King Street Capital Management and Kronos Homes, in a joint venture, have just announced the finalisation of the sale of Palmares Ocean Living & Golf to funds managed by Arrow Global. As announced in September, developer Kronos Homes was in advanced negotiations with Arrow Global to sell the luxury development located in Lagos, Algarve.
The investment was made through funds managed by Arrow Global, with the combined investment (acquisition and future development) totalling around 400 million euros. "This investment represents a significant step forward in our Hospitality strategy in Portugal, particularly for the Algarve region. We are very pleased with the success of the deal and believe that we will continue to contribute to the growth and development of the national hospitality and tourism sectors", explains John Calvão, Principal of the Arrow Global Funds.
The assets include 200 hectares of land, located between the Alvor estuary and Lagos. Key assets include a 5-star boutique hotel, a 27-hole golf course, a clubhouse housing the AL SUD restaurant (Michelin star), 40 plots for the construction of villas and 12 plots for development, namely for the construction of 310 luxury flats and a 5-star hotel with 152 rooms.
Francisco Moser, CEO of Hospitality at Arrow Global Portugal considers that "The investment in Palmares Ocean Living & Golf is particularly significant, given the importance of the hospitality and tourism sectors for the Portuguese economy. These nationally recognised assets are an important addition to our portfolio and we are very excited about the potential developments in the future."
João Bugalho, CEO of Arrow Global Portugal, said: "This investment complements Arrow's recent strategic investments in Portugal. This includes our investment in major assets in Vilamoura, such as the Vilamoura Marina, the equestrian and sports centre, land, the prestigious Dom Pedro and Hilton hotels, as well as five premium golf courses. The introduction of direct flights from the USA to Faro in 2024 will help increase the visibility of our hospitality and leisure assets in Portugal, which is a prime opportunity for us."
King Street and Kronos Homes acquired the development in 2017. At the time, the resort only included the golf course and boutique hotel. Since the launch of a masterplan for the resort in 2019, the joint venture has developed the new Clubhouse. "We are thrilled to announce the successful sale of Palmares. This milestone represents the culmination of years of hard work and dedication from our team and we are confident that Arrow Global will capitalise on the resort's legacy, taking it to even greater heights," says Paul Brennan, Co-CEO of King Street Real Estate.
The property component also progressed rapidly under the management of Kronos Homes, with more than 80 flats developed. The first phase of Signature Apartments and Signature Villas sold out ahead of schedule. The second phase of Signature Apartments is under development, with most of the units already sold. In addition, 60 per cent of the Palmares plot for luxury villas has been sold.
"Kronos Homes has positioned Palmares as one of the Algarve's most emblematic luxury developments. At the same time, it has set a new standard in avant-garde architecture. We are extremely proud to pass on this unique project to a new investor, who will complete the next chapter in the Palmares story," emphasises Saïd Hejal, Founder and CEO of Kronos Real Estate Group.
The process was managed by Norfin Serviços, a subsidiary of Arrow Global. Francisco Sottomayor, Norfin's CEO, guarantees that "We are very pleased to have participated in this transaction, a significant milestone in Norfin's commitment to developing new capabilities in hospitality and tourism."
