Rocksure Property Closes In On Full Bravo Fund Subscription
By: Destination Club News
Date: March 22, 2010
Rocksure Property, one of Europe's fastest growing destination clubs, will soon reach full subscription of their second offering, the Bravo Fund. At present, just 1.5 units remain before final closing of the fund first introduced in 2008. Last month we spoke with Founder David Rogers to discuss his concepts on property acquisitions, modeled around members contributing their capital before the club purchases a property.
"We have never in five years bought a property without having sufficient Shareholders' money to cover the purchase price and related costs, including furnishings, in the bank in advance," Rogers said. "The reasons are partly because we don't think that our Shareholders have signed up to us taking that kind of risk on their behalf, partly because we don't want to add mortgage interest to the normal running costs of the properties, and partly because we have proved that we can buy better if we can offer full payment in cash to the vendors. Our investors pay 100% cash up-front to us and we pay 100% cash to the vendors."
Rocksure Property's Bravo Fund offers half, three-quarter, and full unit options, allowing a respective two, three, and four weeks of average annual access to club residences. These shares are available for £94,500, £141,750, and £189,000 respectively.
"No one told us, when we launched the Bravo Fund in 2008, that the western world was going to suffer the most severe financial collapse since 1907 and the worst recession since the Thirties, or that a single bank would fail with debts of over $600 billion," Rocksure writes in their most recent newsletter. "Things have nevertheless worked out remarkably well for Bravo Fund Shareholders, mainly because the recession has created a buyers’ market which has enabled the Fund to buy spectacularly well."
Rocksure Property cites a €1.8 million residence that has been "beaten down" to under €1 million. Another property saw a reduction of €500,000 in addition to having the home's furniture included and the car port turned into a game room. While the cost savings the club has enjoyed in recent years adds to the financial appeal of the club, the properties themselves are likely the stronger attraction. Earlier this month, Rocksure Property's Portugal residence took home our property of the week honor for its 360° views of the Algarve and Atlantic Ocean.
Created in 2006, Rocksure Property has already sold out their Alpha Fund and continues to market their Capital Fund, a collection of Europe's most popular destinations for culture, literature, and music. Over the past year, many destination clubs have been dramatically affected by the current economic climate. As evidenced by the near completion of their Bravo Fund, Rocksure has enjoyed much more success than many of their competitors. Despite their strong sales figures, Rogers doesn't expect to see strong signs of recovery until 2011, adding that "Rocksure has the strength to get through."
If you are interested in destination club membership with Rocksure Property or any other destination club, request a free copy of our Destination Club Guide for more information on the benefits and risks of joining.