Adaptive Reuse and Repositioning of Underutilized Buildings in Portugal

Disclosure. For US accredited investors under Reg D 506(c). Informational only; not an offer. Any commitment requires accreditation verification, KYC/AML, and execution of definitive documents. Targets are estimates. Capital is at risk.

Adaptive Reuse and Repositioning of Underutilized Buildings in Portugal

Portugal has a lot of idle stock with good bones and messy histories. We buy the ones with clean title, fix the parts that matter, and lease to tenants who can actually pay. The play is simple: price the risk up front, get permits moving early, lock the works, and keep USD payouts steady with a clear FX policy.

Focus: Lisbon plus prime secondaries Use cases: mixed-use, street retail, multifamily conversions Share classes: USD-hedged and USD-unhedged Reporting: monthly project dashboards

1) Deal Snapshot

Item Outline
Asset profile Underutilized or vacant buildings with sound structure, legal clarity, and obvious upside from works and leasing.
Value plan Core systems (MEP), envelope, fire/life safety, accessibility, rational unit plans, clean retail boxes at grade.
Permit strategy Scope mapping, pre-file QC, heritage coordination where needed, realistic timing bands with buffers.
Debt approach Tenor matched to works and lease-up; fixed-price or GMP contracts preferred; layered contingency.
Taxes & fees IMT + stamp at purchase; IMI annually; potential rehab VAT treatment in eligible ARU/ORU projects if criteria are met.
Exit routes Hold for income, condo sell-down, or portfolio sale when the spread is worth taking.

2) Sourcing Filters

  • Streets with proven footfall and transit, not “pretty but empty.”
  • Structures with fixable issues and no hidden co-owner traps.
  • Retail frontages that fit daily-needs operators or strong F&B groups.
  • Condo assemblies where the voting math is in reach.

Hard no: short-term rental dependency, hero rescues priced like trophy assets, and files that scream litigation.

3) Permits and Heritage

  • Path on paper: what approvals are needed, who signs, expected ranges, and escalation paths.
  • ARU/ORU checks: confirm eligibility before you count any VAT breaks.
  • Neighbor strategy: build the votes early; avoid last-mile surprises.

4) Technical Due Diligence

  • Targeted invasive surveys on structure and MEP where risk is high.
  • Envelope, moisture, acoustic, and thermal checks so finishes last.
  • Fire and life safety designed up front to avoid rework.
  • Seismic flags addressed with clear cost/benefit logic.

5) Capex Control

  • Three comparable bids minimum with line-item BOQs and retentions.
  • Fixed-price or GMP where possible; tight change-order rules.
  • Draws tied to inspections; invoice assurance before release.
  • Contingency stacked across design, construction, and owner.

6) Leasing Plan

  • Street retail: daily-needs anchors, clinics, pharmacies, and bankable F&B; unit sizes that actually trade.
  • Multifamily: rational 1BR/2BR mixes, liveable sizes, good light; outdoor space priced into rents.
  • Execution: 30/60/90 sprints tracked weekly (outreach, tours, LOIs, signed).

7) Taxes and Costs (Headlines)

  • Acquisition: IMT and stamp duty are day-one cash items.
  • Holding: IMI annually; modeled in base cases.
  • Works: rehab VAT treatment may apply in ARU/ORU zones if conditions are met. We verify before closing.

8) FX Policy and Share Classes

  • USD-hedged: rolling forwards on forecast EUR cash flows; carry and roll cost disclosed.
  • USD-unhedged: direct EUR exposure for investors who want the swing.

9) Risks (No Fairy Tales)

  • Permits can slip or add conditions.
  • Hidden defects despite surveys; contingency is not infinite.
  • Leasing may lag; tenant credit can turn.
  • FX can hit unhedged payouts; liquidity is periodic.

10) Process and Eligibility

  • Confirm accredited status under Reg D 506(c) — verification required.
  • We share the PPM, structure chart, model, pipeline, and risk factors.
  • Sign subs; fund on the call date; reporting starts on day one of works.
  • Distributions start after stabilization per class terms.

Want disciplined exposure to adaptive reuse in Portugal with tight capex control and USD share classes? Email us to request the pack or start accreditation.

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Disclaimers

  • Not an offer or solicitation. Any offer is made only through definitive documents.
  • Targets are estimates. You can lose capital.
  • Eligibility is required before any materials are shared.

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