Brick By Brick

Abode2 talks to Black Brick and Flyway about how they have combined to make luxury London second home ownership an attractive investment goal

There is a hot newcomer for luxury property proprietorship in London – fractional ownership. For those looking to purchase a second home, to enable practical living and working solutions to our more splintered way of working in the post-pandemic world, fractional ownership is the clear solution.

Fractional ownership has become common practice across Europe, North and South America, and is now making waves in our Capital. But how does it work? The business model for fractional ownership varies from firm to firm, but the basic idea is that each property is owned by a selection of shareholders, often frequent travellers tired of endless hotel stays, who come to work and play in the City from time to time. The number of shareholders is property dependent and can range anywhere from two to 10, with each shareholder entitled to utilise the property for several weeks per year.

Black Brick Property Solutions, who has been securing luxury property in Prime Central London for over 15 years, has begun working with international start-up Flyway, to build a portfolio of more than a dozen luxury properties in the heart of the Capital. Following the purchases, Flyway will then sell shares in the new apartments on a ‘fractional’ basis. “It is”, according to Flyway, “A new smart way to own a second home at a fraction of the cost.”

The question on everyone’s lips however is, how does this differ from the somewhat discredited timeshare setup? Where fractional ownership differs is that the shareholders own, and can sell, their shares in the property when they wish. And, most importantly when making an investment, if the capital value of the property has increased in the interim, they will make a profit.

"We live in times where democratising home ownership, when prices of homes are constantly going up, is becoming the main way to own an amazing second home”, comments Flyway’s CEO Nikos Drandakis. “At Flyway, we believe that technology can once again disrupt the way an industry evolves and we are on our way to doing that, starting from London!”

Flyway is led by established entrepreneur Mr Drandakis, whose previous successes include Latin America’s Taxibeat. When acquired by Daimler in 2017, the ride share firm saw $200m in annual revenues, and employed 850 staff members.

In a thrilling beginning to 2022, the first deals have already been struck with Black Brick’s help, and include a luxury new build overlooking Hyde Park, as well as a flat just off Hanover Square – a key location in the heart of Mayfair.

“We have been retained by Flyway to help them build a portfolio,” says Dell, “With their intention to purchase approximately 15 properties this year, with prices ranging from £2 to £5 million.”

Nikos continues, “We are delighted to be working alongside Black Brick who have been instrumental in helping us to navigate the market and identify key properties in some of London’s best locations".

Flyway is not the only company interested in the London market. Several other firms, including an operator already active in the European and American markets, are thought to be considering an expansion into London.

“These companies are here, and they are very active,” said Dell. “They seem to be springing up everywhere. It will be interesting to see if it succeeds in attracting buyers who feel this format will make second home ownership affordable, or who don’t want the hassle of managing and maintaining a second home in London.”