COP28 closed last week with an agreement that signals the “beginning of the end” of the fossil fuel era

Following the close of COP28 last week, Markus Müller, Chief Investment Officer of ESG & Global Head of Chief Investment Office at Deutsche Bank’s Private Bank, speaks to LUX about his key takeaways from the conference

LUX: Did COP28 move the dial on climate change?
Markus Müller: Yes, from my point of view it did. Look at the commitments to triple global renewable energy capacity by 2030 and double energy efficiency. But it is what is implied by such commitments that is most interesting. This isn’t just a matter of developing pure supply. We’re also going to have to develop markets – by changing permissions and enhancing grid connection, to mention just two factors out of many.

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We also have to recognise who can do what by when. Rapid adoption of renewables may pose the biggest challenge for the Global South. After nearly 30 years of these climate change conferences, it’s also highly important that fossil fuels have finally formally been mentioned in the commitment for a “transition from fossil fuels to cleaner energy”. In statements for previous COPs, there has just been talk about reduction of harmful subsidies. This is a clear step further. The problem for countries is now to make this happen without sacrificing living standards.

Global solidarity was shown at COP28 when negotiators from nearly 200 Parties came together and signed on the world’s first ‘global stocktake’ to ratchet up climate action before the end of the decade

LUX: What was your best professional moment at COP28 and why?
MM: My best professional moment was a talanoa-style dialogue with the Island Youth from Hawaii, Philippines, Palau and Samoa. It was impressive to listen to the Island Youth discuss their views and hear their take on challenges ahead. The dialogue helped me understand how disconnected the world still is on many topics – but it also revealed a lot of hope for the future. We know what to do on climate change but we have to act now.

LUX: What was the biggest disappointment and why?
MM: The biggest disappointment was that the sheer scale of event hindered effective dialogue between businesses, policymakers and NGOs. Compared to recent COPs it was simply too big – in terms of numbers of attendees and, for example, physical distance between their stalls. We could have done a better job in bringing together the “needs” with the “what” and the “how”.

Over 85,000 participants attended COP28 including civil society, business, Indigenous Peoples, youth, philanthropy, and international organisations as well as world leaders

LUX: Do you sense genuine momentum towards changing economic thought to take account of natural capital, or is this still an outlier?
MM: I think that nature is coming more and more towards centre-stage but it still isn’t there yet. Next year’s biodiversity COP (COP16 in Australia) should however help make it clear that if we want to tackle the climate crisis we also need to solve the biodiversity and ocean crisis. We need nature for mitigation and adaptation and we need to think more in terms of natural capital to work out how best to do this.

LUX: “Overall, COP28 did more harm than good. The environmentally damaging deals that emerged from informal meetings will do more harm than any resolutions will do good”. True or false, and why?
MM: False. What about all the positives what we all bring home from our informal conversations too? Also remember how news reporting from this and previous COPs have raised awareness of environmental issues in public discussion worldwide? COPs have normalised open discussion of topics previously seen (wrongly) as not relevant to the global citizen. We probably don’t give enough prominence to the publication of the “Global Stocktake” either. This text lays not only the pathway that nations must take to limit global warming to the previously-agreed-upon goal of no more than 2°C higher than pre-industrial levels—but also individual countries’ progress along this path.

COP28 saw Parties agree to Azerbaijan as host of COP29

LUX: Hypothetical question: you are hosting one of the next COPs, and you have absolute power over the final resolution. What would it state – in a way that is both effective and implementable?
MM: I’d make three commitments. First, for Nature and Ocean to join Climate at centre-stage of policymakers’ attentions. Second, to prioritise fixing problems with the allocation of climate finance. Third, and this is very much linked with the second commitment, to put an explicit focus on fairness. Most such finance to middle-income countries for projects that reduce emissions, such as wind or solar energy.

Read more: COP28 Diary by Darius Maleki

Far less goes to the poorer countries, and even smaller amounts to help countries adapt to the effects of the climate crisis. Many participants believe that the focus of future COP meetings needs to be on a fair way to reach targets. As part of this, developed economies need to band together to financially support developing economies in the search for a new, less fossil-fuel intense development path. I think we’ve seen a change in attitudes here in recent COPs and I look forward to them delivering much more here in coming years.

Markus Müller is Chief Investment Officer of ESG & Global Head of Chief Investment Office at Deutsche Bank’s Private Bank

Find out more:  deutschewealth.com/esg

YKK’s NATULON® Mechanically Recycled Zip is made with recycled yarn and post-consumer plastic bottles

The amount of zips produced by YKK each year far outstrips the number of people currently on Earth. So how can a company mass producing and growing at such scale stay true to values of circularity and sustainability? LUX speaks to Jim Reed, CEO of YKK America, about why he believes cost and speed need not be barriers to a sustainable business

LUX: Can you explain the cycle of goodness and how it relates to the YKK philosophy?
Jim Reed: The cycle of goodness – meaning that no one prospers without rendering benefit to others – was developed by our founder, Tadao Yoshida. One of his inspirations was Andrew Carnegie, a late 19th century early 20th century steel tycoon, who had a philosophy about a business’ obligation to society. As a young man, Tadao Yoshida got hold of a translated copy of Andrew Carnegie’s biography. He was inspired by Andrew Carnegie’s words and he decided that was the philosophy that should drive us. He was always entrepreneurial, but it wasn’t about how wealthy he could get, it was about how he could help. He wanted to contribute to society.

