MASANA: Investment in the Algarve through the VIDA Fund

Get to know the VIDA Fund and investment in the hotel sector in Portugal

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The VIDA Fund is a regulated venture capital fund focused on the requalification and enhancement of undervalued hospitality assets in Portugal. These are transformed into high-performing operations offering solid returns and access to EU residency through the Golden Visa program.

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Strategy

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VIDA specializes in the hospitality sector in tourism-driven locations like the Algarve. The region is known for its strong international tourist appeal and high year-round occupancy, offering favorable conditions for hotel asset appreciation.

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Why invest in Portugal

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Portugal stands out as one of the most attractive destinations in Europe for real estate and hospitality investment. It combines a stable economy, secure environment, world-class infrastructure, and more than 3,000 hours of sunshine per year.

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Investors also benefit from Portugal’s public healthcare and education systems, and the lifestyle appeal is enhanced by access to the EU.

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The VIDA Fund: structure, operation and expected return

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To understand the potential of the VIDA Fund, it is essential to analyze its capital structure, operating methodology and the advantages it offers investors.

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Fund structure and life cycle

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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.

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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.

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Return expectations

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The VIDA Fund stands out for offering an attractive return to its investors, with a projected internal rate of return (IRR) of 22%.

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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.

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Golden Visa eligibility through the VIDA Fund

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From €500,000, investors qualify for the Portugal Golden Visa. This grants:

• Residency rights in Portugal
• Visa-free travel across the Schengen Area
• A path to Portuguese citizenship and a European passport after 5 years
• Family inclusion (spouse and dependents)
• Minimal stay: only 14 days every 2 years

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Applicants must prove lawful fund origin, maintain the investment for 5 years, and meet the stay requirements. The Golden Visa offers a powerful combination of lifestyle, mobility, and security.

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Acquisition and recovery of MASANA – Context of the acquisition

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MASANA is a beachfront resort in Olhos de Água, Algarve. It operated for over 20 years until the illness of the previous owner led to financial distress and a creditor bank auction in 2019. VIDA acquired the asset with no competing bids.

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The total investment reached €11.1 million, with 50% leverage. The fund saw a clear opportunity for appreciation through full repositioning.

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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.

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The total investment was €11.1 million and the leverage was 50%.

Recovery and improvement process

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The repositioning is structured in two phases:

• Phase 1 (completed 2024): Full renovation of units with modern kitchens and high-end furniture
• Phase 2 (completed 2025): Expansion of amenities including restaurant, beach club, spa, and gym — transforming MASANA into a high-end destination

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Before and after the restructuring of the resort:

Strategic location in the Algarve

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MASANA is located 25 minutes from Faro International Airport and 2 hours from Lisbon. It's also near Vilamoura, one of Portugal’s most exclusive tourist areas. This enhances its accessibility and appeal to global investors and travelers.

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Benefits of its location on the Costa Dourada

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Surrounded by a lush pine forest on Portugal‘s Costa Dourada, and with direct access to white sandy beaches surrounded by red cliffs, MASANA 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.

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Features and amenities of MASANA

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Area and accommodation

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With a total area of 34,640 m² and 37 completely renovated units, MASANA offers accommodation that combines modern design with spacious and comfortable spaces, meeting the expectations of guests looking for a high standard experience.
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Leisure facilities and experience

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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.

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This infrastructure has been designed to meet the requirements of the most sophisticated guests, guaranteeing a leisure and relaxation experience.

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Exclusive access to the beach and communal areas

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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

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The strategic repositioning of MASANA aimed to place it among the Algarve’s leading luxury resorts, providing a positive benchmark and excellent return prospects for investors.

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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.

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From Hospitality Returns to European Residency

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At VIDA Capital, we align returns with long-term mobility goals.

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Our regulated hospitality fund turns capital into operating assets like MASANA.

• Access to institutional-grade hospitality in prime Algarve locations.
• Competitive, defensible returns through an owner-operator model.
• A clear pathway to EU residency and EU citizenship.

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MASANA proves this approach. We buy well, renovate with discipline, and operate for durable cash flow.

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Ready to Explore VIDA’s Hospitality Strategy?

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Email us at rita@vida-cap.com or chat with us on WhatsApp +351 914 368 116.