Private co-ownership in Provence

PRIVATE CO-OWNERSHIP IN PROVENCE

09/2009 Luxury vacation home at a fraction of the cost

PRESENTED BY FRANCE FRACTIONAL INVEST

Private co-ownership is the opportunity to develop your own fractional ownership property – without using a developer. This is a property concept. We provide every element of the second (or third) home you have always dreamed of owning, in one of the world's most fabulous regions, without the months or years of effort it would take to create it yourself, at a fraction of the cost of owning it in its entirety. We take on the developer’s role on your behalf: we assemble a group of 8 like-minded co-owners, find the property, renovate it and organize everything until you can move in. We also hire your staff for you, and run the house – when you are away, and even when you’re there. You are in control.

Contact: Pierre Guillery +33 (0)6 8434 8992 Mail: [email protected]

The information contained herein does not constitute a distribution, an offer to sell or the solicitation of an offer to buy any securities in any jurisdiction in which such distribution or offer is not authorized. In particular, the information herein is not for distribution and does not constitute an offer to sell or the solicitation of any offer to buy any securities in the United States of America or to or for the benefit of any US Person as such term is defined under the United States Securities Act of 1933, as amended.

© Pierre Guillery/FFI 09/2009

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Takeaway

If you have been considering buying a house in the South of France for a long time, but haven’t transformed the dream into reality yet – this may be what you are looking for.

IN THIS DOCUMENT

Understand the concept Page 3

Discover the region Page 8

Find out about the property Page 11

Review the financials Page 14

Follow the process Page 16

THE CONCEPT You all know about fractional ownership – often described as “luxury second home without the hassle.” Private co-ownership is the opportunity to develop your own fractional ownership property – without using a developer.

This is a property concept. We take on the developer’s role for you: we assemble a group of 8 like-minded co-owners, find the property, renovate it and organize everything until you can move in. We also hire your staff for you, and run the house – when you are away, and even when you’re there.

Building type: 18th or 19th century “mas”;

Location: Uzège, in Provence;

Size: 250/350 m² (2,690/3,800 sq.ft);

Rooms: 12/15, incl. 4 bedrooms;

Amenities: lots of light, splendid views, fireplace, balcony, patio, secured storage for personal belongings, all the luxurious comforts;

Co-owners: 8;

Cost: 165,000€ ($235,600) each;

Usage: 6 weeks (1 ½ month) per year;

Upkeep fee: 8,400€ ($11,900) per year.

ABOUT YOU We believe that this offer is most ideally suited for 45/65 yr-old Francophile professionals or entrepreneurs, financially secure, with a taste for good service, possibly already owner of a second home in North America, and who have long considered buying a property in Provence – but have never fulfilled their ambition.

UZÈGE, PROVENCE Often called "little Tuscany" for its vineyards separated by dark cypresses, village squares, country mansions, culture, and its Renaissance buildings, the Uzège is a preserved corner of western Europe that has somehow escaped the notice of the world's tourist hordes. Here, one can live in a charming village with stone houses, surrounded by vineyards and gentle hills, and be an hour from the beaches of the Mediterranean, skiing (in winter) or hill walking and canoeing (in summer).

Rich in architecture and religious history, Uzès could be visited over and over again and never get old. Besides one of the most beautiful markets in the South of France, there are numerous restaurants, wine bars and outdoor cafés to discover. Uzès lives year round, buzzing with tourists and locals, including many ex-pat English and Americans. The small town is the vision people have of the South of France – and you could be living it.

If you love Provence, we promise you will love Uzès and everything it has to offer.

Illustrative purpose


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ABOUT THE PROPERTY The first property identified for this concept is the Mas André in Gattigues.

The Mas André is a South facing authentic (early 19th century) old stone farmhouse located in Aigaliers, 8 km from Uzès, offering 300 m² (3,160 sq.ft) of living area, with 4 bedrooms (2 ensuite, including the largest the ground floor), family room, large kitchen, summer/dining room, a staff apartment and small outbuildings, sitting on a 6,400 m² (1.6 acre) walled garden with banks of olive trees (approx. 80), green oaks and rose bushes.

