectively.

The audience heard an opening address from Dr. Richard Ragatz who provided a fascinating overview of the development of the fractional ownership industry over the last fifteen years as well as some definitions of the various product formats.

The address was followed by John Berenyi from Bergent, a market research company based in Melbourne who presented key findings from the Fractional Industry Report 2010, which had been commissioned by The Registry Collection in Australia. Dr Ragatz later presented his market depth analysis for Australia and New Zealand based upon Bergent’s research.

Given the complexities of the regulatory framework, the next session was given over to an examination of the legal complexities of establishing a fractional ownership scheme within Australia and was presented jointly by Rhonda Hare, a partner within Blake Dawson’s hospitality practice currently based in Singapore, and Robert Williams, a partner in the Baker and McKenzie practice in Sydney - and a specialist within the hospitality and resort development industry.

A range of diagrams were used to illustrate the structuring nuances as well as to emphasise the need for expert legal advice in order to ensure strict regulatory compliance.

Charisse Cox, managing director for The Registry Collection in the Pacific region, provided an overview of exchange basics and then outlined the range of benefits The Registry Collection provides for its developer affiliates, and its member base which now numbers some 35,000 fractional owners around the world.

The morning sessions wrapped up with an insightful set of presentations covering investment perspectives and the role of fractional products within mixed use developments. James Walker, head of investments - Asia Pacific, Blue Sky Capital, provided insights into his company’s involvement with the Residences at Little Nell in Aspen as well as the First Light project in Noosa, Queensland, where pre-sales of AUD$106m had been achieved in less than six months.

Andrew Taylor, development manager for Mirvac Hotels and Resorts, described the view of his company to the possible introduction of fractional ownership within three of its existing resort developments.

Finally Michael Burns, president and CEO of Private Residence Resorts based in Seattle, related his own experience as a developer, marketer, seller and operator of a number of standalone Private Residence Club (PRC) projects in Idaho and the lessons he had learned along the way.

The afternoon sessions began with a joint presentation by Dr Ragatz and myself examining the prerequisites for a successful fractional project and the traps to avoid. John Small, vice chairman of LaTour Hotels and Resorts based in San Diego, provided his perspective on fractional and PRC management, contrasting branded with non-branded properties and emphasising the importance of the service overlay, consistency in service delivery and the creation of truly memorable experiences for owners and guests.

A session on sales and marketing session led by Len Silverfine, president of the Big Idea Company, featured presentations featuring the First Light Seahaven project in Noosa from its sales director Joe Buchanan, and insights into three fractional offerings soon to be launched:

• Private Residence Club at Palm Cove in Tropical North Queensland, presented by Leigh Ratcliffe, CEO of Private Residence Clubs of Australia
• Dransfield Shared Ownership’s Magenta Shores, introduced by Dean Dransfield, managing director of Dransfield Shared Ownership
• Viridian Village Private Residence Club, also in Noosa, Queensland, provided by Ric King,  managing director of Lifestyle Fractions Pty Ltd.

The day was wrapped up with a Q&A session chaired by myself and featuring panellists Michael Burns, John Small, James Walker, Charisse Cox , Dr. Richard Ragatz and Rhonda Hare.

Fractional Real Estate Essentials was deemed an unqualified success, not least because of the participation of speakers who had travelled over from the US in order to share their expertise.

Report kindly provided by Paul Dean of Dean & Associates. For more information about fractional development across the Pacific region, check out the Fraction Facts website.

Sydney image kindly provided by Linh_r0m.

Ref: MCMXUUU4WCPB