Almost a year ago, on November 3, 2020, the deadline for submissions of proposals to acquire The Keys, a real estate project owned by the bankrupt The Birchview and in which CGD had credits of €307 million, expired. . The insolvency official registered and awarded the process to the only person received – SRESPX, a company owned by Brazil’s SPX Capital, which offered €10 over the minimum price of €95.41 million.
In the process, the buyer had the right to purchase secured mortgage credits giving access to two other plots of land, totaling 77,000 square metres, for real estate development, also in the vicinity of Quinta do Lago, for an amount then set at €54.5 million.
However, in a process also advised by JLL, this real estate consultant has just announced that “having become the owner of the prestigious residential tourist complex The Keys, SPX – International Asset Management, has entered into a deal with Caixa Geral de Depósitos to enhance your presence in exclusive Quinta do Lago” .
JLL asserts that “the mortgage loans are secured by two real estate development plots occupying a total area of 7.6 hectares within this Algarve resort,” without disclosing the value for which SPX obtained these assets from CGD.
Intended for tourist and residential use, the land given as security for the mortgage loans acquired “adds to a construction potential of 45,600 square meters to the 45 thousand square meters already owned by SPX in this complex in Almancil, with the potential for 850 new beds to join the 72 other housing units it is promoting in The Keys”, reveals the same company.
Also according to JLL, “The AL1 designated area is located in the northern part of Quinta do Lago and offers a construction potential of 28,200 square meters above ground and up to 500 beds construction, while the ET3 plot is located next to the mult-sports complex ‘Campus’ , with a total building potential of 17,400 square meters and more than 350 beds.”
“This transaction highlights the continued interest of investors in the Portuguese ‘resorts’ market, where, over the past twelve months, hundreds of millions of euros have already been invested in the acquisition of assets to promote,” notes Goncalo Santos, Head of JLL Capital Markets.
Entering the Portuguese market with an initial investment of over €95 million in the purchase of The Keys, with these new acquisitions, SPX has certainly become an inescapable name in the industry in Portugal and, in particular, in Quinta do Lago which, as this process confirms, is It has been at the top of the list of investors in the Algarve region for nearly five decades,” asserts the same official.
This SPX operation has also been supported in the legal field by Morais Leitão.
The Hall opened in the time of Santos Ferreira and Vara
The deal with Birchview began skewed for CGD as early as 2007, when Carlos Santos Ferreira was leading CGD and with Armando Vara as its director. First, because the bank’s general directorate of risk issued its opinion on the assumption that the bank will only finance 50% of the project, which won’t happen, as it ended up assuming 100%.
A change of plans did not go through the DG of the Republic, and no justification was given for not making that opinion, according to an EY audit. The subject of contention was the construction of a huge tourist real estate project in the Algarve, near Quinta do Lago, on land of more than eight hectares. Promoter: A relatively unknown group, run by Mark William Lenherr and Carlos Olafo Mesquita da Silva.
The initial project, which will be developed by three companies from the promotional group, will undergo several reworks, with only one of them progressing, to be implemented by Birchview. However, a feasibility study for the project to be financed by the State Bank has not been submitted.
Financially exhausted, the company joined the Special Activation Process (PER) in October 2016, but CGD decided to drop Burchview into bankruptcy, which would be issued by court decree, but later rescinded, in October 2018. The Burchview insolvency process continued its proceedings, with CGD reaching Appropriations recognized 307 million euros out of a total of 316.6 million euros.
The insolvent company went into liquidation, with The Keys going up for sale, amid an epidemic, in August last year, for 110 million euros. Without the signature of a buyer, he went to the market again, three months later, for 95.41 million euros.
It ended up closing the deal with SRESPX, of Brazilian asset manager SPX Capital, which offered €10 over the minimum fixed rate.
SPX, which simply stands for Schneider, Pandolfi and Xavier, the pseudonyms of its founders, is today one of the largest independent fund managers in Brazil, with offices in São Paulo, Rio de Janeiro, London and New York, with assets under management of 40 billion reais (6.2 billion euros).
Rogério Estevinha Xavier, the largest shareholder in SPX, is a landmark in the Brazilian financial market. Favorite song: Fix You by Coldplay.
“Wannabe internet buff. Future teen idol. Hardcore zombie guru. Gamer. Avid creator. Entrepreneur. Bacon ninja.”