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Expensive
'Fun Assets' fractional owned |
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The sensible
and fun way to own |
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Turn-key
convenience of use |
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An exclusive
service for CMR Executive Members |
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Australia |
USA |
| NZ |
UK |
| Far East |
Europe |
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This unique programme is
only available to CMR members (all categories), and allows
the fractional ownership of relatively expensive 'fun assets'.
The programme covers all assets that are normally acquired
for fun or recreational use; yachts, aeroplanes, vacation
property, racehorses, etc.
The CMR Scheme allows members
to have the partial ownership and shared use of 'fun assets',
in a way that will give syndicate members probably all the
time they would want,
but for a fraction of the normal cost involved. Each
syndicate will be operated on a proper legal basis, with fair
access for all syndicate members. Past experience has shown
that access to shared assets is not usually a problem, particularly
after the first flush of enthusiasm has passed! Apart
from the significant cost savings, syndication in this way
can also bring a new circle of friends. It can also
allow the part ownership of several ‘fun assets’ rather than
just one – for the same cost! This is not time-share - members are not buying specific time slots.
It is joint ownership, with open Internet booking facilities,
and with rules to ensure the syndicate operates to
everyone's benefit.
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| CMR provides a turn-key syndication
service, which includes the following elements: |
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Facilitating
the formation of the syndicate through the CMR Website |
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Providing standard legal agreements. |
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Facilitating the ownership
vehicle (usually a Guernsey-based Trust), although
costs involved are for the syndicate's account. |
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Arranging the asset’s purchase
as finally agreed by the syndicate after its formation. |
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Arranging for routine maintenance
and services as in each asset's specification. |
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Managing the syndicate’s financial
affairs - although of course, financial responsibility
rests with the syndicate's members. |
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Providing an Internet-based
booking system specific for each asset. |
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Providing a selling facility
for syndicate members wishing to sell their share. |
| CMR's
fees in respect of the Syndication Service are: |
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A commission
of 10% of the asset's purchase price. It is anticipated
that some or all of this will come from discounts negotiated
by CMR with the asset's manufacturer or supplier.
It should be noted that very often with syndicates,
the sum market value of the syndicate shares exceeds
the capital value of the asset itself by a
considerable margin. |
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A commission of 20% on the
annual/ monthly costs of the asset's maintenance/ service
facilities. |
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A commission of 10% on the
sale value for a syndicate share sold. This will
include CMR's work in handling the transfer internally,
but not any legal costs involved. |
| How the
Scheme Works: |
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The CMR Website
lists all current syndication opportunities.
Each listing will show a sample photo of the asset
and the details; its planned location; how many shares
it will be divided into; the capital cost of each share;
the anticipated annual cost allocation to each share.
Also shown will be the syndicate agreement covering
that asset (click here for sample agreement). |
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Those CMR members who are
seriously interested in acquiring a share can register
that interest on the members-only section of the website.
In doing so, they will 'sign' their agreement to the
syndicate rules (click here to review now). When the
required number of members have registered, there will
be a quick 'virtual' meeting by email to check that
all registered members are prepared to now proceed
with the purchase. If so, each member will pay
a non-returnable deposit of $1500 or £1000 to indicate
seriousness - if a member withdraws after that point,
the deposit is forfeit - otherwise it will be credited
to that member's account. |
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If desired by the syndicate
members, there will be a physical meeting called allowing
members to meet, and to discuss the impending purchase.
There will be an opportunity to modify the purchase
specification, if all agree (if not, the originally
stated specification holds). |
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For convenience, usually each
asset will be owned by a properly constituted Trust
(normally based in Guernsey, UK Channel Islands), but
this can be changed if all parties wish. Payment
of the capital share will now be made to the Trust
and the asset purchased. Each syndicate member
will have trust documentation proving ownership to
them or persons they designate. Each syndicate
member shall also establish an automatic monthly payment
for the agreed maintenance fees. |
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CMR provides a private Internet
Booking Service for each asset, which allows each member
to readily make bookings subject to the syndicate's
rules. |
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CMR will normally contract
with local maintenance/ service providers as appropriate
with the intention of providing the syndicate owners
with a 'turn-key' service, but the syndicate can modify
this if all the members wish. |
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