YKK is used by hundreds of major clothing companies including The North Face, Patagonia, Levi’s and Nike

LUX: Your president, Hiroaki Ōtani, said the company’s immediate vision is for ‘better products at a lower cost and greater speed, more sustainably’. How do you plan to chase growth while also racing towards carbon neutrality?
JR: President Ōtani is talking about getting the right materials for the right products to the right customer at the right time. If you think about those concepts, you’re not overproducing. We’re producing over 10 billion zippers in a year, but our objective is that, at the end of the day, every zipper has a perfect spot and nothing gets wasted. On top of that, he talks about better products, lower cost, greater speed, and more sustainability. If we can be more efficient, and some of the obstacles to sustainability – cost – can be reduced, then a sustainable product can match the price of the less sustainable cheaper product and you can match that substitution more easily.

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President Ōtani reorganised our company in a number of different ways five years ago. He created what we call the Technology Innovation Centre. He took all the smartest people in our company and put them in the Technology Innovation Centre, where they were working on pure research, not product development. Innovation and technology have always been an important part of YKK, and particularly now with climate change issues and sustainability, we all need to be making significant changes.

Beyond zips, YKK produces a variety of other products such as snaps, buttons, buckles, and textiles for apparel and industrial use

LUX: How far is the company’s adoption of renewables impacting carbon emissions?
JR: We’re doing very well in that area. We reported at the end of the last fiscal year that we had reduced scope 1 and scope 2 CO2 emissions by almost 47% against our base year. What’s even more significant is that we’re not talking about CO2 emissions per zipper – we’re actually growing our production. Even though our production is increasing, we know our CO2 emissions have to be reduced, and we were able to reduce them significantly. Our 2018 level of CO2 emissions is our base level, by 2030 we’ll cut that in half, and by 2050 we’ll be carbon neutral. Around the world we’re looking at about 32 facilities which are currently using 100% renewable electricity, and very actively working to change the others. That can be a challenge because every facility has a different footprint and has a different source of electricity. But we are continuing to try to find a variety of different mechanisms to employ this.

LUX: What are the pillars for sustainable strategies for textiles packaging and waste management?
JR: For textiles, the main thing is to switch over to recycled thread. We call that NATULON. YKK had been offering to use recycled thread for over 20 years, and we’ve probably had the product for 25 years. Now, the market desires it, and so now we are able to switch over to 100% recycled textile. 26% of our products last year were using it, and that’s going to grow rapidly. We hope that will get up to 41% by next year. We’re working on a complete switchover.

YKK produces more than 3 million kilometers of zips every year

When we talk about waste management, you think about inputs coming into the factory and products coming out, and waste as a by-product of that. You put that waste back into your process. The objective is to get inputs coming into your factory and the only thing that comes out is the product. ECO-DYE technology uses CO2 instead of water to colour the zipper tape. That removes water from the process, which removes the need to take dye out of the water. We also have something called AcroPlating. If you get rid of the need to apply the bad chemicals, then you don’t have to worry about managing the waste on the back end.

Read more: Salomon CEO Franco Fogliato on environmental responsibility in business

LUX: Can you tell us about the partnership between YKK and the Monitor for Circular Fashion? Do you think it could lead to systemic change within the fashion industry?
JR: These partnerships are really important because, just like the UN statement on climate change or the Sustainable Development Goals or the Fashion Charter, all of these statements and actions can really scope the objective to solve the problem. It gives us all targets, and then when we join the Charter, we make promises that we have to stand by. Those are extremely important, because we all need to be speaking the same language and talking about the same objectives. With those statements, the fashion industry can declare to the people of the world that we’re moving in an environmentally-friendly direction and can get the support of their customers, which gives us the inspiration to innovate into that change. Once those goals are clear, then industry can innovate towards it and solve the problem just like we’ve been able to solve any problem when we’re focused on it.

All images courtesy of YKK

Find out more: www.ykkfastening.com/sustainability

Four Seasons Private Residences New Orleans

Four Seasons is not only world renowned for its luxurious hotels but also its private residences. Here, LUX speaks to Paul White, President of Four Seasons Private Residences about the success and growth of the brand

Paul White, President Four Seasons Private Residences

1. For the high net worth individual, what makes a Four Seasons Private Residence singularly attractive over a standalone home?

The goal of our residential strategy is to extend the Four Seasons lifestyle experience, creating the very best homes in the world – in the best locations, of the highest quality, and accompanied by Four Seasons legendary service. We are a “people powered brand” so this service is a fundamental part of our residential offering.

Alongside our renowned service offering, residents can enjoy the best of both worlds with exclusive and private homes that provide hotel-inspired amenities that they have come to love when staying with Four Seasons around the world. These amenities include incredible communal areas, private amenities and spacious lobbies and social areas.

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A major benefit to homeowners is that Four Seasons acts as the property managers of every residential property in our portfolio – we do not outsource to third parties like some other brands. If owners are only spending a portion of their time in-residence, they can trust that Four Seasons is on the ground and will care for and maintain their asset while they are away. This also safeguards their investment for the future.

