Amorim improves offer for Comporta with €158 million

The consortium comprising Vanguard Properties and Amorim Luxury led by businesswoman Paula Amorim has offered €158 million to buy the real estate assets in the Herdade da Comporta Special Closed Investment Fund.

A final decision on the purchase will be made on 27 November and must receive the green light from the Portuguese Public Ministry.

The offer now made is only marginally higher than the previous rejected offer of €156.5 million. In addition to the amount offered, the sale foresees a guarantee that corresponds to around €8 million which will be in force for nine months and cover eventual losses should the assets not meet the description laid out in the contract.

The agreement for the purchase of the real estate assets was signed on 23 October and the consortium is now waiting for the agreement of the general assembly of participants set for the 27 November.

The Comporta assets was seized by the Portuguese State and the authorisation for the sale can only go ahead with the lifting of the seizure order and ban of sale.

If the authorisation is not granted the sale will not go ahead and the Comporta estates risk going into bankruptcy.

Comporta, which was owned by the Espírito Santo Group (GES) is currently held by Rioforte. The board of Herdade da Comporta’s management company (Gesfimo) decided to launch a new sale process if existing bidders agreed to waive any rights to challenge a future decision.

The three previous bidders refused to agree to this condition, concerned that they would be giving away their legal rights.

Three quarters of the shares in the real estate investment fund are held by Novo Banco and Rioforte. These have been for sale since the collapse of Banco Espírito Santo bank in 2014 but all attempts to sell the Herdade failed as the fund and the management company need to be sold at the same time to the same buyer for any deal to be viable.