Vale Martim Afonso Sul – Executive Analysis of the Project and Determination of the Asking Price

Luxury residential/tourism project on an 8.2-hectare plot, located in the premium Comporta – Sobreiras Altas – Melides corridor, one of the most exclusive and sought-after destinations on the Alentejo coast.

Asset Composition

• Land Plot: 81.883 m²

• Existing Construction: 124 m² with the possibility of expansion up to 500 m² (+376 m²)

• Tourism development rights: 1.662 m² (of which 1,372 m² are saleable)

• Licensing status: Architectural design approved for the construction of six villas and a clubhouse/restaurant.

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Project Plan 

• Total units: 7 (6 villas + clubhouse)

• Saleable tourism area (condominium ownership): 1.372 m²

• Residential area: 500 m² (owner’s use / independent unit also available for sale)

• Final product: Luxury villas with contemporary design, seamlessly integrated into the natural landscape.

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Sales Scenarios (GSV – Gross Sales Value)

Calculation based on:

• 1,372 m² tourism area × price/m² (8.500 / 9.000 / 9.500)

• 500 m² residential area × price/m² (8.500 / 9.000 / 9.500)

Scenario 1 – €8,500/m² (residential + tourism)

Tourism revenue: 1.372 × 8.500 = 11.662.000 €

Residential revenue: 500 × 8.500 = 4.250.000 €

• Total revenue = 15.912.000 €

Scenario 2 – €9,000/m² (residential + tourism)

Tourism revenue: 1.372 × 9.000 = 12.348.000 €

Residential revenue: 500 × 9.000 = 4.500.000 €

• Total revenue = 16.848.000 €

Scenario 3 – €9,500/m² (residential + tourism)

Tourism revenue: 1.372 × 9.500 = 13.034.000 €

Residential revenue: 500 × 9.500 = 4.750.000 €

• Total revenue = 17.784.000 €

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• Combined revenues (tourism + residential)

• Scenario 1: 15,91 M€

• Scenario 2: 16,85 M€

• Scenario 3: 17,78 M€

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• Costs and profitability analysis

  Acquisition of VMAS property with an approved TER license:  2.500.000 €

• building costs + IVA:

• Infrastructures: 553.500 €
• Restaurant Club House:289,80 m² x 3.500 €=1.247.589€ 
• Owner’s Home: 124,17 m² x 1.000 € =             152.729 €
• Extra Res. Buildability: 376 m² x 1.750 € =      807.188 €
• P2: 208,74 m² x 1.750 € = 452.025 €
• P3: 244,43 m² x 1.750 € = 516.600 €
• P4: 244,43 m² x 1.750 € = 516.600 €
• P5: 244,43 m² x 1.750 € = 516.600 €
• P6: 306,16 m² x 1.750 € = 645.750 €
• P7: 124,17 m² x 1.750 € = 258.300 €

• CapEx: 10.133.371 €

• overall construction costs:         5.666.881 €
• contingency 15%:                          850.032 €
• fixtures and Furnishings:              628.946 €
• engineering project fees 6%:        340.013 €
• acquisition VMAS with license:  2.500.000 €
• IMT 5% of the sale value:             125.000 €
• Stamp Duty Tax 0,8%:                    20.000 €
• notarial expenses 0,1%:                   2.500 € 

• Estimated Cumulative Margin (non-deductible VAT included)

• Scenario 1: ~1,88 M€ – ROI 18,61%
• Scenario 2: ~2,81 M€ – ROI 27,74%
• Scenario 3: ~3,73 M€ – ROI 36,86%

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Target acquisition price for the asset with TER license: 2,25 – 2,75 M€  

Set acquisition price for the asset with TER license: 2,5 M€

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• Acquisition of VMAS without TER license:  1.990.000 €

• CapEx: 3.586.012 €

The turnkey CapEx, at € 7,172 per square meter of built area, positions the property well below the area’s average market values, offering substantial upside potential compared to local benchmarks.

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Target acquisition price for the asset without TER license: 1,75/2,00 M€  

Set acquisition price for the asset without TER license: 1,99 M€

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Key investment considerations

• Strategically located between Comporta and Melides, within an ultra-premium market segment.

• Project with approved architectural plans, significantly reducing timelines and risk exposure.

• Projected ROI 36,86% with an approved TER license.

• A well-established international market with high demand for premium properties.

Conclusions:

The Vale Martim Afonso Sul – Eco Resort project stands out as an investment opportunity offering an attractive balance between risk and return in the premium Comporta–Sobreiras Altas–Melides corridor, combining a luxury product with approved architectural licensing and significant potential for value appreciation.

The main factors underpinning this attractiveness are:

• Strategic location in one of the most exclusive and high-demand areas of the Alentejo coast.

• Premium final product: 1+6 villas and a clubhouse/restaurant with contemporary design, landscape integration, and strong appeal to the international market for second homes and high-end tourism.

• Licensing already obtained, significantly reducing risks and execution timelines.

• Solid financial projection:

  • GSV (Gross Sales Value) between €12M and €14M, depending on the pricing scenario.

  • Estimated ROI between 19% and 37%, with operating margins within €1.88M and €3.73M.

• Competitive target acquisition price, particularly in the pre-license phase (€1.75M–€2M), with additional value uplift once the license is obtained (€2.5M–€2.75M).