Written by Tim Stanley – A NEW FINANCE SCHEME AND ‘SEAMLESS SERVICE’ ATTRACT SKI PROPERTY INVESTORS TO CHAMONIX

An innovative new finance scheme which will enable UK and Irish buyers of ski properties to maximise their investments while enjoying use of their properties at the same time has been introduced in the French Alpine ski resort of Chamonix .

Leading French developer MGM, which is building Le Cristal Blanc, a new residence de tourisme comprising 52 apartments within three chalets alongside the gondola up to L’Aiguille du Midi (3840 m), has introduced its new Leaseback Partnership scheme to attract buyers.

The scheme, first used by MGM at Courchevel last year and expected to be offered with other new developments by the company in future, has greater flexibility than traditional leaseback arrangements in France. It enables a purchaser buying a freehold property to become a shareholder in the overall development.

It means that the owner receives an annual income which is a share of the total profit from rentals earned by the residence, not a fixed rental income, so there is scope for year-on-year increases in the sums received. In addition, the owner can occupy his or her apartment for an unlimited number of weeks during the year. The value of the weeks used by the owner is deducted at the end of the year from his or her share of the profits.

The size of the share is determined by the size of the apartment as a proportion of the total accommodation within the residence.

Unlike many developers who pass responsibility for lettings to third parties, the MGM Group – the biggest property developer in the French Alps with a track record spanning 40 years – has established its own specialist management company enabling it to provide investors with a first-class ‘seamless service’ embracing design, construction, maintenance and lettings.

In the two years since it was established, the company – CGH (Compagnie de Gestion Hoteliere) – already has become one of the leading companies engaged in mountain tourism. Currently it is offering packages which have attracted more than 115 European tour operators whose clients stay in the 3,000 beds it has available in seven residences and one hotel in the French Alps.

The latest new four-star residence in Chamonix will be unusual when it opens for business in December, 2009, because, unlike many in ski resorts which only open for four or five months in the ski season, Le Cristal Blanc will be welcoming owners and guests for 10 months each year.

“Chamonix, which is just one hour by road from Geneva Airport, is more than a winter sports resort,” says Nathalie Turchet of MGM’s UK office in London’s Regent Street. “In summer, when temperatures can reach 30°C, the picturesque town with its cobbled streets and squares attracts thousands of visitors drawn by the wide range of outdoor activities available on the doorstep.”

With four-star facilities which include an indoor pool, fitness suite, gym, sauna, jacuzzi and steam rooms, as well as a beauty centre with a variety of massages and treatments on offer, Le Cristal Blanc is said by MGM to set the style for a new generation of French Alpine holiday homes for the twenty-first century.

The landmark brownfield regeneration development taking shape on the site of a former car park at the entrance to Chamonix represents a break with tradition for MGM.

Its contemporary design, in which the decorative external timberwork of yesteryear has been replaced by clearer lines and glass-fronted balconies, is the brainchild of the prolific Parisian architect Jean-Michel Wilmotte.
In addition to his most notable achievements – the international airport in Seoul, South Korea, and the regeneration of Parisian landmarks like the Avenue de France and some of the city’s top museums – the architect has produced a master-plan for other improvements in Chamonix. They include the modernisation of the Aiguille du Midi gondola, and refurbishment of the Latitudes Hotel and several old-established chalets close to the new MGM residence.

MGM reports high levels of interest and healthy off-plan sales for its new-look homes which, it says, set the standard for future developments in the French Alps where it is not unusual for local authorities, recognising the calibre of MGM’s developments, to invite the company to undertake new schemes.
“Not only is this an accolade of which we are proud but it enables us to proceed with development quickly, providing the new properties which the market demands,” says Nathalie.

The apartments at Le Cristal Blanc
Many of the one- to four-bedroom apartments at Le Cristal Blanc are south-facing with superb mountain views.

When the new high-specification residence is completed in December, 2009, it will feature what Nathalie describes as “contemporary furnishings and decoration, but using traditional materials such as wood and stone.”

Kitchens and bathrooms will be fully-fitted with high quality appliances. Wooden parquet floors and floor tiles will be among finishes.

Every apartment comes with cellar storage and a ski locker as well as one or two underground car parking spaces, depending on the size of the property.

Prices of the properties at Le Cristal Blanc start at euros390,000 including VAT at 19.6 per cent (which is waived under the leaseback partnership) for a one-bedroom apartment with a floor area of 43 sq m.

For more information
MGM French Properties
Kingsland House
122 – 124 Regent Street
London
W1B 5SA
Telephone 0207 4940706 in the UK
Telephone 01 5290152. in the Republic of Ireland
www.mgm-constructeur.com

Media enquiries
Tim Stanley of
Tim Stanley Public Relations

Tel : 01179 625 658