FRANCE FRACTIONAL INVEST This concept is brought to you by France Fractional Invest (FFI). Using our real estate experience and our local contacts, we integrate the best of French design with the comforts and conveniences that owners expect. We provide every element of the second or third home our customers have always dreamed of owning, in one of the world's most fabulous regions, without the months of effort it would take to create it themselves, at a fraction of the cost of owning it themselves.

Led by Pierre Guillery, a US-educated (BSBA, MBA) fully bilingual 43-year old consultant and entrepreneur, FFI is a real estate consultancy enabling its customers to make fractional projects in France happen, and acting on their behalf in a number of capacities, including: property scout, administrative handler, and project coordinator. We can also set up and manage the service firm you will require, including all personnel, accounting and tax-related issues.

For more information, visit: www.francefractionalinvest.com

Mas André, South facing courtyard

25 km 25 miles


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The concept You have been considering buying a house in the South of France for a long time. You love Provence, its olive oil, warm weather and culture, and the fact that it is just a superfast train ride away from Paris or Barcelona. You have travelled there many times – and you really want to go back. Ideally, you would happily live in Provence for a month of two each year when you retire. But you haven’t transformed the dream into reality yet: of course, there is the cost – but also the complication handling by yourself the purchase and day-to-day management (as well as possible renovation) of a house in a country a day’s travel away from home – and where they all speak French. Read on: this may be what you are looking for.

PRIVATE CO-OWNERSHIP

Let’s say you decide tobuy your vacation home inProvence.

To find the perfectproperty, you startsearching the web andmaking calls to estateagents (some will speakEnglish, but most won’t).You need to organize

inspection visits, to have surveys done for the properties you are interested in – before any purchase. You also need to check that there are no plans to build other properties, office or agricultural buildings nearby. The actual contract process is handled by a “notaire” (public notary), as they are the only persons permitted by law to perform conveyancing in France. The whole process takes from 4 to 8 months – depending on how much time you have to handle the search, and how quickly you find the house of your dreams.

If you plan some renovations, you need to hire the contractors and manage them to ensure that everything goes as planned. A simple house “refreshment”, with the addition of a swimming pool, will take a minimum of a month to complete. Unless you are planning to be there while the renovation work is going on and you speak fluent French, you should recruit a knowledgeable person to oversee the project. Finally, you need to organize the year-round management of your home: find a gardener, a maid (when you visit) and a plumber (in case of emergencies – whether you are around or not).

The old fashioned way In September 2009, the cost of buying a quality renovated farmhouse in Provence (a “mas”) with a swimming pool, 250 m² of living area and a landscaped garden of half an acre is between 2,500€/m² ($330/sq.ft) in Uzège and 4,400€/m² ($581/sq.ft) in the Lubéron region – from 625,000€ ($889,000) to 1.1m€ ($1.56m). The annual cost of running such a property starts at 8,000€ ($11,400), including personnel, rates, water, replacement costs.

There is an alternative You all know about fractional ownership1 – often described as “luxury second home without the hassle.” Private co-ownership is the opportunity to develop your own fractional ownership property – without using a developer.

Most fractional property opportunities are properties that have been purchased, renovated and decorated by one developer who creates the legal structure and documents, then offers the fractional interests for sale. Although they make a lot a financial sense, these arrangements

1 Each owner is deeded a fractional real estate interest of a specific residence (condo or otherwise). In addition to the cost of their ownership interest (usually between $100,000 and $600,000), the owner also pays annual maintenance costs, based proportionately on ownership (usually 2% and 5% of purchase price). All the other related concerns of second home ownership, including maintenance and furnishing replacements, are left to the property management company. This type of purchase is for usage periods ranging from 4 to 13 weeks per year on the property, with the average high-end fractional stay falling in the 1/7 to 1/8 range.



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are seldom organized by the users themselves – usually because of the complicated nature of the work involved.

But we believe that you may want to feel like the property is really yours – starting from scratch. So we offer to take the burden away from you: we will “do it all” on your behalf, under your control. We will help assemble a group of 8 like-minded co-owners, find the property, renovate it and organize everything until you can move in. We will also hire your staff for you, and run the house on your behalf – when you are away, and even when you’re there.

