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SPX Reinforces in Algarve with 850 Beds in Quinta Do Lago

October 22, 2021 – Ana Custódio

SPX has finalised a deal with CGD, boosting its presence in the Algarve.

After acquiring the prestigious tourist-residential complex The Keys, SPX – International Asset Management has completed another transaction in the region, this time for two plots of land in the exclusive Quinta do Lago development. The sales by Caixa Geral de Depósitos involves mortgage loans secured by two plots of land, occupying a total area of 7.6 hectares, for real estate development within the resort.

The land for tourist-residential use, given as a guarantee for the acquired mortgages, adds a construction potential of 45,600 m2 (28,200 m2 +17,400 m2) to the 45,000 m² SPX already owns in this complex in Almancil. Added to the other 72 residential units it is selling in The Keys, the investor will now have the possibility to create 850 new beds.

With an above-ground construction potential of 28.200 m2, enough for up to 500 beds, the plot designated AL1 is located in the northern part of Quinta do Lago. Next to the multisports complex “The Campus” is plot ET3, with a construction potential of 17,400 m2 and 350 beds.

JLL again provided support for SPX throughout the process, providing buy-side advisory, and commercial and technical DD, valuation and development strategy services. SPX also counted with the help of Morais Leitão’s legal team, coordinated by partner João Torroaes Valente from the Corporate Real Estate department.

According to Gonçalo Santos, Head of Capital Markets at JLL, “this deal highlights investors’ continued interest in the Portuguese resort market, where over the last twelve months, several hundred million euros have already been invested in the acquisition of assets for development. Having entered the Portuguese market with an initial investment of over 95 million euros in acquiring The Keys, with these new acquisitions SPX definitely becomes a key name in this industry in Portugal and in Quinta do Lago in particular, which, as this operation confirms, has been at the top of investors’ list for almost five decades in the Algarve.”

Translation: Richard D K Turner