If last week’s safe heist in London has you worried about storing your valuables in a public place, one company is offering a very expensive alternative.
Collector rooms, which are being sold by Le Vault, a new luxury store based in Abu Dhabi, are the equivalent of having your own jewellery store secured behind a vault door.
“We design a lounge seating area with jewellery behind you and around you to give you the feel of luxury,” says Samer Mashal, the owner and managing director of Le Vault, which sells safes, trunks and accessories.
“Everything inside is displayed like you are walking into a jewellery store. At the same time it is very safe from the outside. But this costs a lot of money.”
Prices for the rooms, which are installed in a buyer’s own home and are designed by the German luxury safe maker Doettling, start at €350,000 (Dh1.36 million).
Options include mahogany or suede-lined drawers and mechanical winders to keep your watches ticking. You can even have a safe deposit box installed in the walls for extra security.
But perhaps you don’t have enough jewellery to fill a whole room, yet you still have a lot of cash to splash. Le Vault also has an answer for that – a luxury safe.
One safe in its product range, the Bel Air Magnus, which weighs 1,500kg, stands 164cm high and is 120cm wide, costs between €170,000 and €220,000.
Le Vault, based in Abu Dhabi’s Nation Towers, also sells a range of trunks made by the Italian manufacturer Royal Trunk.
One, a €30,000 make-up trunk opens out to become a dressing table. Covered in ostrich leather, the trunk has 2,000 tacks hand-hammered by artisans.
“You lock it and you move it and you travel with it. And then you open it and there is a chair inside, you pull the chair out, all the shelves are there and all the make up is there. It’s quite different,” says Mr Mashal.
So is his shop, but is he confident it will attract enough customers? “I have had a few orders but nothing as large as the collector’s room because I am still not yet known around the country or city. As soon as the word is out I am sure there will be interest,” adds Mr Mashal.
Q&A
Samer Mashal, owner and managing director of Le Vault, Abu Dhabi’s latest luxury store, speaks to Gillian Duncan about the products it sells:
How did you come up with the idea?
I am a watch collector and I appreciate watches. I just love to collect them. Basically I got to meet the owner of Doettling, Markus Döttling. I met him through a friend of mine in Germany who sells watches. He introduced me to those guys and said that you might be interested in buying a safe for your watches one day. I thought wait, this is really nice. We don’t have this in the UAE.
But you sell a few brands’ goods now, right? Not just Doettling.
[Yes] Le Vault basically has five companies under one roof. I have two major companies which are Doettling and Royal Trunk, a company from Italy which produces trunks.
Say I want to buy a collector room. What is the process?
[Doettling] designs them … and gives options to the end user of different 3D renderings to see how the collector’s room is going to look. Then you go into the material selection phase. They send their team to the country and they have to see the location and take exact measurements.
What sort of options do you offer for finishes?
The sky’s the limit. Some people might want a really expensive exterior leather like a crocodile finish, a lizard finish, a python finish. Somebody might need blue leather or white leather. Customisation- wise, you can’t really reach an end.
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Company%C2%A0profile
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● Industry: M&A
● Funding size: Bootstrapped
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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- It is littered with an estimated 2 million mines, tank traps, razor wire fences and guard posts.
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- Former US president Bill Clinton visited Panmunjom in 1993, while Ronald Reagan visited the DMZ in 1983, George W. Bush in 2002 and Barack Obama visited a nearby military camp in 2012.
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Why it pays to compare
A comparison of sending Dh20,000 from the UAE using two different routes at the same time - the first direct from a UAE bank to a bank in Germany, and the second from the same UAE bank via an online platform to Germany - found key differences in cost and speed. The transfers were both initiated on January 30.
Route 1: bank transfer
The UAE bank charged Dh152.25 for the Dh20,000 transfer. On top of that, their exchange rate margin added a difference of around Dh415, compared with the mid-market rate.
Total cost: Dh567.25 - around 2.9 per cent of the total amount
Total received: €4,670.30
Route 2: online platform
The UAE bank’s charge for sending Dh20,000 to a UK dirham-denominated account was Dh2.10. The exchange rate margin cost was Dh60, plus a Dh12 fee.
Total cost: Dh74.10, around 0.4 per cent of the transaction
Total received: €4,756
The UAE bank transfer was far quicker – around two to three working days, while the online platform took around four to five days, but was considerably cheaper. In the online platform transfer, the funds were also exposed to currency risk during the period it took for them to arrive.
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