2. Unlike unbranded residences, Four Seasons have a premium on trust and credibility in the luxury real estate sector. How has this buttressed the growing consumer desire for security and peace of mind amid the instability of the past year?

During the pandemic and as our industry looks forward to recovery, the trust and confidence in the Four Seasons brand, paired with our legendary service, is what residents are looking for and what is most appealing to prospective buyers. Especially in a lockdown scenario, they have all they need within the Four Seasons experience they know and trust.

During the height of the pandemic, more and more of our residents stayed in place in their Four Seasons home, a testament to the comfort, confidence and peace of mind they feel in the asset and in our service. Additionally, with guidance from internationally recognized experts, Four Seasons also developed Lead With Care, our enhanced global health and safety program focused on providing care, confidence and comfort to all guests, employees and residents within the new COVID-19 environment.

The use of technology to offer contactless service has become even more important in light of COVID-19, which is why we extended the award-winning Four Seasons App and Chat platforms to create a digital experience for our residents, accessible through their phones, tablets, or computers. The residential digital experience allows residents to further customise their residential lifestyle experience, including securely managing and maintaining their home, connecting with their designated Four Seasons team members, and requesting services with ease and convenience.

Four Seasons Private Residences Dubai

3. Owing to the phenomenal success of Four Seasons Private Residences, the brand is expecting to double its portfolio. How do you sustain its reputation for uniqueness and curation while pursuing growth on a global scale?

Our formula is to blend high profile real estate with the concept of lifestyle, to create the ultimate in luxury living for discerning homeowners who are in the market to purchase an amenity-rich and serviced residence or vacation home. Whether you live with us or vacation with us, a Four Seasons residential experience marries the world’s finest real estate and personalised, integrated service.

Our focus with both hotels and residences has always been to offer a world-class product in the best locations. We seek developers who can help us achieve this, and whose goals for offering the highest quality of location, architectural stature, interior design and amenities are aligned with ours. Our partners are equally as committed to excellence, and choose Four Seasons to deliver exceptional personalised service to residence owners.

As a brand, our residential offering is not new, but an important and growing part of our business. We have been a leader in branded residential since 1985, when the company opened its first private residences in Boston. Today, we operate 46 Private Residences globally, designed and built to Four Seasons standards in both global urban centers and gateway cities, as well as resort destinations.

4. Four Seasons branded residences have been around since 1985. Has there been a shift in the type of clientele since then?

Branded residential offerings are well suited to meet the changing needs of today’s buyer, not only by offering spacious, beautifully designed homes, but through the trust and strength of the brand and knowing that you and your home will be cared for.

Four Seasons buyers are not only looking for luxury and prestige – but also security, peace of mind and privacy – and are prepared to pay premium prices for a brand that goes above and beyond to deliver in these areas. A Four Seasons Private Residence make the perfect investment choice for both local and internationally mobile buyers, giving clients the opportunity to buy into a home with a globally recognised, reputable brand with both cache and credibility. As a result of the pandemic, we have also seen the lines blur around first, second, third homes. With the ability to work from anywhere, residents are using their homes differently than they have before.

Four Seasons Private Residences. 20 Grosvenor Square

5. The private residences’ clientele ranges from full- and part-time occupants to those looking solely for an investment property. How do you cater to these various needs while maintaining an overall sense of cohesion and community?

The Four Seasons buyer profile varies from market to market – Four Seasons trends indicate that buyers are local who know the market and brand. There are also many UHNW buyers with an affinity to the Four Seasons, an affinity for a given location, and who are pre-disposed to buying real estate for personal use and enjoyment and/or as an investment.

While we are dedicated to upholding our brand standards, we recognise that the best real estate in the world is a genuine reflection of its locale. Each Four Seasons property is reflective of the unique culture, history and aesthetic of the destination in which it sits. We work closely with our designers and developers to understand the buyer profile in each location and optimise the design and amenities accordingly to meet the unique needs of the luxury consumer in that market and connect them more deeply with the local environment.

Read more: Luxury Travel Views: Four Seasons Grand-Hôtel du Cap-Ferrat, Côte d’Azur

6. You are in the midst of growing your portfolio of standalone residences, with projects in London, Los Angeles, Marrakech and San Francisco. Tell us more about the process involved in these projects, and what differentiates them from other residences in the brand’s portfolio.

As a brand, Four Seasons is strategic and deliberate with the markets we choose to operate in. These standalone residential projects are unique in that they exist separately from hotels and resorts. They are a distinct yet complementary Four Seasons living experience, and in many global gateway markets we offer both standalone residential projects as well as residences that are connected to a hotel.

As we continue our robust residential expansion, our focus is on offering Four Seasons Private Residences in key destinations where our residents want to live, looking at the latest buying trends and understanding their residents and their needs. Our biggest differentiator is our service and this has always been driven by our people. It is our teams on the ground, led by a dedicated Director of Residences, who bring the Four Seasons experience to life, delivering the genuine, personalised service that defines our brand the world over.

