US private equity firm Lone Star has acquired Garvecat, the company responsible for the development of the Vilamoura resort in the Algarve region of Portugal.
US private equity firm Lone Star has acquired Garvecat, the company responsible for the development of the Vilamoura resort in the Algarve region of Portugal.
The deal, one of the largest real estate transactions in Portugal, was carried out on behalf of Lone Star Real Estate Fund III.
Although financial details were not disclosed, Lone Star said that the acquisition represents the 'largest real estate transaction in Portugal in 2015 and one of the most prominent since the start of the recent crisis'.
The vendors are Catalunya Banc's Corporación Bética and Algarvetur.
The sale is part of the divestment process carried out by Catalunya Banc as part of its strategy to focus on retail banking.
The Vilamoura resort spans in excess of 2,000 hectares around an 825-berth marina. The resort comprises of over 700,000 m2 of buildable land for the construction of hotels and over 5,000 apartments and houses.
Lone Star’s plans involve the reinvigoration of the resort trough a long term investment plan to be executed by a team led by Garvecat's CEO Paul Taylor.
Juan Pepa, Lone Star’s managing director for Spain and Portugal, said that 'Vilamoura represents a unique opportunity for international investors looking to capitalize on the ongoing recovery of Portugal and its real estate sector'.
Portuguese bank Santander Totta acted as adviser and financing partner for Lone Star in this transaction.