HOW THIS WORKS We are offering a property concept2: to search, find, renovate, furnish, landscape a property to be shared between a small group of co-owners:

Building type: 18th or 19th century “mas”;

Location: Uzège, in Provence;

Size: 250/350 m² (2,690/3,800 sq.ft);

Rooms: 12/15, incl. 4 bedrooms;

Amenities: lots of light, splendid views, fireplace, balcony, patio, secured storage for personal belongings, all top quality kitchen and bath fixtures, all the luxurious comforts;

Number of co-owners: 8;

Cost: 165,000€ ($235,600) each;

Usage: 6 weeks (1 ½ month) per year;

Upkeep fee: 8,400€ ($11,900) per year.

2 This concept has been pioneered by Adrian Leeds, whom you should contact if you wish to design your own fractional apartment in Paris (www.adrianleeds.com).

Step-by-step

Purchase pool

It all starts with the creation of a group of prospective co-owners, the “purchase pool”. Purchase pool members may or may not know each other prior to the launch of the project3 – if you don’t have friends interested in the project, we will find prospective co-owners for you4.

Each prospective co-owner, as member of the purchase pool, must be willing to invest the full amount of one of 8 shares to be held in an escrow account to fund the property search (when applicable), purchase and renovation5.

Discovery visit

Prior to their committing to the purchase pool, we can organize private discovery visits6 for prospective co-owners. You simply make your travel arrangements to get to Paris, and we take care of everything else: hotel and transportations, restaurants, car rentals, visits – both in Paris, and in Provence. We will show you the region, and a few houses, and introduce our local partners. After this week-long experience, you should be ready to make the decision to proceed – or not.

Property search

For this project, the property has been identified in advance. In other cases, the search will commence upon commitment

in writing of all pool members, and receipt of deposit funds (10% of share cost) from all members of the purchase pool with an agreed

3 Contrary to what you might think, groups of complete strangers who come together through such a packaged offering are often more successful at co-owning and managing the shared property than groups of friends or family members! 4 However, recruiting pool members yourself will help you reduce the cost of your own share. See “Process” for details. 5 See section “Process” for details. 6 All inclusive cost: from 3,500€ ($4,990) for one person, excluding USA/France round trip.




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upon allowance for a minimum of 90 days to locate the property7.

Upon location of a property that fits the specified parameters, a memo with photos and description of the property (already incorporated in this document – “The Property”) will be sent to all members who may decide at that time to approve or decline the property in a timely manner – within 48 hours of receipt of the memo. The purchase process is enabled to proceed when the group which is able to approve the found property, with a combined total of 1.344m€.

Purchase and renovation

Under the control of their respective lawyers, members of the purchase pool will provide proxy to France Fractional Invest to sign notarial documents on their behalf (“Promesse de Vente” and “Acte de Vente”). Allow 3 to 4 months to completion.

Three decor concepts that fit within the renovation budget will be presented to the purchase pool for voting an one will be

executed by the interior architect and construction team. Any choices made by the purchase pool outside the framework of the budget will be charged over and above the initial fees. Allow 4 to 6 months to completion.

Members of the purchase pool may choose to

appoint one spokesperson for the purchase pool to make day-to-day decisions and act as a "liaison" between all members of the purchase pool.

7 See section “Process” for details.

WHY THIS MAKES SENSE

A fraction of the price The share cost is 165,000€ – a big difference from the whole ownership price of around €650,000 for a comparable property with a similar location and amenities – and with no management or concierge services. Why pay for year-round use of a vacation home you’ll only use a few weeks of the year? Also, you avoid the time, effort and difficulty of outfitting the property, creating the legal structure and assembling the owner group.

No hassles It is bad enough when you need to do renovations on your property back home... imagine what it must be like to supervise a job long-distance, in a fairly difficult work environment such as France. Then there's the management aspect: you need the assurance that you will not have to worry about mowing the lawn or paying the taxes.

Every time you come to Provence, you know just where you’re going to stay – you never have to call another hotel or rental agency again. When you arrive we arrange for airport pickup, the mas is sparkling clean, and your fridge is stocked with groceries. During your stay, we provide complete concierge services, handling restaurant reservations, golf tee times, and theatre tickets. When you leave, you don't have to worry about cleaning, or about paying bills, or fixing a leak. You just pack and leave. We take care of the rest.

No reason to rent A typical vacation home owner has the choice between leaving the property vacant when it is not being used, or renting it out to cover some running costs – which (as anyone who has been involved in vacation rental knows) has significant downsides. As a co-owner, the lower cost of buying into the property means that you won’t even have to consider this option.