Find out more: fourseasons.com

Knight Frank launched its 2020 Wealth Report at Chelsea Barracks, a new luxury residential development in Belgravia, London

Last week saw the official launch of the 13th edition of Knight Frank’s Wealth Report at Chelsea Barracks in Belgravia, London with a new focus on on data relating specifically to ultra-high net worth individuals, providing invaluable insight for investors and those seeking to buy new homes. Here’s what you need to know

Wealth is increasing on a global scale

Despite geopolitical uncertainty, the global number of ultra-high net worth individuals (UHNWIs) is still growing and is expected to rise by 27% over the next five years, taking the total to an estimated 649,331.

The US still dominates with the largest UHNWI population (240,575), followed by China (61,600), Germany (23,000), France (18,800), Japan (17,000) and the UK (14,400). India has the fastest growing UHNWI population with an estimated 73% rise over the next five years.

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New York wins for lifestyle

The report assesses 100 cities based on their global appeal as a place to invest, live and spend time. This year, New York came top, pushing London into second place followed by Paris, Hong Kong and Los Angeles.

Wellbeing is a new priority

According to The Wealth Report Attitudes Survey, 80% of UHNWIs are dedicating more time and money into their wellbeing. There is also a growing focus on wellness as a measure of national performance with Oslo in first place followed by Zurich and Helsinki tied in second place.

And so is sustainability

This year’s report discusses the impact of luxury travel on the environment, featuring insights from William Mathieson, Intelligence Director of The Superyacht Group and Thomas Flohr, Founder and Chairman of Vistajet into how their businesses are becoming more sustainable.

Read more: Darius Sanai’s Luxury Travel Views Spring 2020

Residential trends are changing

The report also includes the latest results from the Prime International Residential Index (PIRI), which places Frankfurt at the top of the second homes market, followed by Lisbon, Taipei, Seoul and Houston.

Lord Andrew Hay, the Global Head of Residential at Knight Frank, presenting data at the launch of this year’s Wealth Report

10 neighbourhoods to watch according to Knight Frank’s property experts:

1. Road to Amizmiz, Marrakech, Morocco
2. Fengtai, Beijing, China
3. Sentosa, Singapore
4. Sydney Harbour, Australia
5. St Martin-de-Belleville, The French Alps, France
6. SoPo, Berlin, Germany
7. Mahou-Calderón, Madrid, Spain
8. Maida Vale, London, UK
9. Museum District, Houston, US
10. Imperial Beach, San Diego, US

To view the full wealth report visit: knightfrank.co.uk

Restoring the Garrison Chapel

The Garrison Chapel was constructed in 1859, and functioned as an active church for 150 years before it was deconsecrated. In 2018, after an extensive refurbishment supported by the Chelsea Barracks Chapel Trust, the building was reopened as a community arts and culture space.

Watch the below video to learn more about the project:

Chelsea Barracks – The Garrison Chapel from Chelsea Barracks, London SW1 on Vimeo.

For more information on Chelsea Barracks visit: chelseabarracks.com

People are buying bigger and bigger planes, says Jetcraft’s Jahid Fazal-Karim such as the Global 6000 private jet pictured here

Jahid Fazal-Karim joined Jetcraft in 2008, and has since transformed the company from a primarily US-based organisation to a global trading platform. LUX Editor-in-Chief speaks to the Dubai-based businessman about the private jet market, why buying pre-owned makes sense and how the jet sharing business is creating future buyers

Jahid Fazal-Karim

LUX: Can you tell us a bit about your background and how you got into aviation?
Jahid Fazal-Karim: I’ve always been passionate about aviation. I studied aerospace engineering in France and after that I did a master’s degree in air transport management in Crenfield. Then I joined Airbus in the marketing team. After that I moved to the US to work in marketing for a commercial aircraft there. I spent nine years in commercial aviation and then eight years in business jets. My last job [before Jetcraft] was at Bombardier where I was running the sales for private jets worldwide.

LUX: What led you to Jetcraft?
Jahid Fazal-Karim: I was 38 years old, and I come from a family of entrepreneurs. My father was an entrepreneur, my grandfather was an entrepreneur, and I came to the point where I’d been working for two big companies and I thought: ‘okay, it’s probably time for me to start something on my own.’ As I said aviation was my passion so that’s where I wanted to stay, and I love the private jet side because it’s much more diverse. On the commercial aircraft side of things, you know your clients and they all have the same issues. They’re airlines, they buy an airplane to make money, right? So it’s very methodical. They all go for the best deal that’s going to produce the most amount of profit for them. The business aircraft side is much more diverse. You have airlines like VistaJet and Flexjet that are more analytical, but you also have the emotional side, or the high-net-worth individuals who are just buying planes. Some people will just buy a plane because they like it or they won’t buy it because they won’t like it. It is what it is. I’ve had clients that won’t even go in the plane. I remember I showed a Challenger 604 once, and this client came in, he saw the plane and said, ‘It looks too fat.’ The private jet industry is more varied and that makes it fun and exciting.

