Selling to the super-rich

Editor's note: This item is republished with permission from Global Edge Marketing Ltd. The original post can be viewed here.

Bernard Hornung, an independent property consultant specializing in foreclosed and heavily discounted residential and commercial properties in London for cash-rich buyers, first made a name for himself selling holiday rentals in Sotogrande for the 1997 Ryder Cup, which was hosted by Valderrama. He sold US $6 million rentals in less than a week, and his clients included George Bush Sr. and members of the British Royal Family.

He went on to become sales director at Sotogrande, arguably Spain's most famous luxury resort. At the peak of the boom he was selling over €80 million of property a year. Those days are over. He now focuses his time selling real estate to the super-rich.

Global Edge founder Ashley Rigg caught up with him to ask his advice on how agents & developers should go about selling to this highly sought-after demographic.

Ashley Rigg: Hi Bernard, thanks for taking the time to speak to me today. How's business?

Bernard Hornung: Business is good. We have a small number of high-value clients who trust us implicitly. We are just in the process of finalizing an £80 million sale.

AR: A little out of my price range! How would you define the super-rich as opposed to the merely rich? How rich do you have to be?

BH: There is no precise definition, and wealth is relative your own personal circumstances and what you want to do with your wealth. The important thing about the super-rich is that they are not constrained or limited financially.

AR: If you had to put a number on it?

BH: Over a £100 million I would say. Most people can live without any constraints with wealth in excess of £100 million.

AR: I'd probably get by. Might have to cut down on a few non-essential items though! Joking aside, it seems like a different world to me. How would you say the super-rich differ as overseas property buyers to the average holiday home purchaser?

BH: I do not believe they are that different. People have similar aspirations, but the expectations of rich people are certainly higher. There is a greater need for privacy and security. The over-construction we have seen in many areas of Southern Spain has certainly been a major turn off.

AR: What's the single most important thing about selling to the super-rich?

BH: It's all about unique experiences. When you're selling to people who have everything, you need to remember that a destination is a place worth leaving home for, and that is the challenge.

AR: What are the best of examples of this on the market today?

BH: A good example is La Varzea Polo Club, where I was commercial director. We built the only full facility hire Polo Club in Europe. The logistics of Polo are very complex. A high-goal player needs a stable of around 20 horses. Our facility allowed people to just turn up and play for €300 a day. We provided everything. It was totally unique and people were prepared to travel long distances for this unique experience.

AR: That's a really interesting example. Most developers I'm familiar with targeting the luxury market build a golf course and spa, but this on its own wouldn't be enough to attract the super-rich?

BH: That's true. At La Varzea we actually decided not to build a golf course as the area already boasted a championship course and several professional standard courses. As a developer you need to think about your natural surroundings and how you can utilize this to deliver something that nobody else can.

AR: For example? ...CONTINUED

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