Rocksure Property Reaches First Closing of Capital Fund

By: Destination Club News
Date: June 16, 2010

Over the past two months, Rocksure Property has received €1 million in new member subscriptions for their Capital Fund, pushing the fund to €2.1 million. With this notable achievement, Rocksure will begin purchasing properties for their destination club focusing on popular cities throughout Europe.

We spoke to David Rogers, Rocksure Property's Founder, earlier this year about the club's real estate acquisition philosophy. "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," he 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."

This format has allowed Rocksure Property to become one of the fastest growing destination clubs in the world. In March we profiled how the club had nearly reached full subscription of their Bravo Fund, joining their already completed Alpha Fund. All of these achievements during what Rocksure calls "the most severe financial collapse since 1907 and the worst recession since the Thirties."

Having achieved this first threshold for their Capital Fund, Rocksure Property is targeting an apartment in Paris as the first residence in the collection. The two bedroom, two bath property is scheduled to become available to members by late summer and will likely be found in the 8th, 9th, or 17th municipal district. Soon thereafter, the club will turn their sights to Austria and Vienna with long term aspirations to purchase in Rome, Barcelona, Cannes, and others.

Similar to the structure used by the United States Equity Estates, Rocksure Property plans to ultimately liquidate their real estate assets and distribute proceeds to members.

Once dominated exclusively by non-equity clubs, models similar to Rocksure Property and Equity Estates have gained momentum in recent years. If you are considering destination club membership and would like to compare the various business models used throughout the sector, request a free copy of our Destination Club Guide.