We are thrilled to announce a new project in Portugal. We’re returning to Lisbon to finance six prime residences in the Santo António neighborhood. If you’re interested in investing in luxury real estate in Lisbon, you can do so starting Thursday, November 28th at 4:00 PM (UTC+1). Below are all the details.
The Castilho 3 project involves renovating a luxury residential asset to develop six multi-family homes with balconies, private outdoor terraces, and five parking spaces in Lisbon. This development is located at number 3 Castilho Street, close to Avenida da Liberdade and Marquês de Pombal Square. The area is fully established, right in the heart of the prime financial district of the Portuguese capital.
The developer of this project is Mexto, a company specializing in the renovation and modernization of high-end residential properties in Portugal. Among its most notable projects are Fanqueiros Prime Residences and Sta. Marta Prime Living in Lisbon—both of which combine exceptional views and sophisticated design—and Avencas Ocean View Residences, winner of the 2022 National Real Estate Award in Portugal.
One unit already reserved
The Castilho 3 project follows a capital gains strategy, involving a partnership with the developer to complete the six residences. Urbanitae investors will contribute a total of €4,522,500, which will cover project costs not financed by the developer loan already agreed upon with a financial institution. Mexto will contribute 30% of the total capital investment.
One key strength of this project is that the building permit has already been secured, allowing construction to commence in November. Moreover, one of the six residences was reserved on the same day the developer launched the sales process, indicating strong demand. In light of this, Mexto aims to maximize returns by optimizing prices for the remaining units.
Additionally, a preferred return has been established for Urbanitae investors. Specifically, Urbanitae investors will receive a preferred return on generated profits of 15% annually (IRR). This means that neither the developer nor its partners will receive any profits until Urbanitae investors have achieved a 15% IRR. Furthermore, approximately 60% of the Urbanitae investment will take the form of a bond, giving it priority over the remaining capital contributions.
In this video, the developer and our Real Estate Director, Sergio Arana, explain the project details.
Returns in 28-32 months
As with all our capital gains projects, we are not permitted by the regulator to provide estimated return figures. However, you can calculate them using the following formula:
(Projected Revenues – Estimated Costs) / Total Equity
The Castilho 3 project has an estimated timeline of 28 to 32 months. Construction is expected to begin as soon as financing is secured, in November. The project’s completion is anticipated in the first quarter of 2027, with unit deliveries scheduled for the first or second quarter of the same year. Therefore, the company will dissolve and distribute the generated profits among investors in the second or third quarter of 2027.
Do you have any questions? On Wednesday, November 27th at 12:00 PM (UTC+1), we will host a webinar with the developer to address any inquiries about the project. You can also reach us via email at contacto@urbanitae.com or by phone at (+34) 911 23 25 22.
Don’t miss this opportunity to invest in luxury real estate in Lisbon. We look forward to seeing you!