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LUX: What was your initial business model for Jetcraft?
Jahid Fazal-Karim: So here’s the thing about this industry. Nowadays, the industry is much more organised, and it it is getting more and more consolidated and organised. But 10 years ago when I left Bombardier, it was still outside the manufacturers, which were really professional companies that run proper businesses. But on the non-manufacturer side, nobody really looked at figuring out a way to make it a real structure for buying and selling. So when I left, I saw there was a gap there, and I started by doing a lot of deals by myself. It’s funny because I went from running an organisation with 300 people to doing everything by myself. I was getting a lot of business and at some point I had to either create a structure or buy into a good structure that I could grow. And that’s how, I ended up doing a deal with Jetcraft. At the time, I met Bucky Oliver, who was the owner of Jetcraft and I bought 50% of the company and it was a great company because he had the right pace. You know when you build something, you have to think about a pyramid, right? If your base is good, then you can start adding blocks. If it’s the other way around, it’s not going to work. The base of Jetcraft was really good, the culture was really good, the management team was good. So I bought 50% of Jetcraft and really expanded it to become a proper global structured company for sales and marketing. Essentially, we’re a sales and marketing company, but all I’ve done really is duplicate the OEM sales structure but into a non-OEM environment, and put some structure around brokerage, around buying, selling, financing and deals.

LUX: Is it purely a brokerage, or do you buy and sell yourself?
Jahid Fazal-Karim: Brokerage is one piece of our business because you have to be in the brokerage business to generate deals, but the main thing that we do that a lot of people can’t do is that we trade, we buy and sell. The other unique thing about Jetcraft is that we’re truly a global company, meaning that if you’re Chinese and you want to buy an airplane, you’ll be talking to somebody at Jetcraft that actually speaks your language, and so that allows us to be everywhere. Right now, for instance, the US is a pretty active market, so a lot of buyers are from North America, but outside North America there are challenges in Russia, China, Africa and so we have a lot of sellers from those countries. Now if you’re in the US, you’re a North American buyer and you want to buy a Chinese airplane, it’s actually a challenge for you to do it. And they don’t like to do it, because for them they think: ‘Oh no, it’s Chinese. I’m not going to touch the plane.’ So what do we do? We bridge that gap. We’ll go and acquire the plane from China, we’ll take it to the US, we’ll make it a US registered airplane, we’ll invest in the plane and we’ll make it proper US based airplane and then a US client can buy it. It’s all about being everywhere and arbitraging the sales side and the buy side.

LUX: Is the market driven purely by requirement?
Jahid Fazal-Karim: My background was working for manufacturers. So then you have to sell what you build, right? But the Jetcraft model is very different because it’s really customer centric. We actually provide what is best for the client. And like I said, some clients are very emotional people. They’ll say: ‘I want to buy that plane because it has three engines and I want to fly with three engines’, even when technically it doesn’t make a difference. It’s not less or more safe. But you know, if I had a client and that’s what he wants to buy, then I’ll find a way to get him the best three engine airplane that fits his needs. Some clients don’t know what they want so we’ll give them the choices of what’s available and list all the differences in all the different products.

We also focus on structuring a transaction that works for the client, because it’s not just about the airplane and the model and the brand. It’s also about how they want to buy. Some people are cash buyers, some people want to do tax deals, some people want to finance, some people want to be more confidential and they don’t want to be seen as owning a plane. So then you have to build different structures for them, and that’s been the big shift between working for Bombardier or Airbus and being at Jetcraft.

Interiors of the Global 6000

LUX: So there’s a whole service element to it?
Jahid Fazal-Karim: Yes, but we don’t actually do a lot of the services portion ourselves. For instance, I don’t manage planes, I don’t operate them because there are enough people in the world that are actually doing that very well, but we know all of the good service providers, we have relationships all around the world to put the buyers in touch with the right service providers. We really focus on the asset, on the buying, the selling, or representing a buyer, or representing a seller, and structuring the deal around the asset.

LUX: Are your clients typically businesses or individuals?
Jahid Fazal-Karim: Our clients can be corporations, or they can be private individuals. It’s really a diverse space. Very often people ask me: ‘what do you really sell?’ And I tell people: at private aviation, we sell time. It’s about how valuable your time is. If you’re a billionaire, or you’re CEO of a big company, your time is so precious that you’re not going to go waste time going to an airport, doing a check in, arriving three hours before, et cetera, et cetera.  That’s where the private jet comes into play. And so most of our deals are with business people. They’re not for really private use. They’re for businesses, to be more productive. That’s why we call it a business jet.

Read more: Hirsh’s creative director on designing timeless jewellery

LUX: Why do you think clients choose you over other options?
Jahid Fazal-Karim: That’s a very simple question to answer actually. We are the largest in our field and we have the best experience advising clients to buy whatever they need, number one. Number two, we can probably structure a transaction that would be better than anybody else. And we’ll probably find the best airplane for you, at the best buy. Because if you talk to somebody else, maybe you’ll talk to somebody in London, you’ll have access to a few number of airplanes on the market, but your London contact isn’t going to know the right airplane that maybe selling out of Russia or China or Africa, which is going to be a better value. We’re everywhere and I think that makes a big difference.

LUX: Why would a client buy pre-owned jet rather than going straight to the manufacturer?
Jahid Fazal-Karim: When I advise clients, I always tell them that if you’re not biased against somebody else having flown the plane, then the pre-owned deal will always be a better economical solution because the pre-owned airplane has already taken the first depreciation. It’s like a car. Once the plane is new, you take it out of the garage, it’s already lost 10%. So let’s say you buy a three to five year old plane, which I think is a good sweet spot for a first time buyer, your depreciation risk over time will be a lot less than buying a brand-new plane. But there are also advantages of buying new planes. So then it becomes more of a personal preference.

