The Luxury Fractional Guide Blog

Find the latest information on fractional ownership.

Overview of Equity Estates Fund III

If you would like a unique one-of-kind investment that provides you with the opportunity to stay in some of the most lavish locations in the world, then Equity Estates may be just the ticket!

Equity Estates are regarded as one of the premier luxury residence funds in the world, and it continues to add vacation homes to its existing portfolio.

What is Equity Estates

Equity Estates is a private real estate fund, which allows its investors to enjoy luxury residences in some of the most exotic locations while benefiting from a diverse property portfolio.

All members maintain an equity interest in the expansive range of residences. Currently, Equity Estates have more than 70 vacation homes in 30 countries across the globe. The residences range from city pads, mountain retreats, to beachfront mansions.

Investors or members have the benefit of not paying for their vacation accommodation, while at the same time participating in the appreciation of the investment fund.

More people are now turning to these type of investment funds, rather than the hassle of purchasing their own holiday home. With Equity Estates, you get an allotted number of nights to stay at one of the locations. The amount of nights you can stay depends on the membership level you bought in for.

How Equity Estates Works

There are three different membership levels, Advantage, Full, and Executive. Each membership level will provide either 45, 30 or 15 nights a year. If you only want to use one night as part of your membership, that is authorized although you cannot stay more than 18 consecutive nights.

The initial contributions range from around $250,000 to almost $700,000. It is worth noting that there are annual fees as well.

Currently, there are homes stretched across the world including New York, Mexico, The Caribbean, Germany, and Italy.

In 2021 Equity Estates plans to sell all its current portfolio from fund 1 with 80% of the appreciation being returned to members.

As well as the accommodation, members can benefit from a 5-star concierge service and onsite support provided by Equity Estates.

The concierge service is available to help with trip planning, transportation, grocery shopping and excursions.

The Next Round of Funding.

The latest fund is fund 3, which is now open for investors. For the fund, they are hoping to raise $40 million in capital to increase its current portfolio. Each residence that is purchased by the fund will be valued between $2 to $5 million. Much like the existing properties they will be 2-7-bedroom vacation homes in city, beach, mountain and leisure locations.

This fund plans to liquidate all its assets in 2029. Fund 1 and 2 fully sold out once they became available and fund 3 is expected to be no different. Fund 2 will liquidate its assets in 2025

If you want to join a fund that has already been sold out, the only way to do so, is if a member decides to leave and sell their membership. The number of investors currently stands at around 230.

Equity Estates recommends the fund is not designed for short-term investing or “quick flips.”

 

Leave a Reply

Your email address will not be published. Required fields are marked *