Information is for discussion only and is not an offer to buy or sell securities. Figures draw on sources such as Idealista, Confidencial Imobiliário and ANA Aeroportos, current to July 2025.
Lisbon Real-Estate Syndicate — Buy • Rehab • Refi Strategy for 7 %+ Cash Returns
Azulejo Capital aggregates under-priced residential blocks across Lisbon, executes targeted upgrades, then refinances or sells individual units once rents stabilise. Our latest cycles have produced cash yields north of 7 % and IRRs in the low teens, supported by a vacancy rate below 1 %, median pricing at € 5,720 /m² (Idealista) and senior debt margins around Euribor + 1.9 %.
Guide Navigation
1. Market Opportunity
• Median asking prices tripled since 2014 yet renovated supply still lags demand (Idealista).
• Core-district vacancy sits below 1 % despite rent-cap debates (Confidencial Imobiliário).
• Passenger arrivals hit 34 million in 2024, a record underpinning mid-term rental and hospitality demand (ANA Aeroportos).
• Positive leverage remains: senior financing at Euribor + 1.9 % beats stabilised yields of 7 %+.
2. Our Strategy
- Acquire — Off-market walk-ups and light-industrial shells below € 4,500 /m².
- Rehab — Mechanical, seismic and façade upgrades at € 700–1,100 /m².
- Refi / Exit — Refinance at 60–65 % LTV once cash flow seasons, or dispose of strata units individually to release equity.
3. Focus Neighbourhoods
Area | Why We Like It | Typical Entry € /m² | Gross Yield |
---|---|---|---|
Marvila River Tech Corridor | Warehouse-loft conversions, creative offices, future metro stop | 2,600–3,200 | 7–8 % |
Graça & Penha Hilltops | Historic façades, panoramic views, rapid tourist footfall | 3,900–4,400 | 6–7 % |
Alcântara & Santo Amaro | Riverfront leisure, LX Factory influence, new tram link | 4,000–4,800 | 5–6 % |
Ajuda University Belt | Student demand, micro-unit potential, rental by the room | 3,300–3,800 | 6–7 % |
4. Performance Snapshot
Neighbourhood Cluster | Avg. Cash Yield | Avg. Equity Multiple | Status of Holdings |
---|---|---|---|
Hilltop Heritage (Graça / Penha) | 7.1 % | 1.6 × | Stabilised & refinanced |
River Tech (Marvila) | 7.4 % | — | Under redevelopment |
Creative Belt (Alcântara / Santo Amaro) | 6.0 % | 1.5 × | Partially exited |
5. Investor Terms
Term | Detail |
---|---|
Target Raise | € 18 million |
Minimum Commitment | € 150,000 |
Preferred Return | 7 % p.a. cash-on-cash, paid quarterly |
GP : LP Split | 20 : 80 above 8 % IRR hurdle |
Target Hold | 3–5 years |
Projected Exit IRR | 11–13 % |
6. Key Risks
• Ongoing freeze on new short-let licences in heritage zones.
• Rate volatility on floating-rate debt.
• Exit liquidity above € 1 million: average closing time hovers around seven months.
Ready to discuss the full deck? contact@fgcapitaladvisors.com