The chief executive of Vilamoura World, a project owned by the US venture capital company Lone Star Fund, today announced a development plan centred on the commercialisation of 18 linked projects which need a cool billion euros to be achieved.
According to Paul Taylor, the Chief Executive of the managing company, it's all about building turnkey projects including housing, leisure, tourism and retail over a 400 hectare area in the next five to seven years.
Vilamoura World now seeks funding and management is to try and sell the deal to investors in China, India, Hong Kong and Europe, and says it already is ‘in talks.’
There already are said to be several financial partners in Vilamoura, led by the Spanish bank Santander which is prepared to finance the construction of these projects and to support potential investors.
The Vilamoura masterplan was launched today and does away with the long-standing Lakeside City project replacing it with something called Vilamoura Lakes which sounds suspiciously similar.
In fact the change is one of materials with planned buildings of cement and glass being replaced with more natural materials such as wood and stone.
One of the main parts of the revised plan is construction at the outer harbour area of Vilamoura Marina where a modern structure will be situated at the marina entrance. This will be called the Yacht Club and at a cost of €20 million will include commercial space, restaurants and a gym.
A delighted economy minister, António Pires de Lima, was on show in Vilamoura today and told reporters that this major investment was part of a strategy initiated in 2013 to attract investors to Portugal i.e. he wanted some credit for the project.
There was some candour from the minister however as he commented that “when finance ministers say they will invest €1,000 million, we are suspicious. When private investors say they will invest €1,000 million, we believe them."
The plan includes a change of brand image for Vilamoura and is based on six themes: Vilamoura Marina, Vilamoura Golf, Vilamoura Active, Vilamoura Villages, Vilamoura and the Vilamoura Lakes Estate.
According to Frederico Pedro Nunes, another manager at Vilamoura World who presented parts of the plan to a rapt and carefully chosen audience, it again can be said that Vilamoura is ‘open for business’ and the project now can be marketed worldwide.
Paul Taylor estmated that Vilamoura Lakes, one of the most important assets of the plan with 1,900 residential units and five tourist developments, should begin to be built in 2017.
As for the huge environmental cost, Paul Taylor commented "the environmental impact is very heavy and we are trying to create a sustainable reserve, one that is environmentally friendly," adding quickly that this is "one of the largest real estate projects in Portugal" providing "a major boost to the Portuguese economy and to the Algarve region."
"This development project is a unique investment opportunity and will help economic recovery and the real estate market of the country" and will allowing the creation of “thousands of direct and indirect jobs.”
"It is with great pride that we take responsibility for the next phase of the transformation of Vilamoura which already is known as one of the top tourist destinations in Europe. But our masterplan has a clear mission to transform Vilamoura in the first resort of the Algarve," concluded Taylor.
Minister Pires de Lima summed up the government’s stance:
"One of the factors that has contributed to the consolidation of the Portuguese economy is the gradual increase in foreign investment, a clear sign that Portugal has regained credibility and the confidence of foreign investors. I hope that this Vilamoura project is another example of success and confidence in our country."
In April last year, environmental organisation Almargem hit back at the original Vilamoura project, believing that the government's support of Cidade Lacustre, Vilamoura, has in effect authorised the destruction of farmland, “one of the biggest and best areas of agricultural land in the Algarve" and is lodging a complaint at the European Commission.
"The Secretaries of State for Tourism, Forestry and Rural Development are fully aware of the plans to destroy the farmland but were happy that the ‘countervailing measures’ were sufficient recompense for this irreversable destruction."
For Almargem, the government's attitude is deeply flawed and does not take into account what is at stake, which is "simply the destruction of what little is left of one of the largest farms in the region, on land classified as 'Class A' farmland."
In May this year Almargem presented its objections to the Vilamoura project to the European Commission, claiming that the building works will "destroy habitats and agricultural land."
See also:
'Vilamoura Lacustre development - EC asked to intervene'
http://www.algarvedailynews.com/news/5643-vilamoura-lacustre-development-ec-asked-to-intervene
'Vilamoura Cidade Lacustre development - environmentalists fight back'
