RE Capital, the Geneva based property investment, development and asset management-business, and Neworld, a European-domiciled property development company, have launched Reward Properties, a new joint venture offering investors opportunities to buy into the high-end residential Portuguese real estate market.
The gross development value of the current Reward Properties portfolio is around €300 mln, with the selected development sites focusing on strong growth returns for investors, according to the firm.
The two companies first worked together in 2019, developing residential and mixed-use projects in Lisbon, with London based Skybound Capital coming in as the major financier. The partnership’s first project was LX Living, a €90-mln, 150-unit mixed-use development in Amoreiras, a sought-after residential neighbourhood in central Lisbon, which launched to South Africa and local Portuguese investors.
In addition to LX Living, Reward Properties has in its current portfolio two development sites in the Marvila district in Lisbon, where a total of 300 apartments will be built over the course of the next 4 years, and a further site in the Algarve, Southern Portugal, which will add another 43 villas to the company’s portfolio.
Skybound Capital, a London headquartered global wealth management business, will be Reward Properties’ official finance partner, providing investors with variety of loan solutions.
Newman Leech, co-founder and CEO of RE Capital, commented: 'Our objective is to create a brand that promotes sustained investor confidence and simplifies our go-to-market strategy. By combining to create Reward Properties, we have discrete but complementary capabilities, and we are delighted to be on a journey together, building a new venture which we believe offers something quite compelling to investors.
'We are proud to have Skybound Capital on board as our strategic debt funding partner. The company’s solutions-oriented approach enables us to develop tailored real estate offerings, while our focus on the Portuguese residential sector allows our clients to enjoy greater portfolio diversification. We look forward to working with Skybound Capital to identify even more unique opportunities for our clients.'
John Rabie, founder and Chairman of Neworld, added: 'Following the success of our initial partnership, it made strategic sense for us to commit to a joint destiny and to create a new offer that combines our skill sets, joint resources, technical expertise, and access to markets - all of which add great value for our international investors, especially those who might be buying property internationally for the first time.
'There is no doubt that Portugal is a remarkably beautiful country, and having recently undergone a major infrastructure upgrade, our investors have access to extremely favourable interest rates, as well as rental guarantees and attractive purchase prices.'
