SEEFF FRACTIONAL OWNERSHIP

History

Current scope

Costing consideration – Feasibility

Concept & Processes

What the market is asking for

Re-sale market and ROI

Exchange Platforms

Challenges

HISTORY

Fractional in ‘03 and Converted to a Seeff

license in

June 2005 – Seeff Fractional Ownership.

The power of the brand.

Success to date.

Decline during meltdown.

Product offering

CURRENT SCOPE

South African regions where fractional sales are predominant:

Exclusive Golf Estates – Why… they offer freedom for children, the hotel & spa’s for all, the golf for the family & the tranquillity for everyone

Golfers only – 40%

KZN, Western Cape and Wildlife Estates currently highest demand

Garden route also popular.

Cape Town and KZN Apartment blocks

Project has to conform to a legal model

The project needs to be registered with VOASA

Full disclosure

True value needs to be considered to maximize R.O.I. & credibility of the industry

In SA a 100% return in 5 years is expected in property. Our shareholders expect the same and better

Re-sales have generated the credibility

COSTING CONSIDERATION - FEASIBILITY

Once we have established the demand in a particular resort/destination we generally purchase a Villa/Lodge/apartment or land and develop. Below proving our expertise in this field

Design….and there are various factors taken into account.

Brief & manage architects & planning phase. Develop & facilitate in project management. Interior design. Engineers & Landscaping. Finance, accounting & collections processes during

build period.

CONCEPT & START-UP PROCESS

Concept - continued

Register a company, then on - sell to 13/26 investors.

We collect all payments & once all done & suppliers paid, we hand the

Villa over to its shareholders.

Manage snags.

Manage Villa on shareholders behalf to create hassle-free holidays

and further facilitate rentals, exchanges, swaps & re-sales.

WHAT THE MARKET IS ASKING FOR

Golf estates Villa’s

Wildlife Estate Lodges

Apartments in sought-after destinations

Predominant sales before recession, during and after

The SFO Business Case You cannot over-value a Fractional property Unless the feasibility is executed with utmost care, the

business case will fail

The market needs to be assured that capital growth remains relevant

Re-sales creates credibility to the industry Last 20 statistics End user finance will play a role in future Rentals a large motivator and instills credibility Management company essential

RE-SALES & ROI

Roster system does not always suit school - going families

Interest remains in the appreciating asset, but the shareholder can enjoy the product globally

Gives investors options – in SA & globally Maximising the experience Exchange platform options

EXCHANGE PLATFORM

WEAKNESSES IN CURRENT FRACTIONAL MODEL

• Only ONE - End - user finance