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KEY POINTS

Legal structure8 Each co-owner is a shareholder in an US-based company, which in turn holds all the shares in a French real estate entity, called a société civile immobilière, or SCI. This double company structure is set up in order to ensure the simplest and most transparent ownership structure for the property, as well as to make shares easily transferable without disrupting the underlying ownership structure of the property.

This ownership structure means that each co-owner avoids the tax filing and other formalities

that usually come along with owning property in France. All French taxes and legal requirements are paid by the SCI, a process entirely managed on behalf of the owners so that they have no confusing foreign documents or responsibilities to manage. Each owner will receive a concise tax statement for their portion of income and expenses, which you can include in your personal income tax statements9.

Usage As the most important element of a vacation home sharing arrangement is the usage structure, the property has a permanent usage structure so that each co-owner can be certain of his/her usage rights well in advance to allow plenty of time for planning.

8 The customized legal structure will be designed by Andrew Sirkin, the recognized real estate co-ownership legal expert, both in France and in the United-States (www.andysirkin.com). 9 We strongly suggest that each prospective co-owner obtains individual tax advice on their own, to understand the possible tax benefits or liabilities in light of their personal tax situation and planned usage of the property.

Specifically, each co-owner will have a fixed two-week block of usage each year, with the other 2 two-week blocks organized on a rotating basis, with a system in place to enable co-owners to easily “swap periods” at will.

Also, being part of the co-owners association’s bylaws, the usage system will be “modifiable” by the co-owners collectively if/when the choose.

Management and upkeep The property will be managed by a staff of two living on the premises – with gardening, maintenance and hosting responsibilities. This “duo” will be expected to be bilingual French/English, with some US/international experience in order to facilitate the cultural interaction with the North American co-owners. We will ourselves manage the staff and handle the overall financial management of the property.

At the end of each year, we will present an estimate of all of the expenses for the following year, and determine the amount that will be needed from each co-owner to pay the bills. Co-owners will be required to approve the accounts and the projections. The anticipated expenses should include some reserves for long-term recurring expenses such as painting, roofing, system upkeep, and furniture and houseware replacement.

The amount required from each co-owner will be divided into equal monthly or quarterly payments, and each owner will be required to contribute his/her payment on schedule. In this way, each co-owner knows with a fairly high degree of precision what will be expected of him/her in the coming year.



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SPECIAL TREATS

Your own olive oil Make your own olive oil from the 80 olive trees of the property10 – with the help of a local farmer and the cooperative. Each year in November, you can assist in the harvest and the following spring, you can send “virgin olive oil” bottles to your friends and family!

Cookery workshops

Learn French cuisine, the “provençal way” with truffles - in your own kitchen! Each year or on demand we will organize private cookery sessions for

you and your guests. Seasonally fresh ingredients, your own Chef teacher, - you taste all the dishes at the end of the session. Also possible: excursions to the neighboring Cotes du Rhône wines cellars and wine tastings.

10 At the Mas André, over 300 liters of oil can be expected from the 80 trees producing 20 kg each.


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Discover Uzège THE “OTHER” PROVENCE Often called "little Tuscany" for its vineyards separated by dark cypresses, village squares, country mansions, culture, and its Renaissance buildings, the Uzège (350 sq.miles around Uzès, just West of the Avignon and the Rhone, and North of Nîmes) is a preserved corner of western Europe that has somehow escaped the notice of the world's tourist hordes. Here, one can live in a beautiful charming village with stone houses, surrounded by vineyards and gentle hills, and be an hour from the beaches of the Mediterranean in the south, an hour from skiing (in winter) or hill walking and canoeing (in summer) in the north, and less than an hour from Nîmes, Avignon and Montpellier theatre, cinema, restaurants and life.

At the same time in Provence and in Languedoc, the Uzège region has a number of terroirs in which wonderful, distinctive goods such as olives, apricots, wine, cherries, peaches and truffles are produced: gourmet treasures that you can find in the fourteen surrounding villages, which in recent years have been adopted by Parisians. Because it’s the done thing to be seen in Uzès! In summer, this New Lubéron takes on a somewhat foreign accent: an invigorating breath of fresh air that plays its part in the incomparable charm of this city of the Dukes.

