Holiday resort favourite Vilamoura gets set for multi-billion pound makeover on Portugal's sunny Algarve coast

By Ben Griffiths for the Daily Mail

Published: 06:15 EST, 8 September 2015 | Updated: 06:15 EST, 8 September 2015

One of the leading resorts on Portugal’s Algarve coast is set for a multi-billion pound makeover and expansion after a cash injection from private equity firm Lone Star and property investor Tram28.

Vilamoura is well known to British holidaymakers. Eight times the size of Monaco, it has five championship golf courses, including the Portuguese Masters course, an international equestrian centre and a giant marina which can berth up to 875 yachts.

Lone Star is understood to have acquired the resort for €200million in March this year from Caixa Catalunya, the Spanish bank. 

Desirable: One of the leading resorts on Portugal’s Algarve coast, Vilamoura is set for a multi-billion pound makeover after a cash injection from private equity fund Lone Star and property investor Tram28

Desirable: One of the leading resorts on Portugal’s Algarve coast, Vilamoura is set for a multi-billion pound makeover after a cash injection from private equity fund Lone Star and property investor Tram28

A new plan for the next phase of development, unveiled today will see around 700,000 square metres of development to the west of Vilamoura Marina, and the building of some 5,000 residential and holiday properties.

It is likely to drive thousands of direct and indirect jobs in construction ‎over the next five to seven years, plus more in the provision of services, retail and hotels.

The investment comes as Portugal emerges from Europe's financial crisis. The plan for Vilamoura will see the resort taken upmarket with marina space for up to 1,000 vessels including giant super yachts and the hope is to turn it into one of the leading holiday destinations in Europe.

Ex-Airbus UK boss Robin Southwell, Tram28's founder and chairman, said: ‘If you look at where is the right place to focus investment today this is a country which is incredibly easy to do business in. The Portuguese have a great attitude to the rule of law and governance.

‘Their culture is one of integrity and we have found it very comfortable in dealing with them. They have welcomed our working with them. We are happy to drive the agenda and to see a real mixing of cultures – plus there is the food and wine.

‘Look at where the markets are now as they start recovery following the European crisis. Portugal has done an amazing job of harnessing the requirements of the Troika and dragging itself out of the desperate straits the country was in. They have showed a commitment to the business ethos that we all aspire to.'

Luxury: Vilamoura is well known to British holidaymakers. It has five championship golf courses, including the Portuguese Masters course, an international equestrian centre and a marina which can berth up to 875 yachts

Luxury: Vilamoura is well known to British holidaymakers. It has five championship golf courses, including the Portuguese Masters course, an international equestrian centre and a marina which can berth up to 875 yachts

Ex-banker Paul Taylor, chief executive of Vilamoura, is a former property developer who was linked to a bid for supermarket giant J Sainsbury’s in partnership with the Qatari Investment Authority.

More recently he has been investing in distressed property and is a founding shareholder of Tram 28, which takes its name from the oldest serving tram in Portugal’s capital, Lisbon.

Taylor said: ‘In the last few years Portugal has made huge strides to attract international inward investment through fiscal benefits and the successful Golden Visa Programme. 

'Vilamoura provides a major investment opportunity in the future of Portugal. The country is on the road to recovery and Vilamoura is proud to play a key role in this national renewal.’

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