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Kronos Investment Group and Davidson Kempner Invest 500 Million Euros in Ambitious Residential and Hotel Project in Vale do Lobo, Portugal

The Kronos real estate group is once again making a firm commitment to Portugal in collaboration with its partner, the U.S. fund Davidson Kempner. Together, they will allocate an investment of €500 million to develop a five-star residential and hotel project in Vale do Lobo, the iconic historic resort located in the Algarve region. This project marks a milestone for Kronos, being its largest venture in both Spain and the neighboring country in terms of investment volume. 

Kronos and Davidson Kempner recently acquired the company in charge of managing Vale do Lobo, as well as its two golf courses. This enclave, with strong links to golf and luxury, is considered the most historic development in the Algarve, according to Saïd Hejal, founder and CEO of Kronos Investment Group. Vale do Lobo, with 450 hectares on the shores of the Atlantic, was conceived in 1962 by Sir Richard Constain and became a prestigious hotel destination, standing out for the sale of luxury homes and golf courses, especially after the opening of Faro International Airport in 1965. 

Rui Meneses, CEO of Kronos Homes and partner of Kronos Investment Group, says the project will involve the construction of 460 homes over a 10-year period. This development will include luxury villas, detached villas and apartments, with an estimated average selling price of more than 12,000 euros per square meter. 

In addition, the plan contemplates the construction of a five-star hotel with 160 rooms, reserving around 20% of the places as "branded residences", i.e., homes associated with the establishment that will enjoy its hotel services, a growing trend in the luxury sector. 

In this acquisition, Kronos and Davidson Kempner have a third partner specialized in hotels and restaurants: the U.S. firm Highgate. Once Kronos initiates the project, they intend to partner with an internationally renowned architect to handle the design. This project will use up all the land currently available in Vale do Lobo. 

Rui Meneses anticipates that the buyers of the properties in Vale do Lobo will be mainly international, acquiring these homes as their usual residence during their stays in Portugal. He highlights the growing presence of U.S. citizens among potential buyers, who in recent years have shown significant interest in Portugal, in addition to more traditional European buyers. 

Kronos, one of the new companies that emerged in Spain from 2015 in the context of the recovery of the residential construction sector, operates under the developer brand Kronos Homes, while Kronos Investment Group is in charge of the investment, often with co-investment from partners.