Key Terms – FG Capital Advisors

Key Terms: Lisbon Residential Real Estate (Delaware Feeder → Portugal HoldCos/SPVs)

Indicative focus, structure, and investor terms for single-family and multifamily acquisitions, renovations, and repositioning in Lisbon.

Strategy Pillars

  • Buy below replacement cost
  • Capex and compliance upgrades
  • Lease-up and NOI growth
  • Target LTV: 55–65% at stabilization

Deal Metrics

  • Min. investment: $250,000
  • Deal size: €2m–€20m
  • Hold: 3–7 years depending on strategy
  • Target IRR: 10–14% net

Core Prime

Estrela Lapa, Príncipe Real, Avenidas Novas, Alvalade, Campo de Ourique.

Growth Corridors

Marvila Beato, Alcântara, Arroios, Penha de França, Graça.

Family & Newer Stock

Parque das Nações, Lumiar Telheiras, Benfica.

Projected Returns

  • Net IRR: 10–14%
  • Cash yield: 5–6%
  • Equity multiple: 1.6x–2.0x
  • Hold horizon: 5–7 years
Investment Focus Lisbon residential real estate, single-family and multifamily. Outright acquisitions, value-add renovations, repositioning, and condo block buy-outs where feasible.
Offering Structure
  • Issuer: Delaware SPV (LLC or LP) as feeder and holding entity.
  • Operating Subsidiaries: Portugal holdco with property-owning SPVs and a Portuguese property management subsidiary.
  • Use of Proceeds: Equity for acquisitions, capex, fees, working capital, and reserves.
Investment Strategy
  • Buy-to-Rent: Acquire below replacement cost, execute capex, stabilize, and hold for income.
  • Fix-and-Hold / Fix-and-Sell: Interior/common-area upgrades, compliance works, and lease-up.
  • Repositioning: Layout improvements, energy upgrades, NOI growth subject to permits.
  • Leverage: Senior bank debt at asset level targeting 55–65% LTV at stabilization.
  • Hold Period: 3–5 years (reno/sell) or 5–7 years (income holds).
Investment Security
  • Jurisdictions: US issuer under Delaware law; Portuguese subsidiaries under Portugal law.
  • Title and Closing: Public deed and registration at Conservatória do Registo Predial; escrow or notary trust accounts for funds release.
  • Controls: Third-party valuation, technical due diligence, drawdowns tied to work progress.
Capital Calls & Currency Subscriptions pay in USD to the Delaware SPV. The SPV converts to EUR for acquisitions. FX hedging may be used at the manager’s discretion.
Minimum Investment $250,000 per investor indicative. Typical deal sizes €2 million to €20 million.
Projected Returns Value-add targets net IRR 10%–14% with 5%–6% stabilized cash yield, aiming for 1.6x–2.0x equity multiple over 5–7 years. Results depend on entry price, scope, leverage, and exit.
Fees Management fee and performance fee with an 8% preferred return. Deal-level acquisition and asset management fees may apply. Full schedule in the offering documents.
Distributions & Tax Standard private equity real estate waterfall with return of capital, preferred return, and catch-up. US investors receive a Schedule K-1. Tax treatment varies by investor.
Eligibility & 506(c) Verification
  • US Accredited Investors only: As defined in Rule 501(a).
  • Rule 506(c) offering: General solicitation permitted. Each subscriber must complete independent accreditation verification before acceptance.
  • Verification methods: Third-party verification service or licensed attorney/CPA letter, plus income or net-worth documentation as required.
Participation & Transfers Interests are offered and sold only to verified US Accredited Investors. Transfers are restricted. No sales to non-accredited investors.
Reporting & Governance Quarterly updates on assets, capex, rents, and financing. Annual audited financials when available. Material decisions require manager approval per LLC or LP agreement.

Important disclosures: This summary is for information only and is not an offer to sell or a solicitation to buy any securities. Any offer will be made only to US Accredited Investors under Regulation D Rule 506(c) and only through the private placement memorandum, subscription documents, and governing agreements. General solicitation may occur, but no subscription will be accepted until accreditation is verified to the Rule 506(c) standard. The securities are not registered under the Securities Act of 1933 or any state securities laws. Interests are subject to restrictions on transfer and resale. Investing involves risk, including loss of principal. Past performance does not predict future results. Prospective investors should consult their legal, tax, and financial advisers. The Delaware SPV will hold equity in Portuguese subsidiaries that own and manage the properties in Portugal.

About Us

Azulejo Capital, LLC connects accredited US investors to carefully selected, institutional-quality real estate opportunities in Portugal. Specializing in both residential and commercial properties located in dynamic markets such as Lisbon, Porto, and the Algarve region, our experienced team leverages extensive local knowledge and proven investment strategies to deliver attractive, risk-adjusted returns and capital appreciation potential.

Disclaimer

Azulejo Capital, LLC offerings are available exclusively to accredited investors under SEC Regulation D Rule 506(c). Investments in real estate carry inherent risks, including potential loss of invested capital; investors should thoroughly evaluate these risks and consult professional advisors before investing.

Contact Email: invest@azulejocapital.com