European property manager Arrow Global has just announced the acquisition of Estalagem da Cegonha, a unique and historically significant asset in Vilamoura, in a 90 million euro investment that includes the refurbishment of the tourist and residential accommodation space.
The 16th century building, once visited by kings and poets such as Dom Sebastião and Luís de Camões, will become a luxury boutique hotel. The deal includes two plots of land: the first, with qualified buildings, will house a 40-room boutique hotel (main building) and 76 holiday homes. The second plot will be used to build 21 villas.
"Estalagem da Cegonha is an emblematic building in Vilamoura, but also in Portugal. We believe that the building and the land that forms part of it have enormous potential and, for this very reason, we have a unique project for this magnificent infrastructure that is five centuries old," says John Calvão, Principal of the Arrow Global Funds.
The asset was sold by Discovery Portugal Real Estate Fund, following its ongoing divestment plan. Estalagem da Cegonha benefited from active management initiatives in terms of urban planning and licensing, which together contributed decisively to the property's strong appreciation in value.
The acquisition process was managed by Norfin Serviços, a Portuguese asset manager and subsidiary of Arrow Global. Francisco Sottomayor, Norfin's CEO, reveals that "over the last three years we have participated in asset acquisition processes such as this one for Arrow's funds. These are important projects for the country, which makes us very satisfied with the work of our teams. We remain committed to contributing to the development of the region, as well as the Hospitality and Residential sector in Portugal."
"The grounds of Estalagem da Cegonha are particularly important because it is the manor house of the former morgado of Quarteira, acquired in the late 60s of the last century by Cupertino de Miranda, seen as the first visionary of Vilamoura," says João Bugalho, CEO of Arrow Global Portugal.
For his part, Francisco Moser, CEO of Hospitality at Arrow Global Portugal, explains that "due to its location, opposite Natura Village, one of the projects under development by Vilamoura World, and very close to the golf courses, as well as the equestrian centre and the Vilamoura International College, the five-star boutique hotel and the entire project will consolidate the north-western area of Vilamoura and attract a new segment of premium tourism".
"Explorer Investments acted as Investment Advisor to the Discovery Portugal Real Estate Fund, which with this transaction surpasses the 100 million euro barrier in accumulated sales. It was another successful operation that contributed to creating value for the Fund's investors," emphasises José Tiago Silva, Partner at Explorer Investments.
