MVPAR is a real estate player focused on investment partnerships, real estate consultancy, asset management, project development (new and remodeling), residential, commercial, hospitality, build to suit and sale-leaseback. The company currently operates in Portugal and has plans to expand across the entire European Union.
How did your career path lead to MVPAR and where are you focusing your efforts presently?
My first memories are linked to real estate and land, as my parents had a construction company in Brazil since before I was born, then for about ten years I worked in the largest construction company in the South of Brazil, improving my engineering studies with office projects, residential, corporate and retail, to then start my own real estate development company in Brazil - building is in my DNA. We built some apartment buildings in Portugal in the last 8 years and created MVPAR, which is a young company.
The first project that bears our trademark is an apartment building in a 300-year-old historic property, located next to the presidential palace in Belém, next to the coach museum. Much of the interior architecture and paintings have been preserved and blended with modern elements, with a spectacular result.
Building high-quality apartments that customers want to buy and then are happy to own is a big responsibility and goal for us.
Your business model relies heavily on partnerships, why did you choose this approach?
In fact, all our projects are carried out in collaboration with partners, whether institutional funds or family offices. Working with partners helps us develop bigger and more meaningful projects, reducing the risk exposure of each business for everyone; and, in return, we seek the highest profit margins in the market with a focus on results - we study many new business opportunities every month to follow up with those that present the best results and profitability.
We will also establish a foundation (Giving back to the Society) for social projects focused on education and work.
What types of opportunities are you looking at with priority?
We are currently looking for buildings to retrofit in Cascais, Estoril and Lisbon and are actively looking for new development opportunities. We put our heart and soul into the projects we are building because we want them to have that irreplaceable touch to our customers.
How have you seen the market in Portugal change through time, especially in the context of the pandemic?
Cities have changed a lot, Lisbon 15 years ago has little in common with Lisbon today - new restaurants, tourist attractions and hotels are being built or renovated every year. Tourism represents more than 20% of the economy in Portugal and even though the pandemic has affected this sector, all signs indicate that it will soon be back on its feet. The center of Lisbon is full of retrofit projects, it has simply blossomed in recent years.
On the other hand, construction costs have skyrocketed in the last two years, making it difficult to build new projects by squeezing margins, especially in the midsize market. The VAT for refurbished buildings is 6% while for new buildings it is 23%, so you can see why it is much more viable to choose the first option. At MVPAR we are currently building for the high-end market, which makes more sense in this tax context.
Besides the taxation system, are there any other notable challenges that you came across in in Portugal?
The biggest challenge is staying in line with regulations as they are not consistent and tend to change suddenly along the way. The Golden Visas program was important for the market and it is a shame to see it changed, as well as the changes in short rental licenses, in addition to the slowness of the licensing processes in the municipal councils. All this insecurity is especially harmful to foreign investors.
Your eyes are set on the broader European continent, are there any countries you are looking at with priority?
In the next two to three years, we plan to expand our business to Spain, France and Italy. Of course, Portugal remains a priority, the mix between the cost of living, the value of investments and qualified labor makes Portugal a highly desirable destination, with a strong real estate market and a good offer for the future.
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