South Africa's first and only destination club, Dream Circle Destination Club's Managing Director Ian Beauchamp looked to his American contemporaries as he plotted out the club's model. "Destination clubs are well established in the United States where their members enjoy getaways to upmarket marins, beaches and golf estates in the USA, the Caribbean and Pacific Islands. Our South African destinations are amongst the finest in the world, offering quality and variety and thus representing fertile opportunity for introducing the destination club concept."
Planning to only operate for 12 years, the club will liquidate their real estate holdings and repay outstanding membership deposits and distribute a portion of the club's profits to the club's exclusive membership. Targeting 25 homes during this time period, the club plans to have a three tiered sales structure, allowing the club's first 55 members to enjoy preferential benefits, followed by second and third sales programs of 55 and 58 members respectively for a grand total of 168 members. The initial membership deposit was $340,000 and annual dues of $15,000, providing each member 32 nights of annual usage.
Dream Circle has extensive support in various critical areas. A division of Mirage Leisure and Development, the club also has attracted the interest of Standard Bank who took an equity stake in the club. Webber-Wentzel is responsible for the club's legal needs and Price Waterhouse does the club's audits.
The American based club that Dream Circle Destinations may most closely mirror is Equity Estates, an Atlanta based destination club who will liquidate the club's real estate assets in 2021. A relatively new club, Equity Estates has seen great success since their launch, providing Dream Circle Destinations and other equity destination clubs with high aspirations as the club moves forward.
By the end of 2008, the club had reached 25 members, nearly half way through the club's initial sales phase. According to Beauchamp, the vast majority of the club's members were from Johannesburg, Pretoria, and Cape Town. Dream Circle continues to offer their Founding Membership to interested parties, with price increases following the conclusion of the Founders phase.
MEMBERSHIP PLANS
Limited to just 168 owners, member/investors of Dream Circle Destinations are allowed 32 nights of travel annually.
The club plans to build in three different membership phases. Based out of South Africa, the club uses the South African Rand (ZAR) as their currency.
Dream Circle's first phase will require a ZAR$2.2 million capital contribution. Annual dues for the club will be ZAR$96,900 per year. The club is currently in this Founding offer phase and will discontinue once the club reaches 55 members. At that point, the club will move into their second and third phases, each requiring a higher capital contribution to join.
There are many benefits associated with joining a new destination club.
MEMBERSHIP PRICING
Based out of South Africa, Dream Circle Destinations uses the South African Rand (ZAR) as their currency. Utilizing an equity based model, the club's eventual 168 members are also owners and will be repaid their capital contribution and a portion of any proceeds once the club liquidates its real estate holdings.
Still in its introductory phase, Dream Circle requires a ZAR$2.2 million capital contribution to join the club. Once the club reaches 55 members, the capital contribution required to join the club will rise. The club will offer 55 memberships in their second phase and a final 58 memberships thereafter, each with increased costs.