Originally created in 2007, Luxus Vacation Properties was originally conceived for a select group of 18 Founding Partners who weren't satisfied with luxury hotels and the current assortment of destination clubs and residence clubs. Since those humble beginnings, The Luxus Group stated "a bigger picture began to emerge."
Based out of Alberta, Canada, the equity destination club is open to accredited investors based in Canada, specifically in Alberta, British Columbia, and Saskatchewan.
Like other similar equity based clubs, Luxus Vacation Properties has a definitive end date in mind. After 11 years in operation, the club plans to liquidate their real estate holdings, using the proceeds to repay members their original membership fees. Members will also receive 75% of any additional proceeds made from the sale.
Placing a great deal of importance of the financial structure of the club, Luxus allocates over 91% of investor's contributions to real estate and furnishing. Interest parties review financial statements, offering details, risk analysis, and sign a partnership agreement if they elect to join.
What the news desk reported
The fullest picture of Luxus comes from a November 2010 story, Luxus Vacation Properties Looks To Contact Canadian Ultimate Escapes Members. By then the partnership had passed 100 Partners, owned 21 properties outright and was closing in on the 30-property cap at which the fund would be closed. Founder and president Stephen Petasky said the group had grown by nearly 50 percent that year.
Luxus was set up as a Canadian limited liability partnership open only to Canadian investors. About 90 percent of each investment went into a real estate acquisition account and the rest into an operating account. Properties averaged a little over $1 million and were bought for cash, which Petasky said kept annual dues among the lowest in the industry.
The outreach came as Ultimate Escapes went through bankruptcy and Demeure, another Canadian club, was offering its members a way across. Luxus aimed at the smaller group of Canadian members who were not taking Demeure's offer, and said plainly that it would not waive dues or cut prices to win them. Other Canadian clubs in the directory include M Private Residences and The Discovery Club.