LUX: In your opinion, what is the best business jet on the market?
Jahid Fazal-Karim: It depends on the category, how many people you want to fly, how far, how much money you want to spend.

LUX: Let’s say eight people, long-haul, unlimited spend.
Jahid Fazal-Karim: In terms of models, I would say there’s probably three main models. There’s the 7X/8X – they are very quick planes, very modern. On the Bombardier side, you have the global line, 6,000, 5,000, 6,500, 5,500 and then on the Gulfstream side, you have the G 500, 600, 650. Frankly those three manufacturers and those planes, they all have pluses and minuses. And it becomes a lot to do with preference and budget. If you have a limited budget, you’re probably going to go for either the Gulfstream or the Bombardier. If you have unlimited budget, you can probably go for the best one if you wanted to, but the three planes are pretty equivalent. I personally have a bit of a bias because I used to work for Bombardier and I sold the Global. I always felt that the Global was one of the best – it’s an amazing airplane, especially when when you’re inside the plane and flying. On today’s market, it’s probably the best compromise between size, range and comfort.

The Global 6000 is a great compromise between size, range and comfort, says Jahid Fazal-Karim

LUX: What changes have you seen in the market in the last few years?
Jahid Fazal-Karim: The main change that I’ve seen is that people are buying bigger and bigger airplanes. The mix of small planes versus big planes has changed. When I started at Bombardier in 2001, so almost 20 years ago, there were a lot of lighter jets selling on the market and if you looked at the model mix, they were very few large airplanes available. Really it was a duopoly between Gulfstream and Bombardier. Today, even if you look at most of the OEMs, they all have bigger planes, such as a 7X, 8X. Everybody is going bigger and longer range, and now you see a lot of first time buyers that actually buy a Global or a 7X, or a G550 or 650 as their first plane. 18 years ago, you started with $10 million or $8 million, not a $15 million plane.

LUX: Have you noticed a change in the demographics of consumers? Where are you doing business?
Jahid Fazal-Karim: The United States are still the largest users of private jets by far. After that it’s probably Europe and Latin America, and then Asia. And then China is obviously growing. But China is interesting because it should be growing a lot faster in terms of the number of jets they buy, but they have these ups and downs, depending on the government and the policies.

Interestingly, Monaco is good place for doing business because people are in a relaxed environment and usually it’s when they’re relaxed and that’s when they think about purchasing a plane or a boat or a house. I have a lot of meetings in summer in Monaco and meet people in a very relaxed environment, have lunch with them or go to Le Club 55 in St. Tropez. I’ve done a lot of deals in those places.

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LUX: Is the jet share market affecting your business?
Jahid Fazal-Karim: I find the jet share market an enhancement to our business because it actually allows people to get into the private jet segment. In the old days when you didn’t have the FlexJet, the NetJets, the VistaJet, you had to go buy your jet, right? Not anybody could afford to just buy a jet. Today, you don’t have to, I mean you have to be wealthy obviously, but you don’t have to be super wealthy to fly private. So people get a taste of private flying a lot earlier, which means when they get more successful, and they can actually afford a plane, they’ll go and buy it.  But where we can play really well [with those companies] is when they resell, because when they replace their fleet they need people like us to move the products.

LUX: How are you considering sustainability issues?
Jahid Fazal-Karim:  I think any business that you try to develop these days has to have some form of awareness of sustainability. I think there’s a lot of misconception about airplanes because people think that airplanes pollute the planet. But if you think about the actual emission of airplanes, not just private jets, even commercial aircraft, they are actually very fuel efficient. The consumption of fuel per person is actually probably less than cars. Weight is a huge issue for anybody that is going to develop an airplane because the lighter you can develop an airplane, the farther you can fly, and the less fuel you’re going to consume. So efficiency is at the core of the design of an airplane, you can’t design an airplane with inefficiencies. And the industry is always researching ways of being more and more and more efficient. I think the technology is there and I think down the line you’ll see more and more efficient airplanes out there.

LUX: Finally, when you are travelling for pleasure, where do you go?
Jahid Fazal-Karim: My family and I try to discover new places. What’s funny is that I’ve been to a lot of places for business, but I don’t know much about them. So for instance, there was one trip that I took with my family in China. I used to go to China quite a lot and I still go now, but I’d never done a real cultural experience in China. So I went to China with my wife and one of my son for two weeks and we really discovered China. We went to see the terracotta soldiers, for instance, in Xi’an, and all the temples in the old city in Beijing. We’re thinking about going into Japan this winter because my older son loves Japanese food.

