German company hopes to sell or lease islands to wealthy Chinese customers

There is nothing that epitomizes the height of luxury quite like owning an island of your own. If the Germany-based Vladi Private Islands has its way, rich Chinese will soon be able to add international islands to their prized collection.

Buying an island is one of the options for China's super rich to diversify their asset portfolios. Provided to China Daily

Vladi's optimism stems from the growing demand for high-end property among the wealthy in China, particularly for fancy villas and huge chateaus. The German company is one of the pioneers in rental and sale of private islands.

"Buying an island is like having an independent 'nation' where you can build houses, villas and other facilities just the way you like," says Wang, the CEO of a Chinese IT company and prospective island buyer, who declined to give his full name.

"I am looking to buy an island to have my own private space, where I can bring my partners and clients for board meetings or vacations and give them memorable experiences."

The privately owned Vladi recently leased an island in the Seychelles for about $2 million (1.5 million euros) for Prince William and Kate Middleton's honeymoon.

Vladi has been involving in leasing and selling more than 2,000 islands since Farhad Vladi, the German-born Canadian entrepreneur, set up the company 40 years ago. Its target clients in China and elsewhere are celebrities, individuals with high disposable incomes, film stars, and senior executives who are looking to fulfill a Robinson Crusoe like fantasy even as they enjoy the finer things in life that their status and position affords.

The company achieved revenue of $100 million last year through selling and leasing 30 private islands.

In an interview with China Daily during the Luxury Property Showcase event in Beijing this month, Wang Haiyang, sales director of Vladi, said the company has received many inquiries from China and built up a sizable and growing list of prospective Chinese customers within a few months of setting up office.

"Many of our Chinese clients are targeting islands with prices ranging from $1 million to $10 million, and the origin of their wealth is diverse," Wang said.

Chinese people are keen to diversify their asset portfolios by investing in foreign countries, hence "buying an island abroad is one of the best options, considering that there are government restrictions for the same in China."

He says islands are extremely scarce resources with only 12,000 available for rent or sale globally at any time. "With such limited options available, it is a sound investment for those who are seeking higher returns," he says.

Wang says the market is ready just now with the surge of the so-called super-rich and their higher spending power.

"Most of our clients are from Europe and the US, but since the real estate markets have declined in these regions, we are going to put more focus on the Chinese market."

Manuel Brinkschulte, managing director of Vladi, says the chief driver for this rarefied market is still prestige.

"Once a celebrity or successful entrepreneur buys a private island, it becomes the ultimate status symbol, and his peers will want the same."

Other factors that are fueling the passion are the fantasy of a private hideaway surrounded by the ocean.

"The pursuit of quality life is always a key consideration for most of our clients. Owning a private island is not in the same category as a chauffeur-driven Rolls Royce, a town house in Manhattan or a yacht in the Mediterranean. It's a whole new experience altogether," Brinkschulte says.

Big Hollywood stars like the late Marlon Brando, Mel Gibson, Leonardo DiCaprio and Johnny Depp are among the big-ticket island owners. But those on smaller budgets can also find islands at lower prices.

"A private island is not only for celebrities and millionaires, and in today's market it can be within the reach of an average person," Wang says.

"With only half a million dollars you can buy an island in eastern Canada, with a six-bedroom villa, a yacht, and all the facilities in the island on freehold. But with the same amount you can only buy a small apartment on a lease of 65 or 70 years in Beijing."

However, getting a private island is no easy task. Issues such as food supply, house maintenance, electricity, isolation from social life and healthcare are among the concerns for most people.

Indeed, one potential Chinese customer gave up his island dream when he came to know that flying in the necessary building or food materials would cost $3,000 an hour.

"Island ownership is not for those who care too much about their outgoings," says Li Jie, a white-collar worker from Beijing who attended the Luxury Property Showcase event. "If you happen to buy an undeveloped island, you will need to import everything from the mainland, and there's also the problem of staff for the maintenance. You can't lock up an island and just leave. You have to find helpers who are willing to stay on the island without any social life and manage everything."

Wang, the sales director, sees things differently. He says the combination of improvements in international transport, including scheduled airlines and private jets, solar generators and desalination plants have helped reduce these kinds of problems.

"Some may have flashy cars and some may have designer clothes and nice houses. Undoubtedly the best luxury that one could possibly have is an island which you can transform into your own kingdom."