Hutchinson & Co. Trustees (Asia) Limited is an associate company of the Hutchinson Trustees Group, a widely recognised industry leader for the provision of holiday membership and shared leisure services. Our expert and professional team draws on 35 years’ experience in the industry.
We provide guidance to the Karma Group on incorporating the correct trust structure behind many of their products, assist in its set-up and provide essential back office services once the project is up and running.
Karma Group, was established in 1993 by its Founder & Chairman, Mr. John Spence, a socially conscious entrepreneur, and one of the world’s most respected innovators and free-thinkers in the fields of travel, architecture and entertainment. His vision has made the Karma Group an award winning international travel and lifestyle brand offering extraordinary experiences and exclusive curated entertainment in the world’s most beautiful locations at their acclaimed holiday resorts, numbering 44 and counting, in 12 countries (the United Kingdom, Australia, Egypt, France, Germany, Greece, Italy, India, Indonesia, Spain, Thailand and Vietnam). From soulful spas to happening beach parties, historic hotels to designer resorts, Karma Group is created for travellers who understand that reaching the destination is only the start of their journey. Group brands include, Karma Resorts, Karma Retreat, Karma Royal, Karma Estates, Karma Beach, Karma Spa and Karma Boutique.
Karma Group is an international travel & lifestyle brand with resorts currently in over a dozen countries and members from across the globe. As part of its mission statement, the Karma Group will ensure the highest level of customer satisfaction and client longevity. Arising out of this is the intent to protect the legal rights of occupancy of its members to use accommodation, for the duration of the membership.
Hutchinson Asia provides the Karma Group with a trust structure that combines local property legislation with the benefits of United Kingdom trust laws in protecting its members’ legal rights of occupation of holiday accommodation. The Hutchinson Group is one of the biggest independent specialised holiday trustees in UK and Europe having commenced its operations in 1985. It has been providing services for the Karma Group since Karma’s inception, keeping the interests of the Karma Group members paramount.
The Karma Group is amongst the premier companies in the world that protects the legal right to use of the holiday time-share purchaser. The protection afforded by the trusteeship is widely practiced and legislated in many parts of the world. The Trustee’s prime responsibility is to protect the long-term interests of the member, by ensuring that he receives an inalienable legal right to use the holiday entitlements subscribed to for the entire period of the membership.
While the land laws and legal formalities vary from country to country in which the Karma Group resort is based, Hutchinson combines the trust structure with the local laws and legal requirements to ensure that the member receives a secured legal right to use the holiday accommodation for the duration of the membership.
The aim of a trustee system is to give complete legal security to the purchaser of their right to use the holiday timeshare/fractional apartment and therefore to provide the purchaser with greater security.
This is affected by transferring legal ownership of the timeshare/fractional apartment to a trustee whilst reserving all the practical benefits of ownership to the developer (and in turn the member). This secures the member’s legal position and protects all parties against the repercussions of the demise of any of the others.
Hutchinson & Co. Trustees (Asia) Limited
We are an associate of the Hutchinson Trustees Group, one of the top specialised vacation ownership trustees in the world. We pride ourselves on providing the Karma Group with an efficient and professional trustee service, one which adds credibility to its resorts and adds value for its members. Whether it be a points club structure or a fractional ownership project, we are in place to offer a tailored service providing legal security and peace of mind to Karma’s clients.
35 years’ of industry experience
THE TRUSTEE SYSTEM
The aim of the trustee system is to protect the legal right of a timeshare/fractional holiday member to use the apartments at a given resort in line with the terms and conditions of their Purchase Agreement for the duration of their holiday membership. At Hutchinson, we secure this legal right by putting in place structures which combine local property legislation with the United Kingdom trust law.
STRENGTHS AND ADVANTAGES
1. A Highly Sophisticated and Refined System
We have legal contacts in countries throughout the world, which enables us to assist developers in ensuring they have the correct structure in place to comply with local and other legislative requirements.
2. Flexibility
The trustee system is flexible and structures can be incorporated to suit the individual requirements of developers.
3. Credibility
With the holiday membership industry susceptible to scams in today’s environment, consumers need to know that the product they are signing up for can be trusted. With our trustee system, both the purchaser and the developer benefit.
4. Security
The Hutchinson Group’s core values are “Service & Security”, and the independent nature of our service outside of the developer’s team, along with external legal opinions, makes sure the holiday accommodation is ring-fenced and secure.
3. Credibility
With the timeshare industry susceptible to scams in today’s environment, consumers need to know that the product they are signing up for can be trusted. With our trustee system, both the purchaser and the developer benefit.
4. Management Charges
Having established the level of the annual managementcharge, it is imperative that an efficient deterrent existsagainst non-payers. The ability to suspend and ultimatelyrepossess the use rights of the persistent non-payer isembodied in the Trustee System.
5. Synergy with Exchange Organisations
Much of the information required by the InternationalExchange Organisations on a resort is obtained byputting the property into trust and the Trustee’sexpertise is therefore useful in assisting with the resort’saffiliation with the Exchange Organisation in a timelyfashion.
6. Ongoing Commitments
Depending on each Developer’s viewpoint, they mayeither wish to maintain control of themanagement ofthe resort or transfer this to the Vacation Owners. Bothoptions can be accommodated under the Trustee System.
7. Government Restrictions
In many countries, governments have introduced toughand stringent laws which impose significant restrictionson vacation ownership Developers. This often happenswhere purchasers have not been given what they havepaid for by non-trust resorts. The Trustee System protectsagainst this and therefore reduces the likelihood ofunreasonable legislation.
8. Inventory Control
In a sale orientated environment, an efficient andprofessional control of the inventory of weeks and unitsbeing sold is imperative to the success of not only theDeveloper’s organization, but also a key factor in thecredibility of the product with the purchaser.
9. Upgrades
The Trustee System provides a cost effective and efficientmethod of processing both new sales and upgrades.
10. Security
The Hutchinson Group’s core values are “Service & Security”, and the independent nature of our service outside of the developer’s team, along with external legal opinions, makes sure the timeshare accommodation is ring-fenced and secure.
- Ernst & Young Australia Entrepreneur of the Year Award 2010
- Multiple Winner of the Global Networking Experience-GNEX-Entrepreneur of the Year
- Edward P. Bass Distinguished Visiting Architecture Fellow (2013 & 2019), awarded by YALE University School of Architecture
- Distinguished Visiting Fellowship in the Department of Architecture & Urban Design (2015), awarded by The University of California
- Member of the Christel House (Charity) Board of Trustees for Europe (2022)
Specialised Roles
Additional Back-Office Services
Aside from the core trustee role, our dedicated team provides numerous back-office services to Karma’s operation which enhances the quality of service they are able to deliver to their members. Such services include:
- Client database & inventory management
- Escrow services
- Contract processing & issuance of member certificates
- Review of legal documentation
- Mail-outs
- Company formation & administration services
