Avelios has acquired two separate portfolios of touristic residential real estate in the Algarve, Portugal. The assets, comprising of 43 and 53 units respectively, have been acquired from Portuguese banks following developer repossessions in the wake of the 2010-2014 Portuguese financial crisis.
Both portfolios of assets are in secure complexes, well-located with good proximity to the coast and nearby golf-courses. Units within each portfolio are in the mid-market value range, attracting a domestic and international audience.
Due to developer insolvency, neither portfolio was fully completed and has been unoccupied since bank repossessions were made. Reflecting this, the Avelios business plan, in cooperation with a local operating partner, is to perform light refurbishment and recommissioning of the assets, preparing them for sale as individual units.
Avelios CEO, Duncan Souster, commented “We continue to like the fundamentals of the Portuguese market, as the country continues to attract new immigrant populations from Northern Europe and North America, enticed by the outstanding climate, employment opportunities in major cities and tax incentives.
It has taken banks nearly a decade to take possession of assets that became distressed during the Portuguese crisis. We have been able to acquire high quality residential portfolios from them at attractive discounts, which provides an attractive opportunity for investors.”