RE Capital, the independent European real estate investment firm, is expanding its residential development programme in Portugal.
Co-founder and CEO Newman Leech said the company is eyeing four further development projects in Lisbon, Melides, and the Goldon Triangle of the Algarve capable of providing 366 apartments and villas.
RE Capital’s Portugal team believes that if all the schemes come to fruition, a total of 200 out of the 366 residential units could be for rent rather than sale.
Some of the developments could include retail as part of a mixed- use strategy.
Olivier Hezelot based in Lisbon for RE Capital, said Portugal continued to attract investors, partly helped by well-developed infrastructure, a sound transportation system, and high employment rates.
Leech added: ‘With its accessible location, great weather and golden beaches, as well as thriving art and dining scenes, Portugal has always been a popular choice for second homeowners. It’s also historically been an incredibly attractive option for non-resident investors because of its favourable tax and residency programmes. As flexible working becomes the norm for thousands of employees across Europe, the demand from potential buyers has already surged to new heights.’
RE Capital, formerly known as GMG Real Estate (GMGRE), has assets of €700 mln and rebranded at the start of the year after Leech and global wealth manager, Skybound Capital, formalised a buyout.
Leech and business partner Dave Elzas founded GMGRE several years ago as a privately owner investment and development company.
Upon the buyout, Leech and the management team said the firm would continue to focus on its portfolio and capitalise on a JV with property developer Jamie Rabie’s offshore real estate company, Neworld, which operates in Portugal. Together, they have plans to expand more into the UK.
In addition, GMG Institutional Asset Management is mandated as an asset manager in a newly formed Luxembourg partnership structure established by RE Capital to house specific development projects.
RE Capital has offices in Geneva, Lisbon, and London. In May, it completed the acquisition of a 29,174 ft2 office building, 20 Queen Elizabeth Street, in Southward for £15 mln (€17 mln), which it is busy letting up. Simon Banks is RE Capital’s executive in the UK. Ben Robinson is senior investment manager.