Vilamoura World, a master developer backed by US private equity group Lone Star Funds and partner Paul Taylor, have unveiled plans for a €1 bn masterplan to enlarge Vilamoura, a residential golf resort in Portugal’s Algarve region.

Vilamoura World, a master developer backed by US private equity group Lone Star Funds and partner Paul Taylor, have unveiled plans for a €1 bn masterplan to enlarge Vilamoura, a residential golf resort in Portugal’s Algarve region.

The €1 bn project - one of the largest real estate developments in Portugal at present - has already received approval for 700,000 m2 in total.

'This is a plan with full backing from the government and the municipality and we have the ability to start building today. We also have a banking partner - Santander - which is available to provide 100% construction finance to prospective investors. This is a very compelling proposition,' commented Vilamoura World CEO Paul Taylor.

Masterplan
Vilamoura World, which bought the existing resort earlier this year with the backing of Lone Star’s Real Estate Fund III, is looking for investment partners and operators to develop key sites within the 400-hectare masterplan. The site is expected to see the development of a total of 5,000 homes across 18 development assets in the next 10 years as well as five hotels with about 4,000 rooms on the site, which already has five 18-hole golf courses and an 825-berth marina.

'Since launching our Master Plan, we have experienced high levels of international interest in our development assets, particularly from British, Swedish, German, and Chinese investors. The nascent economic recovery in Portugal is attracting global attention and respect, and this investment strengthens Portugal’s position as a real estate stronghold in Southern Europe,' commented Vilamoura World CEO Paul Taylor.

While marketing other turnkey assets to investors and developers, Vilamoura World is undertaking the first project itself. Dubbed L’Orangerie Phase II, it will involve the development of 5,800 m2 on a 21,569 m2 plot of land. On-site construction will start in January 2016. Sales for these units will commence off-plan from January, and work on the site is due to be completed in summer 2017. The project is an extension to the successful L’Orangerie Phase I, which has now almost sold out.

Chinese investors
Taylor hopes to capitalise on strong interest in Portuguese homes from international investors - largely Chinese and other European markets. Foreign home buyers have been very active in Portugal after the government introduced measures which allow non-Europeans to live in Portugal in exchange for property investment of at least €500,000. The so-called golden visa plan has cashed in over €1 bn since its introduction in October 2012 and continues to fuel foreign investment, noted Taylor.

‘In the last few years Portugal has made huge strides to attract international inward investment through fiscal benefits and the successful Golden Visa Programme. Vilamoura provides a major investment opportunity in the future of Portugal. The country is on the road to recovery,' he commented.

CBRE and Savills are marketing the project.