A jewel of a town

Centuries old and completely restored, Uzès (pop. 8,000) has retained an architectural heritage that spreads over a landscape dotted with villages and planted with fruit trees, vines and truffle oaks. It is a jewel of a town with

one of the best open-air markets in all of Provence, a bit of a time capsule with lofty towers and narrow streets.

There’s a touch of Saint-Rémy de Provence about Uzès, with Latin grace and perhaps an extra touch

of intimacy and authenticity. The same circular boulevard, the same bubbling fountains, and the same unbridled heritage. A walk round Uzès begins with a circuit of the old centre, with its pedestrian streets, “trendy” shops and architectural treasures, such as the Château des Ducs d’Uzès, a private property but open to visitors (owned by De Crussol d’Uzès family who have been living there, on and off, for more than 1,000 years), the Saint-Théodorit Cathedral and the Fenestrelle Tower, with its similarities to the Tower of Pisa, the magnificent private mansions that were homes to the Baron de Castille and Chambon de la Tour, and also the Place aux Herbes, the town’s epicenter, with its lovely arcades and café terraces, where the weekly market that takes place on Saturdays.

The city centre is listed as a protected historical sector (the largest in France). The very powerful Ducs d’Uzès were the first dukes of France and the town was the seat of a diocese until the Revolution and marked by the Wars of Religion, but it was little affected (if at all) by the Industrial Revolution. It has since preserved its glorious heritage.


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GEOGRAPHY, CLIMATE & FOOD

Where the mistral rules Most books on Provence include Uzès, at the Western edge of the first ‘province’ of the Roman Empire outside Italy, in an area where many remains of the Empire can be found (including amphitheatres at Nîmes, the Roman aqueduct known as the Pont du Gard, and numerous roads). However since 1972 France has been divided in 22 regions, with the Gard department (where Uzès can be found) now officially part of Languedoc Roussillon – just outside of the “official" Provence-Alpes-Cotes d’Azur, an administrative region comprising five départements stretching from the Rhone River to the Alps and Italy.

In truth, Provence is largely an intellectual and emotional concept – although it is often perceived as a “single and indivisible phenomenon”, a bucolic land of lavender fields and fortified hilltop villages. Its borders have long been disputed, not least by the Provencaux themselves. Frédéric Mistral, 1904 Nobel Prize winner, the poet who was instrumental in reviving the lost Provencal tongue and who attracted international attention to his cause, said that: “Wherever the mistral rules, you are in Provence” and “It was the Rhone that made Provence in concert with the wind. Right bank, left bank, kingdom, empire, all are Provence.” Because if its borders are drawn by the language, they are also dictated by the prevailing wind: the mistral. The infamous wind, with which the poet shared his name, does not blow on the Riviera (and so excludes this celebrated coastline from Mistral's definition) but blows in the Roman towns of Nîmes and Uzès. What is more, Nîmes was the birthplace of Mistral’s great friend, Alphonse Daudet, who

could not possibly be considered as anything less than a Provencal writer!

250 days of sun The Uzège (also called “Gard Provençal”) boasts a Mediterranean climate, with typical south European vegetation with olive trees, vineyards, palm trees, garrigue scrublands, fig trees, apricot and cherry trees.

It gets 250 to 300 days of sun a year, and temperatures reach 40°C (104° F) in the summer and average lows of 3-5°C (37.4 or 41° F) during the winter. Winter is short, only lasting for a couple of months before temperatures start to warm up again around February. Summer starts around May with midday temperatures in the mid twenties (25°C or 77°F). Warm weather extends through much of October.

Provence cuisine

Every Saturday in Uzès one can enjoy the smell of Provence at the farmers market where local producers offer stands of various products such as olive oil, local wines, goat cheeses, fresh

organic poultries,sausages andmeats from theCévennes, herbsfrom Provence andlavender.

Each January, Uzès welcomes a truffle market where producers and chefs meet to admire and buy the dark diamond. Uzès cuisine carries the flavor of its terroir products, the colors of Languedoc and a distinct Provencal accent, with the truffle as a base in winter, the asparagus in spring and the melon in summer. The olive (and its oil) nevertheless remains one of the mainstays of the meal, whether it's the picholine or the colliasse named after the village near Uzès. The specialties: brouillade de truffes (truffle scramble), friand aux olives et pélardons (pastry with olives and pélardons), numerous dishes with an asparagus base. Nearby is the Côtes-du-Rhone wine region as well as the village of Tavel, famous for its renowned rosé wine.



