Fractal launches second home co-ownership model for GCC residents
DUBAI, January 9, 2023
Fractal Homes, a UK-based start-up offering fractional home ownership across Europe’s capital cities, has launched a second home co-ownership model aimed at streamlining purchasing, maintenance, and upkeep of select properties for GCC residents.
To coincide with this announcement, Fractal Homes has launched a new website and is offering four luxury apartments across London as part of the launch promotion.
According to the British start-up, the initial focus has been on prime properties in sought-after destinations in West London - such as Knightsbridge, Notting Hill, Chelsea, Kensington, and Mayfair.
Expansion into other holiday and business destinations, such as Paris and Madrid are planned for next year, said a statement from Fractal Homes.
Labib Kaddoura and Wadih Abou Bechara, the founders of Fractal - who are French and British nationals of Lebanese origin - want to upend conventional second home ownership and make it affordable, accessible, and hassle-free through its managed co-ownership model.
The company offers access to prime real estate at a fraction of its cost; creating a much lower entry point for GCC buyers looking to acquire a luxury second home in Europe.
"Our platform makes it easy for buyers to own and enjoy second homes in Europe’s most desirable cities. We make second home ownership more accessible by splitting each home into eight equal parts, reducing both the initial capital outlay required to buy the home and also the often-overlooked high cost of running a property," explained Kaddoura.
Through the Fractal app, co-owners can manage all aspects of their property, from scheduling stays, and having around-the-clock concierge assistance, to booking private services such as chauffeurs and childcare. Owners also have the option to store personal items in the property, so they feel right at home on arrival, he added.
Down the line, the UK start-up sees the potential in ski resorts as well as Mediterranean beach destinations, it stated.
"Buying a second home for just a few weeks of usage per year in addition to all the maintenance and operational hassles that come with it makes little sense to us," said Kaddoura, "that’s one of the main reasons why we created Fractal."
Bechara said: "Being from, and having lived in, the Middle East, we know first-hand how beneficial a second home is for individuals and families who spend a lot of time traveling between two countries for business, schooling, and leisure."
"The attractiveness of European capitals for GCC buyers, coupled with a good market entry point seeing the recent appreciation in USD, make it a very opportune time for buyers to consider the fractional ownership model,' he added.
With its predominant focus on customers from the region, Fractal will soon be expanding its presence in GCC with a new office likely in Abu Dhabi next year.
Global multi-stage technology investment platform, White Star Capital, has led the equity portion of financing, with additional debt investment from a London-based private credit fund, as part of Fractal Homes’ $30 million seed funding.
"We were immediately impressed by the caliber of the Fractal team, who has identified a key pain point in home ownership that can be solved through the combination of technology and an innovative approach," said Eric Martineau-Fortin, the CEO and Managing Partner at White Star Capital.
"We’re very excited to be with them on this journey to disrupt the property co-ownership model through their scalable solution. Furthermore, the Fractal team’s ambition is strongly aligned with our views of growing connectivities between the GCC region and Europe," he added.-TradeArabia News Service
