In response to numerous inquiries from potential investors, the Andre Jordan Group has appointed investment bank UBS to advise on its strategic options, including a possible sale, for its two Portuguese leisure resorts as they enter new stages of development. Vilamoura, in the Algarve, is Europe’s largest leisure resort complex; Belas Clube de Campo, is a major residential and leisure development on the outskirts of Lisbon.
Andre Jordan, the head of the Group and who created the renowned Quinta do Lago resort, commented, “The opportunity now is to capture untapped value by building and selling to the international and national retail client now demanding Vilamoura. The resort has been repositioned and as Portugal continues to grow strongly as a tourist destination and having received a number of approaches over the last 12 months, I have decided to undertake a strategic review of the business to look at bringing on board a strong partner who shares our vision of capturing the full value gained from quality and sustainable real estate development.”
Vilamoura, covering 1,650 hectares, includes 5 championship golf courses and a 1,000 berth marina. It is the largest, fully integrated resort under single management in Europe. The resort has been subject to a significant transformation programme since 1996, including 70 million euros of new investment. After obtaining full planning approval for Vilamoura’s new masterplan in 1999, the company has sold 320,000m² of construction area at an increasing pace and rates to domestic and international developers, including sites for two 5 star hotels, still leaving more than 600,000 m2 of construction to be built.
Combined with Belas Clube de Campo, covering 465 hectares, and a further 450,000 m2 of construction area for which planning approval is in its final stages, makes this Portugal’s largest land bank with planning permission. Over recent years real estate prices in the Algarve have risen substantially reflecting Portugal’s growing popularity as a leisure destination and the country’s accession to the Eurozone. The Group estimates that residential sales of the over 1,100,000 m² it holds will, over the next decade, generate in excess of 4 billion euros.
The Andre Jordan Group is the leading Portuguese real estate developer specializing in master planned communities that combine tradition, quality and, above all, respect for the environment. Founded and chaired by Andre Jordan, the Group’s first project in Portugal, in 1970, was the development of Quinta do Lago, which has over the last 30 years become the benchmark of high quality sustainable resorts in Southern Europe. In 1987 Andre Jordan sold Quinta do Lago.
In 1996 the Andre Jordan Group turned its attention towards the revitalization of Vilamoura by acquiring the holding company that controlled it, Lusotur. That same year the Andre Jordan Group launched the Belas Clube de Campo project, a championship golf and residential development located in the Sintra Hills only 15km from the center of Lisbon. Andre Jordan personally, and his projects, have received many awards, prizes and honors over his career, among which was the “Best Foreign Real Estate Developer in Tourism for 2001” by the Marbella Meeting Point, the property trade fair. He is also honorary Consul of Brazil in the Algarve.
Vilamoura is approximately 8 times the size of Monaco in terms of land area. Including five championship golf courses (the fifth, designed by Arnold Palmer, will open in Spring 2004), selling presently 180,000 rounds of golf per year, the 1,000-berth marina, 3 km of gold sand beach, 6,000 permanent residents, 38,000 beds (rising to 58,000 once the resort is fully developed), tennis centre, equestrian centre, casino, hotels, conference centres and over 150 shops and restaurants, Vilamoura attracts over 600,000 holidaymakers per year staying on average 7-10 nights generating 4-5million bed nights per year, with a further 500,000 day visitors.
The resort was first established in 1966, and rapidly became one of the cornerstones of the Algarve’s golf and tourism boom through the 1980s. However, by the mid-nineties the business had begun to suffer from under-investment and was acquired by The Andre Jordan Group, the original developers of Quinta do Lago.
A significant revitalization and transformation programme was successfully introduced focusing on global environmental, quality and sustainable development. In the 8 years from 1996 till 2003, this has included the upgrading of the 3 existing golf courses, the building of 2 new courses, refurbishment and construction of clubhouses, upgrading the marina facilities, building of new beach restaurants, bars and facilities, establishment of a nature park, the introduction of park-and-ride schemes as well as a comprehensive programme of improvements to landscaping, the roads, sidewalks and bike paths in and around Vilamoura.
All these initiatives along with the introduction of advanced management controls and systems have resulted in an upgrading of the investor and visitor mix and in sustained growth in all activity and value indicators. The resort has also earned a number of awards for its approach to the environment including being the first golf operator in Europe, first marina operator in Iberia as well as the first beach operator in the World to have its environmental management systems certified to the internationally recognized ISO 14001 Standard.
Since the Group’s arrival, the development of the real estate portfolio has been continued but under strict quality control. It is this portfolio that represents the main investment opportunity. Of the 950,000 m² of land granted planning permission, 320,000 m² has been sold over the past 6 years. Up to 5,000 units remain to be developed. The average price for an apartment has risen from 750 euros per m² in 1997 to over 3,000 euros per m² in 2003.
Belas Clube de Campo (“Belas”) is a residential development and championship golf course situated in the Sintra Hills, 20 minutes from the center of Lisbon and from the airport. Since 1997 when the first residents moved in, it has become very popular with young executives as well as growing families.
It comprises a mix of apartments, townhouses and large detached villas. Facilities include a comprehensive clubhouse, swimming pools, sports centre with soccer field, tennis courts, a Kid’s Club, small supermarket and bike paths. There are now nearly 1,000 residents. A 5 star, 140-room hotel with spa and meeting facilities will begin construction in 2004 and will be completed with a medium size 12,000m² office and shopping complex. Phase 1 has sold 85% of construction area and phase 2 has third sold. Phase 3, the largest of all, with 1,600 units, is awaiting planning approval.
Vilamoura www.vilamoura.net Belas Clube de Campo www.belasgolf.com
Further information from:
UBS Jason Katz, Head Of European Leisure Sector Tel: +44-20-7568-2420
jason.katz@ubs.com
Antonio Varela, Investment Banking, Portugal Tel: +351-21-319- 3510
antonio.varela@ubs.com