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Tasting around the vineyards

Vineyards and olive groves have been present on the sunny slopes of the Uzège area for over 2,000 years. Wine making remains a very important activity – with ever improving quality levels. The Vin de Pays Duché d’Uzès label was established in 1989 – and the producers’ syndicate have applied for an international recognized “Appellation d’Origine Controlée (AOC) label.

Uzège borders the part of the Rhône Valley where vineyards predominate and the famous wine of la Côte du Rhône was born. It was shipped from the Port of Roquemaure to faraway destinations. Today it is home of famous AOC wines: Côtes du Rhône, Côtes du Rhône Villages, and the crus of Lirac and Tavel. Wandering across the sun-

drenched landscapes, you will discover vineyard-covered plains, the oppidum of Caesar's camp, as well as numerous Romanesque chapels, medieval sites, and picturesque villages.

Camargue by the sea Administratively, the Uzège is part of the Gard, a most varied département with distinct geographical and cultural differences, which is flatter, marshier, rice is grown, bulls are lies at the northern tip of Languedoc region. In the south are the Grau du Roi, with nearby La Grande Motte, large bustling Mediterranean seaside tourist resorts in the summer, (the largest marina in Europe) and the Camargue wetlands, which spread into the Bouches-du-Rhône in the east. There the

terrain traditionally farmed, and horses have become part of the culture and way of life celebrated there. Inland, at the northern tip of the Gard, are wilder and more remote mountain ranges of the Cévennes.

Languedoc Roussillon is home to one of France's most dynamic cities, Montpellier (pop. 400,000), which has the world's oldest

continuously operating university. The cities of Nîmes and Narbonne wear their long history comfortably while retaining a typically southern, relaxed ambience. Carcassonne combines its workaday lower town with the medieval Cité, and further south is Perpignan, the capital of French Catalonia, one of the most pleasing cities in which to amble about.


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The property THE VILLAGE Aigaliers (population 390) is a typical Uzège village, 8 km (10 mn) away from Uzès, comprising 11 hamlets: Aigaliers, Le Chabian, Domaine de Bruyès, Bourdiguet, Marignac, La Bruyerette, Champ de baumes, Foussargues, Mas Pontier and Gattigues – where the property is located.

The village boasts the ruins of 13th century castle, a restored 11th century church in Gattigues (walking distance from the property) – as well as its own village restaurant, luxury bed & breakfasts11 and easy access to supermarkets (8 mn).

Just an hour from anywhere Although protected from the crowds, Uzège is just an hour's drive from all major transportations.

11 Such as Les sardines aux yeux bleux. Visit their site : www.les-sardines.com

Also, as it's important to be able to escape "to" the city too, the area is within easy reach of Nimes, Avignon, Montpellier and Marseille - with Lyon in the North, and the Spanish border in the South only 3 hours away – via:

• Motorways (Paris/Spain/Italy) in Remoulins (25 mn), or Nîmes (35 mn);

• TGV stations (300kmph/186mph high speed train) in Avignon (45 mn) and Nîmes (50 mn);

• Int’l airports: Nîmes-Arles (45 mn), Montpellier (70mn), Marseille (11/2 hour).

Itineraries

• From New York, Toronto or Los Angeles: fly to France (13 hours from LA, 8 hours from NY) and you land in the early morning. You can either stay for a day in Paris or head South immediately (70 mn by plane, or 21/2 hours by high speed train - recommended) - all in all, a full one day trip;

• From London: the more comfortable option is the high speed train (8 hours from St Pancras), or you can fly into the two main regional airports (3 hours). Alternatively you can drive down, but that's a 12-hour adventure.

THE MAS The Mas André is a South facing authentic (early 19th century) old stone farmhouse offering 300 m² (3,160 sq.ft) of living area, with 4 bedrooms (2 ensuite, including the largest the ground floor), family room, large kitchen, summer/dining room, a staff apartment and small outbuildings, sitting on a 6,400 m² (1.6 acre) walled garden with banks of olive trees (approx. 80), green oaks and rose bushes.

