M Private Residences Unveils New Membership Exit Strategy

Majority vote passes Sunset Provision to reduce annual fees, provide liquidity
 
CALGARY, Alberta - May 23, 2013 - PRLog -- CALGARY, AB (May 23, 2013) - M Private Residences (http://www.mprivateresidences.com/), a leading equity luxury destination club in Canada since 2005, is pleased to announce that it has passed a Sunset Provision upon a majority vote at its recent AGM.

After a detailed review by the Board of Directors and soliciting shareholder feedback, M Private Residences has officially adopted this model in order to provide a stable platform for growth for the club and to define a clear exit strategy for its membership.

"A Sunset Provision will provide liquidity to our members and at the same time, provide the basis for reduced annual member dues (http://www.mprivateresidences.com/membership/investment/)," said John Beckel, General Manager (http://www.mprivateresidences.com/about/who-we-are/) of M Private Residences.

The Sunset Provision permits the club to liquidate on May 1, 2020. If there are sufficient members who wish to stay in the club, the plan would facilitate continuance of the club for those members for a subsequent 10 year period. For those opting to liquidate, a pro-rata share of the properties would be sold and related debt repaid to fund the redemption. The Sunset Provision also incorporates the required changes to our Unanimous Shareholder Agreement (USA), Articles and Rules.

The advantages of the Sunset Provision include:

Allowing members to stay in the club for the long term or to exit the club in seven (7) years.

Preserving the ability of a member to sell his or her share at any time.

Eliminating the redemption list.

Lowering annual membership dues.

From our members perspective the Sunset Provision accomplishes the following:

Members in for the Long Term

For those members who wish to stay in the club for the long term, the Sunset Provision will ensure stability of the club over the next seven (7) years and ensuing ten (10) years.

There will no longer be a need for a redemption list.

The club will have the opportunity to grow more quickly and add properties through the sale of net new treasury shares.  

The club believes the real estate market has stabilized and there is an opportunity for growth in the value of our members investment in the club over a seven (7) or seventeen (17) year period depending on how long a member opts to retain his/her membership.

The club will have the option to replace older properties and buy into exciting new locations and destinations.

Members Who Wish to Exit On the Sunset Date

If needed or desired, a set liquidation event will be held. Members will be informed about when they can liquidate their investment.  

There is no longer any uncertainty about how and when a member can liquidate their investment.

While you wait for the Sunset date the club has a stable platform for growing and prospering, with an opportunity for the value of your share to grow.

Members Who Wish to Exit the Club Before the Sunset Date

The rules will still provide a member the ability to find his/her own buyer and M Private Residences will facilitate the transfer under the existing provisions in the rules.

About M Private Residences

M Private Residences (http://www.mprivateresidences.com/about/about-m)
is a member-owned, destination club based in Canada with access to a number of properties around the world (http://www.mprivateresidences.com/residences). Members also have exclusive access to the renowned Mbassador concierge service. The club provides all the luxury in owning vacation property without the complications of second home ownership. We bring you the finest days of your life (http://www.mprivateresidences.com/blog)!

For more information, contact:

Garry Leitch, Vice President of Sales & Marketing

sales@mprivateresidences.com
End
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Tags:Luxury Travel, Destination Club, Luxury Vacation, Exclusive, Travel
Industry:Travel, Tourism
Location:Calgary - Alberta - Canada
Subject:Features
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