Find out more: jetcraft.com

Grevillia is a waterfront residence on the port of Saint-Jean-Cap-Ferrat, on the market for €56m

Lord Andrew Hay. Image by John Wright

Lord Andrew Hay is Global Head of Residential at Knight Frank, the international real estate consultancy, and has built up property portfolios for some of the wealthiest people in the world. In this regular column, he is handed a theoretical sum of money by LUX and asked how he would invest it. This month, we asked Lord Hay where he would buy if he had £50m to spend on a single home

“If you had £50m to spend and could buy a property anywhere in the world – where would you choose?” It sounds like a question you’d ask your friends at a dinner party and actually is something I get asked quite regularly. My answer often changes as there are so many places around the world where I’d love to live, but having just returned from my summer holiday and with the thought of sunshine and the Mediterranean fresh in my mind along with this healthy budget, I would have to choose Saint-Jean-Cap-Ferrat on the French Riviera.

Cap Ferrat is glamorous yet unspoilt. It has been a firm favourite of aristocracy and Hollywood celebrities over the years and is arguably one of the most exclusive addresses in Europe. It is easily located between Monaco and Nice, accessible both by car and helicopter making it a huge draw for wealthy clients looking for a second or third home and is somewhere they go to escape.

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As we describe in the latest Knight Frank Prime France Report, the 1.3km forested peninsula is home to around 500 spacious villas on large plots and has one of the strongest international buyer profiles on the French Riviera. The Eastern side is home to the best beaches, the Port and the old town, it offers the widest array of amenities, whilst the west has a steeper coastline and good views. There are two Michelin-starred restaurants – La Voile d’Or and Le Cap and the small marina has around 560 berths.

Contemporary interiors of luxury villa Grevillia

When a client arrives on Cap Ferrat, they always ask for homes with direct access to the sea and that’s what I would look for. And, with Knight Frank recently opening its sixth office along the Cote d’Azur in Cap Ferrat, and its 22nd office in France, my team would be primed to help me.

Two properties in particular stand out to me. The first being Grevillia, on the market for €56m. This is an exceptional, waterfront residence on the port of Saint-Jean-Cap-Ferrat. It is a beautiful modern estate, comprising a principal villa, a secondary villa and a guest house – ideal for someone like me with a large family and friends who regularly join us on holiday.

Villa Neo is built into the hillside above the bay of Villefranche-sur-Mer, on the market at €15m.

The second is Villa Neo, on the market at €15m. Significantly under my €50m budget but it is a perfectly presented villa, built into the steep hillside above the bay of Villefranche-sur-Mer and provides idyllic Riviera scenery. The villa’s wide terrace, infinity pool and principal rooms face the Mediterranean Sea so by day the small sail boats moored in the azure water provide a languid but ever-changing picture while after dark, the lights of the peninsula gently sparkle against the night sky.

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Property prices on Cap-Ferrat range from €2,000,000 to over €200,000,000 with the most active band between €5,000,000 and €10,000,000. Prime property prices have increased by 4 per cent in the year to 2018 but this is a most extraordinary market, one that resonates far and wide with international buyers and also those based in Monaco looking for a nearby escape with a slower pace of life. The unique homes on glorious Saint-Jean-Cap-Ferrat make the market anything but predictable.

Cap Ferrat not only has a timeless quality which my wife Claire, being half-French, would adore, but it also has one of the broadest international buyer profiles of all the markets on the French Riviera. This helps protect owners’ exit strategies by ensuring the market isn’t dependent on the economic fortunes or currency shifts of one particular buyer nationality.

Find out more: knightfrank.co.uk

Mary Katrantzou (second from left) backstage at the 2018 Victoria’s Secret Fashion Show in New York

With a decade of successful collections behind her and a penchant for outside-the-box collaborations, Mary Katrantzou is a designer not only bursting with creativity but also with the business acumen to go truly global, as Carolyn Asome discovers

Don’t underestimate the agility required to keep up with Mary Katrantzou’s boundless curiosity, the ever-inventive ways she pushes herself out of her comfort zone, the rat-a-tat-tat of her myriad collaborations (more of which later) and fundamentally, her desire to never sit still.

Does Katrantzou, who for the past decade has wowed us with her own strand of quirky maximalism, breathtaking decoration techniques and architectural shapes, ever worry that her body may struggle to keep up with her mind? The Greek-born fashion designer (and veritable power house), who read architecture at the Rhode Island School of Design before studying for a BA in Textile Design at London’s Central Saint Martins, howls with laughter at this. “It’s true, I’ve turned 36… it probably doesn’t.”

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Few designers are able to confront the obstacles of growing their own business. Fewer still are able to articulate them quite as clearly as Katrantzou can – although one senses that she has always relished the challenge. Her voice lights up: “Growing your business is the ultimate in creativity. It forces you to have an understanding of the business of fashion. I don’t think you can have a company without that interest or without the ambition to be involved.”

In an increasingly volatile retail climate, what are the challenges she faces? “There are several, but one of them is having a voice that really stands out against the noise. There are lots of heritage brands with a rotation of designers at the helm. You need to really know what you stand for. I challenge myself to do that each year. You might think you have an idea of who your woman is, but it isn’t always as easy as you think it is. I am not designing for a romantic warrior…” she laughs. “Sure, she is bold and daring and she uses fashion as a tool of expression. What I design has an element of uplift, but it also has links to art and design – that is very much part of it, too.”

