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CGD delivers hammer-blow to The Keys development at Quinta do Lago

Even State Bank Caixa Geral de Depósitos has its limits of tolerance: after lending Birchview, the developer of the Keys resort, an eye-watering €278 million, it has decided the buck must stop there, leaving the grandiose waterside village project in tatters.

Despite Birchview having presented a ‘recuperation plan’ under the government’s PER regime, newspapers report this week that CGD “cannot see the point” in lending the company any more money.

The decision leaves Birchview well and truly scuppered. Says negocios online, it has already signed promissory and final contracts on the next phase of The Keys – estimated to bring in property sales of around €40 million. But without special PER funding, nothing will come of the contracts, and Birchview will in fact be in even deeper financial trouble.

Coincidentally (or perhaps not), national tabloid Correio da Manhã ran a story last week on how €5.6 million of CGD money appears to have “just disappeared” in the fiasco of The Keys, which goes back to loans sanctioned in the ‘good old days’ when Armando Vara – currently fighting a jail sentence for the trafficking of influences and one of the numerous high-profile suspects in corruption investigation Operation Marquês – was a CGD director (click here).

So what happens next? According to negociosonline, the receiver (judicial administrator) will now hear all parties that are owed money, including the State which is owed another €376,000 in back taxes.

The website stresses there are no other financial institutions involved.

Since writing this article, the Resident has been contacted by representatives of Quinta do Lago, who have requested that we state the following:

• Birchview Imobiliária SA is not the entity responsible for the luxury resort located or denominated Quinta do Lago;
• Quinta do Lago, SA is a company and registered trademark which does not have any type of link with Birchview Imobiliária SA;
• There is no connection between Quinta do Lago SA and the PER of the aforementioned Company.

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