The announcement was made by Kronos Homes managing director for Portugal and Spain, Rui Meneses Ferreira, in an interview with Expresso newspaper.
Kronos Homes also announced it is nearly concluding the sale of Palmares Ocean & Living resort in Lagos to American company Arrow.
“The total investment in the development of Vale do Lobo Golf & Beach Resort, including the acquisition cost, is expected to be around €500 million over the next 10 years. It represents phase 2.0 of the company in the Algarve now that we have sold Palmares,” Rui Meneses Ferreira told Expresso. “Construction work will start in 2024,” he said, adding that the international architect responsible for one of the projects within the resort “will be announced soon”.
Kronos Homes has been responsible for the management of Vale do Lobo operation since February, following the purchase of the Crow Project — a portfolio that was in the hands of banks — by a consortium led by Davidson Kempner Capital, considered the largest real estate transaction ever in Portugal and valued at €850 million.
Out of the 460 residential units planned for Vale do Lobo – including apartments, single-family houses and plots of land – 237 will be part of the new expansion phase called Vale Real, while another 120 units will be constructed in the “Vale de Santo António” area.
The project for Vale Real also includes a five-star hotel with 126 rooms and 30 branded residences.
The remaining 103 housing units will be developed within the existing Vale do Lobo development.
The investment in the development of Vale do Lobo will also see improvements carried out to the resort’s golf courses, tennis and paddle sports centre and “everything close to the beach”.
Last development area
According to Meneses Ferreira, Vale de Santo António represents the “last area” to be developed in Vale do Lobo, which Kronos intends to make “emblematic”.
The head of Kronos Homes adds that the concept design project is already under development for the 80,000 square metres of land to be developed. Investment in this area will represent €60 million in construction alone.
“This is the last opportunity to make a mark on Vale do Lobo, and due to its location and surroundings, both developments will be aimed towards the premium segment,” he said.
“Vale do Lobo is not just a real estate project. With over 60 years, it combines beach, golf, leisure, and an entire lifestyle that we intend to preserve,” Meneses Ferreira added.
Meanwhile, Alda Filipe, regional director of Kronos Homes and Vale do Lobo Board Member, highlights that the resort, whilst famous for its beach and two golf courses, has a significant residential component, with 1,500 houses owned by people from 35 nationalities.
“About 10% of Vale do Lobo residents, equivalent to 150 families, live here year-round, and many others spend more than six months,” she told Expresso, adding that 60% of residents are of British origin. “Especially since the pandemic, it is noticeable that people have come to stay and make the Algarve their primary residence,” Alda Filipe explained.
The acquisition of the Crow Project includes a set of assets comprising around 750 already built properties, mainly located between Sagres and Faro, and 425 units to be developed over more than 102,000 square metres of area. The deal represents a potential of over €1 billion in property sales, according to Kronos.
“Vale do Lobo is the sole most important property that transitioned to Kronos management, but there are others, although smaller, that are somewhat emblematic,” said Alda Filipe.
One example is the developments in Herdade dos Salgados.
“Salgados is one of the areas in the Algarve with the most tourist accommodation, around 400 units,” the regional director said.
The company is already refurbishing 160 existing units in Salgados Palm Village and Salgados Dunas Suites. After the refurbishment, the units will be placed on the market in 2024 and 2025,” Meneses Ferreira explained.
The company will also reposition and sell other existing developments, such as Conrad Algarve (82 units) or Monte Santo Resort in Carvoeiro (72 units), among others. On the other hand, Kronos has been marketing and selling the 114 houses built in Salema Beach Village near Vila do Bispo since April.
As for ‘phase 1.0’ of Kronos, started five years ago, Rui Meneses Ferreira said that, in addition to selling Palmares, the company also sold Amendoeira Golf Resort to the Algarve-based Rolear group this year.