Sonae Sierra and PGIM Join Forces to Invest €60 Million in Luxury Resort in Algarve
Jornal De Negócios6 days ago
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Sonae Sierra and PGIM Join Forces to Invest €60 Million in Luxury Resort in Algarve

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sonaesierra
pgim
algarve
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Summary:

  • €60 million investment in luxury resort at Meia Praia, Lagos.

  • 158 units planned, including hotel and apartments, starting construction in 2024.

  • 17,000 square meters of state-of-the-art amenities including pools and spa.

  • Second investment from Sonae Sierra and PGIM after the Cénica Porto Hotel acquisition.

  • Iberian Hospitality Solutions to manage the new resort project.

Sonae Sierra, in collaboration with PGIM Real Estate, has announced a €60 million investment in a luxurious resort project at Meia Praia, Lagos. Construction is set to begin early next year with an expected completion date in 2027.

This premier resort will feature 158 units, including both hotel accommodations and apartments, located right on the beach. The project aims to collaborate with one of the top international luxury brands to enhance its appeal.

With a total construction area of approximately 17,000 square meters, the resort will offer state-of-the-art amenities such as indoor and outdoor pools, a modern spa, upscale restaurants, and leisure areas. The design will integrate seamlessly with the natural landscape, celebrating the unique essence of the Algarve and creating an exclusive experience tailored for couples, families, and solo travelers.

This marks the second investment from the joint venture, following the acquisition of the newly opened Cénica Porto Hotel in April 2023, which features 166 rooms in the heart of Porto.

Luis Mota Duarte, Deputy CEO and Executive Director of Investment Management at Sierra, expressed satisfaction with this strategic partnership, emphasizing their commitment to diversifying their portfolio with high-potential assets and enhancing their presence in the hospitality sector. He noted that the choice of Algarve reflects their ambition to contribute to the development of excellence in tourism in Portugal.

The project is supported by Iberian Hospitality Solutions (IHSP), a Lisbon-based asset and hotel management firm led by Gonçalo Batalha, which has managed over 30 hotels and resorts in the last decade.

The joint venture aims for a gross asset value of around €200 million, focusing on acquiring significant hotels in established destinations while implementing strategies to maximize value creation. This investment aligns with PGIM Real Estate's 'value-add' strategy for the European market. PGIM Real Estate manages real estate investments worth approximately $212 billion and is owned by the American insurance giant Prudential.

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