A look from Mary Katrantzou’s AW19 collection

The conundrum of dealing with an ever- whizzier hamster wheel of production also looms large. Thankfully, Katrantzou explains this is far less of a taboo subject than it was in the past. “Three years ago, no one wanted to talk about it and you almost closed your eyes and hoped for the best, but now other designers talk and you realise we are all in the same boat. Because obviously it is going to affect your creativity.”

Her solution? “While we have four drops annually, there are only two thematic collections a year so that means we have longer to talk about something, but we still have the newness.” Another challenge she mulls over is how to move outside ready-to-wear and use her design talent in other areas. Given that Katrantzou trained as an architect, she enjoys the challenge of looking at things from different perspectives and the creativity that comes with designing in different realms.

“We’ve tried to shift the brands in both directions: at one end offering shows at a demi- couture level and building on our customer relationships so that they can buy from us as made-to-measure or bespoke, but also, to do collaborations with much bigger global brands which allows us to reach a far wider audience.”

Read more: Photographer Thomas Demand on abstract perspectives

Katrantzou enjoys the fact that collaborations force her to think in a completely different way. “It’s an entirely different end use of a product. You can be democratic in a way that as an independent brand you just can’t be, because you can’t reach those price points or your minimums and production runs are so different. The modern brand of today needs to be reaching out to all different price points and different tiers. You are communicating with your customer but offering her a very comprehensive way of being able to buy your brand. We are doing a tenth of what we can do as we are still largely a ready-to-wear brand, but we’ve created jewellery with Swarovski, and done a small homeware range with a friend, Brigitta Spinocchia Freund. We’re also doing a ballet at Sadler’s Wells with Russell Maliphant and music by Vangelis, which is obviously so different from what you get when creating the costumes for the Victoria’s Secret show.”

The designer’s interesting collaborations – ones which challenge the well-trodden formula of designer/highstreet unions – are what caught the eye of Chinese investor Wendy Yu, the 28-year-old who has earned herself the reputation as China’s unofficial fashion ambassador.

Mary Katrantzou with Wendy Yu 2017

Two years ago, Katrantzou took investment from Yu. “I’d noticed and loved Mary’s capacity and talent to expand into different product categories along with her infectious energy and drive,” says Yu. “She’s built a brand with a strong and unique identity. I can see the potential of Mary Katrantzou homeware and beauty… I think the Chinese consumer would really buy into the brand at this lifestyle level too.”

Yu was one of three who came in on a ‘family and friends’ round of investment. For Katrantzou, the idea was also to look at what investors could offer aside from the financial support. “Wendy has been helpful with expanding in China. She is someone who understands how to help build a brand between east and west, between fashion and the arts.” Katrantzou has also learnt that in order to create awareness in China, it takes much more than just visiting once a year. It’s visiting regularly and initiating activations that really engages.”

Despite following a wholesale model, Katrantzou finds that clients come to her, season after season. “It’s rare these days to have a really loyal client. I don’t know what it is about the brand that elicits that loyalty but whatever it is, I don’t take it lightly.” This modesty is typical of Katrantzou. Such is her talent that she has clients who own so many of her clothes, they might easily stage a retrospective of her collections. It is telling that one of her most devoted fans is also one of the biggest collectors of Phoebe Philo’s collections at Celine – “our aesthetics couldn’t be more opposite” – and yet, there is something about the power of Katrantzou’s craft, the detailing and point of view that elicits such fandom.

Katrantzou and friends at London Fashion Week, 2016

Last September, Katrantzou celebrated her tenth anniversary, filling Camden’s Roundhouse with a collection all about collecting and collectables. Instead of a ‘best of ’ tribute to the preceding decade, she riffed on philately and entomology. One gown resembled a Fabergé egg gleaming with crystals, while a bustier dress revealed an array of coloured stone rings within a jewellery box.

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Her most recent collection was based on the elements – earth, air, fire and water – and how they exist within us. “I wanted to explore the fire – when you have that energy and passion; or air when you feel that sense of being light and free. And it was interesting to distil all of that into a collection as it was so abstract and unlike my previous collection, which was more literal and very object driven.”

A look from Mary Katrantzou’s AW19 collection

For water and air, Katrantzou explored silhouettes that were weightless, either in organza or tiers of ruffles, which “bounced in a cloudy way, or else we used feathers”, experimenting with materials and techniques that haven’t been explored before.

Today, there are 25 people in Katrantzou’s London studio and her label is sold in 50 countries. “Our strongest markets are in the US, the UK, southern Europe, the Middle East and now China,” she says. “You know you appeal to a certain type of woman, and while I’m not saying an archetypal woman, they do have something in common. And we don’t have to be big in the Nordic countries if we are not selling there.”

Increasingly, Katrantzou is thinking about how she fits into the world around her: what she stands for and how that extends to bigger topics. “Luxury for me is knowing you are not harming your environment, knowing that the pieces you create will last in someone’s wardrobe for ever. I find it interesting that clients increasingly come to me and say they want to spend x amount on this one dress rather than buy 20. There’s a return to craftsmanship, pieces that are made by hand. With demi-couture, you are supporting a more analogue approach to fashion. It isn’t a big percentage in terms of how many commissions we get, but it is a sizeable part of the business… and it’s growing.”

Find out more at: marykatrantzou.com

This article was originally published in the Summer 19 Issue.