Two global property development entrepreneurs announce a joint venture offering investors increased opportunities to buy into the attractive Portuguese real estate market.
RE Capital, the Geneva based property investment, development and asset management business headed up by Newman Leech, and Neworld, a European-domiciled property development company established by South African property development specialist, John Rabie, have set up a joint venture business named Reward Properties.
The two companies began their partnership in 2019, developing residential and mixed-use projects in Lisbon, with Cape Town-based Skybound Capital coming in as the major financier.
“We invited John Rabie and his team to Lisbon to give them an overview of the opportunities available in the Portuguese market and they were very impressed with what they saw,” says Newman Leech, CEO of Swiss-based RE Capital.
“Our first joint project was LX Living, a €90-million, 150-unit mixed-use development in Amoreiras, a sought-after residential neighbourhood in central Lisbon. It was launched to investors in South Africa and Portugal in 2019 with great success.
“Subsequently it has made strategic business sense for us to commit to a joint destiny and to name the venture Reward Properties, a brand that combines our skill sets, joint resources, capacity, technical expertise, and access to markets, all of which add great value for our international investors, especially those who might be buying property internationally for the first time.”
Neworld founder and CEO John Rabie, who has been at the forefront of South African property development for more than 40 years, says Portugal continues to be one of the best territories in the Euro Zone to invest in. “It’s a remarkably beautiful country, and has recently undergone a major infrastructure upgrade,” he says. “Our investors have access to extremely favourable interest rates, as well as rental guarantees and attractive purchase prices.”
In addition, he adds, each site selected for development by Reward Properties meets a stringent set of criteria to ensure that investors can count on strong growth returns.
“It’s well known that South Africans punch above their weight when it comes to construction and property development expertise,” adds John. “Reward Properties gives us and our investors a platform for world-class development in what PricewaterhouseCoopers recently described as the number one mid-tier city in Europe, thanks to quality of life and positive leadership.”
The establishment of Reward Properties and the launch of the company website provide potential investors with a simplified overview of the expertise of the developers, the range of potential investments, and the quality of the developments.
“Our objective is to create a brand that promotes sustained investor confidence, and simplifies our go-to-market strategy,” says Newman. “John and I and our teams have discrete but complementary capabilities, and we are delighted to be on a journey together, building a new overarching and sizeable brand.”
In addition to LX Living, Reward Properties has in its current portfolio two magnificent development sites in the trendy neighbourhood of Marvila in Lisbon, where a total of 300 apartments will be built over the course of the next few years, and a recently acquired fourth development site in the Algarve, known for its magnificent beaches and golf resorts, which will add another 43 villas to the company’s portfolio. The gross development value of the portfolio amounts to approximately €300 million.