“The Gridlock Economy” meets “The Sharing Economy”
Our business thesis, in short, is to recover and build value by investing into, restructuring and repositioning assets that are impaired by badly conceived legal structures, such as legacy timeshare regimes. We will invest in such properties and work together with boards and owners to restructure the property for the benefit of the owners.
For example, the so-called "legacy timeshares" normally sell well below their underlying real estate value. In fact, although timeshare owners technically co-own valuable real estate, many owners pay to get rid of their "property." The time has come to change that. The answer to “why now” is the technology that is enabling the Sharing Economy.
Some of the “Vacation Ownership” developers are applying the best of their timeshare marketing skills to sell investors on the idea that timeshares are “at the forefront of the sharing economy.” However, our view is… "well, not exactly." In an article, “The Rise of The Sharing Economy,” The Economist described it well. The Sharing Economy is specifically not about timeshares, but about the technology enabling previously impossible transactions and pooling of resources. Sharing in the name is not about the “Sharing Economy.” In fact, legacy timeshares, which are the primary targets of our business, are best attributed to what economists call the “Gridlock Economy.” In the Gridlock Economy (otherwise known as “Tragedy of the Anti-commons”), too many fragmented owners of a single asset wreck markets, break down cooperation and destroy value. This breakdown of markets and cooperation is the fundamental reason why today the aggregate values of legacy timeshare resorts are as little as ten cents on the dollar of the underlying net asset value. We are out to recover some of that difference.
If you are a qualified investor looking for special opportunities or a manager or a director looking to recover the value of your property, please fill out our contact form. We would love to hear from you.
Lemonjuice Capital Partners