119
119

The Central House Acquires Its First Asset in Portugal

October 15, 2021 – Ana Custódio

The acquisition is in line with the company’s investment strategy in real economy projects.

The Central House, through the Hostel Experience Europe Fund, FCR, created two years ago by Orienta Capital, has acquired a hostel in Porto’s historic centre.

This way, the independent property consulting company is following its investment strategy in real economy projects. In this case, it is a modern concept of tourist accommodation located in prime locations, designed for all types of public and offering a wide range of activities and experiences to its guests.

The project aims to make the chain a leader in Spain and Portugal for this type of tourist accommodation and position itself among the top in Europe. Planned investments exceed 120 million euros in five years, including the acquisition of assets (land, buildings for refurbishment, old hotels, turnkey projects, buying companies, etc.) and the management or long-term leases, with the goal of operating between 10-15 establishments in major cities in Spain and Portugal.

FCR currently has hostels in Madrid and now in Porto. The new asset is located in the popular Ribeira district, declared a UNESCO World Heritage Site. It will be managed under The Central House brand. With a surface area of about 2,700 m2 and 200 beds, it is scheduled to open in the first months of 2022. The Citynizer Plaza restaurant will complement the establishment’s accommodation offer and leisure concept.

If this pace of investment is maintained, the company will soon welcome new investors interested in this niche market that contributes significantly to the economic and tourism recovery. This is a less traditional alternative investment, but Orienta Capital believes that investing in these assets is key to building its clients’ portfolios. “These projects de-correlate portfolios from financial markets and bring returns to the investor, while contributing to the economic development of the area in which they are located,” Orienta Capital concluded in a statement.

Translation: Richard D K Turner