In summer of 2019, the Group concluded a shareholder agreement for a 25% investment in a 5,000 sqm residential development project in Lagoa, Algarve, Portugal, consisting of 33 apartments including 35 parking spaces. A valid building permit has been granted and all architecture and engineering have been completed.

Financing for this project will be provided by a local bank and construction is done by a Portuguese general contractor, using high quality materials and equipment which are as much as possible locally sourced. The project qualifies as urban redevelopment (ARU) and therefore adds value to the local community as well. As a result of COVID-19 and the change in residential demand patterns, the Group together with the local architect and co-developer prepared an alternative layout of the building, replacing the larger town houses and penthouses into smaller apartment units, essentially increasing the number of units, and slightly decreasing the average size of each. Pre-sales are started in the second half of 2022 and full completion is expected in the second half of 2023.