Kent, United Kingdom–UK-based start-up Fractal Homes, an organization that offers fractional home ownership of properties across Europe, has recently undergone a make-over and announced its new business model after receiving $30 million seed funding from White Star Capital.
According to a news release, the organization will offer residents of GCC countries seeking second homes the option of partial ownership of luxury properties where they can schedule stays and avail of hotel-style services (through the Fractal mobile application).
“We make second home ownership more accessible by splitting each home into eight equal parts, reducing both the initial capital outlay required to buy the home and also the often-overlooked high cost of running a property,” said Labib Kaddoura, co-founder of Fractal in the release, adding that Fractal fully manages the property which includes regular cleaning, and maintenance all year-round.
“Buying a second home for just a few weeks of usage per year in addition to all the maintenance and operational hassles that come with it makes little sense to us,” added Kaddoura, explaining it to be the reason for the company’s creation.
Fractal Homes currently offers apartments in prime locations in West London, including Knightsbridge, Notting Hill, Chelsea, Kensington, and Mayfair (view website), but plans to expand across Europe by next year.
Presently the costs of partial ownership can range from £125,000 to £275,000, depending on the size and location of the property.
The company additionally offers co-owners of properties the option to store their personal belongings on-site to “feel right at home” during their stay.
“We were immediately impressed by the caliber of the Fractal team, who has identified a key pain point in home ownership that can be solved through the combination of technology and an innovative approach,” said Eric Martineau-Fortin, CEO and Managing Partner at White Star Capital in the release.
As GCC residents are the primary market, the company plans to open up a branch in Abu Dhabi, UAE, by next year.
Read the full press release here.