Left uninhabited for the last 15 years, the building is sound but in need of renovation.

25 km 25 miles


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Mas André in Gattigues

The road to Uzès Village restaurant

Disused well

South view

Door to the olive garden In the shade…

South facing courtyard

Gattigues


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…/continued

South facing courtyard

Upstairs terrace

Garden entrance with 80-year old cypress Welcome

Entrance hall

Walled banks and olive trees Vaulted kitchen


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Floor plans

Ground floor

Second floor

Third floor

South elevation


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Financials RATIONALE The per-share cost is computed in the most straight forward manner: total cost of the project, divided by the number of shares. In the same way, like in any homeowners association, the annual maintenance fee is projected as the total annual cost of running the property, divided up by 8 co-owners.

PER SHARE COST Subject to the finalization of the project development plan (which will be undertaken under the co-owners’ control once the purchase pool has been assembled), the proposed share price is 165,000€ ($235,600).

Working assumptions:

Purchase: 530,000€ ($757,000) with additional 7% transaction costs;

Renovation: 850€/m² ($113/sq.ft);

Interior design & furnishing: 550€/m² ($73/sq.ft);

Renovated living area: 265 m²;

Landscaping: 12€/m² ($1.6/sq.ft) for 2,000 m²;

Swimming pool: 20,000€ ($28,600);

Architects fee: 12% of renovation & landscaping costs;

Coordination fee12: 9% of total project cost;

Referral & marketing: 10,000€ ($14,300) per share;

Banking: 3.5% of project cost;

Miscellaneous: 3% of project cost.

All the above assumptions are open to discussion and questioning by prospective co-owners.

12 Fee paid to France Fractional Invest

Cost breakdown:

Property purchase 567,100€

Legal structure set up 17,000€

Renovation 218,800€

Interior design & furnishing 136,800€

Exteriors & landscaping 69,000€

Architects fees 49,600€

Miscellaneous 14,200€

Banking 19,400€

Coordination 93,700€

Other investments 30,000€

Automotive 20,000€

Referral/marketing 80,000€

Total costs 1,315,600€

Cost per 8 shares 164,450€

MAINTENANCE FEE Again, subject to the finalization of the project development plan (which will be undertaken under the co-owners’ control once the purchase pool has been assembled), the annual maintenance fee is 8,400€ ($11,900), payable monthly (700€/$990).

Management & service team

The live-in staff takes care of the mas, looks after the co-owners, and ensures a 100% hassle-free operation.



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The bilingual team is composed of:

• A handyman: to take care of the estate (including small gardening work), meet the co-owners at the airport, and manage the hired help;

• A host/hostess: to welcome the co-owners, look after their needs, and provide concierge services.

Maid and gardening service are outsourced; and the administration is undertaken by FFI on behalf of the co-owners.

Monthly costs working assumptions:

Staff: 1,340€ ($1,920) base salary, with additional 30% social contributions;

House management: 1,350€ ($1,980);

Outdoor management: 500€ ($720);

Management fee: 580€ ($830);

Replacement provision: 500€ ($720);

Automotive: 260€ ($380).

Expenditure breakdown:

Salaries 23,800€

Automotive 3,200€

Rates 6,000€

Materials 22,200€

Other 6,000€

Provision for replacement 6,000€

Total annual expenditures 67,200€

Expenditure per 8 co-owner 8,400€

IMPORTANT NOTE All the cost estimates presented in this document are preliminary. Please note that:

Purchase pool members have the opportunity to review all projections before making a commitment;

We do our utmost to underspend when doing so is possible without detriment to quality.

DISCOVERY VISITS Discovery visits are made-to-measure “inspection trips” designed to help prospective co-owners learn about Uzège, discover the environment, the nearby cities (Avignon, Nîmes), visit a few potential properties, and meet our local partners in Uzès.

Your visit can be customized to your own needs and timeframe. Ideally, the visit lasts 5 days, from a Saturday to a Thursday morning. We organize everything on your behalf (car rentals, 1st-class train tickets, restaurants, hotels, visits)

– at a fully inclusive cost starting from 760€ ($1,090) a day for a party of 2 (3,800€/$5,550).

