Discover Villas d’Água Resort, one of the assets of the VIDA Investment Fund, which is focused on the Portuguese tourism market and is directly involved in complete and sustainable hotel services.
Villas d’Água in the Algarve, a resort in the crowded Portuguese Algarve, brings unprecedented investment potential.
Find out all the details in this article.
Have a good read.
Get to know the VIDA Fund and investment in the hotel sector in Portugal
The VIDA Fund is a venture capital fund focused on the requalification and valorization of undervalued hotel developments in Portugal, transforming them into high-yield investment opportunities.
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Strategy
The VIDA fund’s specialization in the hospitality market is part of a strategy aimed at taking advantage of opportunities in markets with great tourist appeal.
The Algarve, in particular, stands out for its high popularity among international tourists and a consistent occupancy rate, factors that provide a favorable environment for the appreciation of the hotel assets under the fund’s management.
Justification for investing in Portugal
Portugal has emerged as one of Europe’s most attractive destinations for real estate and hotel investments. In addition to offering a relatively low cost of living, the country has a robust health and education infrastructure, as well as a secure and stable economic environment.
Furthermore, the favorable climate and more than 3,000 hours of sunshine per year make Portugal an ideal place to live and invest, adding quality of life to the financial component of the investment.
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The VIDA Fund: structure, operation and expected return
To understand the potential of the VIDA Fund, it is essential to analyze its capital structure, operating methodology and the advantages it offers investors.
Fund structure and life cycle
VIDA is a closed-ended venture capital fund with a seven-year life cycle, during which it seeks to acquire, renovate and operate hotel developments in order to maximize returns for investors.
With a fundraising target of €20 million, the fund offers investment opportunities starting at €200,000, and from €500,000 the amount qualifies for the Golden Visa, providing benefits beyond the direct financial return.
Return expectations
The VIDA Fund stands out for offering an attractive return to its investors, with a projected internal rate of return (IRR) of 22%.
The projects under the management of the VIDA Fund have the potential to increase revenue by up to 2.5 times, mainly through strategic leverage and the acquisition of assets at reduced prices, the result of local partnerships that guarantee significant discounts. This approach maximizes the value of the portfolio and contributes to the appreciation of investments.
Golden Visa eligibility through the VIDA Fund
Investments starting at €500,000 in the VIDA fund qualify the investor and their family for Portugal’s Golden Visa, allowing access to residency and, eventually, citizenship after five years.
In addition to the minimum investment amount, applicants need to prove the lawful origin of the funds, maintain the investment for a minimum period of five years and meet the minimum stay requirement of 14 days every two years in Portuguese territory.
Eligibility also includes the possibility of extending the benefits to immediate family members, such as spouses and dependents, providing a comprehensive solution for family relocation.
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Sustainability and differentiation in repositioning
The VIDA fund integrates sustainability practices into its interventions, using locally produced materials and incorporating ecological solutions to make the Villas d’Água asset a model of responsible tourism. This approach meets a growing demand for sustainable practices and gives the development a distinctive edge.
Villas d’Água: a strategic asset of the VIDA Fund
Understanding how the VIDA Fund works allows us to delve deeper into the analysis of one of its most promising assets: Villas d’Água, a resort located in the Algarve that has undergone a significant recovery and repositioning process.
Acquisition and recovery of Villas d’Água – Context of the acquisition
Villas d’Água is a resort located by the sea, on the Algarve’s Costa Dorada, which has been in existence for more than two decades.
Aerial view of Villas d’Água resort
Villas d’Água in Portugal Algarve
Resort apartment
In 2019, the resort faced financial difficulties due to the illness of the main administrator, culminating in the auction of the asset by the creditor bank. The VIDA Fund stepped in, acquiring the resort without competition and securing an excellent opportunity for appreciation.
The total investment was €11.1 million and the leverage was 50%.
Recovery and improvement process
Villas d’Água’s revitalization process was structured in two phases.
The first phase, completed in 2024, covered the complete renovation of the existing units, including the installation of modern kitchens and high-quality furniture.
The second phase, scheduled for 2025, aims to expand the amenities available, adding a restaurant, beach club, spa and gym, consolidating the resort as a luxury option in the region.
Before and after the restructuring of the resort:
Strategic location in the Algarve
Villas d’Água is located in Olhos de Água, in the Algarve, just 25 minutes from Faro International Airport and two hours from Lisbon Airport. In addition, its proximity to Vilamoura, one of the Algarve’s most exclusive tourist destinations, gives the resort a privileged location in terms of accessibility and attractiveness.
Olhos de Água, Algarve – Villas d’Água location
Benefits of its location on the Costa Dourada
Surrounded by a lush pine forest on Portugal‘s Costa Dourada, and with direct access to white sandy beaches surrounded by red cliffs, Villas d’Água offers a unique experience of privacy and exclusivity. These natural features, combined with the luxury of the accommodation, create a differentiated value proposition for the high-end tourism market.
Privileged location in the Algarve
Features and amenities of Villas d’Água
Area and accommodation
With a total area of 34,640 m² and 37 completely renovated units, Villas d’Água offers accommodation that combines modern design with spacious and comfortable spaces, meeting the expectations of guests looking for a high standard experience.
Leisure facilities and experience
The resort has a swimming pool, concierge service, exclusive access to the beach and a gym. In addition, a spa will be added in the second phase of renovation.
This infrastructure has been designed to meet the requirements of the most sophisticated guests, guaranteeing a leisure and relaxation experience.
Exclusive access to the beach and communal areas
Guests at Villas d’Água have direct access to some of the region’s most beautiful beaches, as well as to living areas carefully designed to promote relaxation and integration with nature. These amenities reinforce the resort’s exclusivity, making it a destination of choice for those seeking comfort and privacy.
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Benchmarking and return expectations in the hotel market
The strategic repositioning of Villas d’Água aimed to place it among the Algarve’s leading luxury resorts, providing a positive benchmark and excellent return prospects for investors.
After the repositioning, Villas managed to raise its average rate during the high season from €150 to €350, positioning itself alongside renowned luxury resorts such as Pine Cliffs and Epic Sana Algarve.
