Lone Star puts Vilamoura on sale
The business, by size, should not be completed by 2017. Among the assets that will be sold by Lone Star is the Vilamoura Marina, considered one of the business cards of the venture. CBRE returns to advise the American fund.
The Americans from the Lone Star fund have put up part of Vilamoura for sale, you know Business. The sale of assets comes after the fund bought this Algarve venture in March 2015.
As it turned out, the operation – due to its size – should not be closed until the end of 2017.
The assets included in the sale are mainly land for real estate development and the Vilamoura marina, with 825 mooring stations.
Business also knows that Lone Star is being represented by real estate consultant CBRE, with whom it has collaborated in other operations in the past. There are already interested to consult the process, one of them represented by Aguirre Newman. None wanted to comment.
The company that manages the development, Vilamoura World, and its owner, Lone Star, were also asked to clarify the sale.
Fact is that part of Vilamoura returns to the market two years after being bought by Lone Star for around 200 million euros, a value below 360 million that Catalunya Banc (owned by BBVA) had paid André Jordan for these assets .
Vilamoura has an area of 1,700 hectares. Of these, 700 thousand square meters dedicated to the construction. In addition to residential and hotel areas, there is a marina, a casino, golf courses as well as infrastructures for football and tennis.
As early as September 2015, then-CEO Vilamoura World, Paul Taylor, announced a € 1 billion investment in the project to renovate the marina’s surrounding area and develop 18 real estate projects, scheduled for completion by 2020.
In October 2016, Paul Taylor would be replaced by Juan Gómez-Vega. Now the project is delivered to Dominique Cressot, revealing the successive changes that Lone Star has promoted in the leadership of this business.
One of the 18 most outstanding works, by its size, is the Vilamoura Lakes, formerly known as the Lake City and distinguished as a Project of Potential National Interest (PIN). As you can see, this project will not be on the list of those Lone Star now wants to sell. The construction was expected to start in 2017.
This is not the first time that Lone Star Americans buy in Portugal and then alienate the assets, which is moreover their base of business. The fund acquired the shopping centers Dolce Vita Porto, Dolce Vita Douro and Dolce Vita Coimbra, and sold them in 2015 to Deutsche Bank for around 200 million. As early as 2016, Lone Star returned to the market and sold the Monumental building and one of the towers of the Torres de Lisboa complex to the Spaniards of Merlin, raising with the business more than 100 million euros.
The fund is now negotiating the acquisition of 75% of the Novo Banco, after an agreement reached with the Bank of Portugal.
A history of changing hands
It is necessary to go back to the 1960s to perceive the origin of one of the most important tourist posters in Portugal. At that time, the banker and founder of Banco Português do Atlântico, Cupertino de Miranda, bought a property known as Quinta da Quarteira to develop what he hoped to be Europe’s largest tourist development. In the 1990s, after developing Quinta do Lago, businessman André Jordan joined the Vilamoura project, eventually acquiring its entirety at the beginning of the new millennium. Four years later, in 2004, Vilamoura ceased to be Portuguese, with the sale for 360 million euros to the Spanish real estate group Prasa. With its bankruptcy, the assets were eventually integrated by Catalunya Banc, which was only able, after several attempts, to effect the sale in 2015 to Lone Star.
Source “Jornal Negócios”.