The only thing you have to organize yourself is the purchase of your round-trip plane ticket home. Just give us the flight number – and we will meet you at the airport!


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Process WHERE TO START? If you think you might be interested in becoming a co-owner, you need to make sure you understand fully the proposed model – and that this model can truly fit your needs.

Confirm this is right for you

First, you should call Pierre Guillery in Paris to ascertain that everything about the concept is clear to you. Ask all the questions that come to your mind. Don’t hesitate; spend all the time that is necessary; call again and ask other questions – or the same13. Next, you should talk to your lawyer to ensure that the proposed legal structure meets your specific circumstances.

COME & VISIT

If you are interested in our concept, you may know the area already. But, as Uzège is bit outside of the “most travelled” roads – you may not. That’s why we suggest you should organize a discovery visit.

During that visit, whether it takes place in January or in June, we guarantee that you will enjoy the smells of the region, discover the city of Uzès and visit the Mas André in Gattigues. But you will also have the opportunity to meet our local partners, including the French “notaire” who will handle the sale, and the US lawyer who will design the legal structure for the property.

13 Get in touch on +33 6 84 34 89 92 – and please don’t forget the time difference!

BECOME A CO-OWNER Once you have made the decision to join the purchase pool, you are ready to make a commitment and run with it – in a in a step-by-step way:

Month 1 – commitment: you ask your lawyer to notify the project notaire of your commitment, and once the paperwork is taken care of, you wire 10% of the share cost to the notaire’ account (the deposit). This money is used to pay for the services required to set up the legal structure, some of the coordination fee, and the organization of the purchase pool (recruitment of 7 additional members);

Month 3 – purchase: once the choice of the property has been confirmed by all 8 co-owners, you approve it and wire 40% of the share cost to the notaire’ account to cover the purchase cost (including legal fees and taxes). Allow 4 months for completion of the purchase;

Month 7 – renovation: following the closing of the purchase, the contractors selected during the previous 2 months (after the design have been approved by the co-owners) move in – and you wire 30% of the share cost to the notaire’ account;

Month 11 – completion: once the renovation works have been completed, you and your co-owners sign off the project, and you wire the remaining 20% of the share cost to the notaire’ account.



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Get-out options Once you have committed to the purchase pool, you have 30 days to change your mind – if you do so, you will be refunded 40% of your deposit.

Also, you may get out of the agreement if the purchase pool has not been finalized 120 days after you have made your commitment – if you do so, you will be refunded 80% of your deposit.

Become the project leader Should you want to choose the usage periods over other co-owners14, you can “choose your priority” by becoming the project leader.

To become the project leader, you need to commit the money required for the purchase of the property – obviously that option is only open before the property has been purchased by the pool.

To illustrate: in the case of Mas André, should you choose to become the pool leader, you would need to put up the full cost of the property (circ. 567,000€) – which you will recoup later, from other co-owners. In essence, by doing so, you would “take control” of the project – and thereby get priority on the usage scheme.

Resale It is important to remember that the proposed concept is not an investment – rather you should treat it as a lifestyle purchase.

However, co-owners may decide collectively to sell the property on the open market. Individual shares (with the attached usage rights and upkeep duties) may be sold too, like any deeded real estate.

14 For example: you want to secure your stay during the full month of July every year.

Bring in friends & save The cost structure includes 10,000€ per co-owner (80,000€ in total) to account for the recruitment of the purchase pool members. The assumption is that this money will be used to compensate referral agents – people who help recruit co-owners.

Obviously if you, as a co-owner, can convince some of your contacts and friends to join the purchase pool, you will be entitled to the same “compensation”. In other words, for each new pool member you bring, the cost of your share will be reduced by the aforementioned 10,000€. Hence, in theory, if you recruit 7 co-owners, you can reduce the cost of your own share to 95,000€.

OUR ROLE Using our local contacts, we integrate the best of French design with the comforts and conveniences that North American owners expect. We then create the legal and management infrastructure for efficient, cost-effective and low-risk fractional ownership.

In short, we try to provide every element of the second or third home our customers have always dreamed of owning, in one of the world's most fabulous regions, without the months or years of effort it would take to create it themselves, at a fraction of the cost of owning it themselves.

Private co-ownership in Provence

Real Estate

Transcript of Private co-ownership in Provence