In an interview with Investment Migration Insider's Ahmad Abbas, Optylon Krea's Manager in Origination & Asset Management team Jose Rebelo talks about Optylon Krea's asset sourcing methodology, inner workings of the Asset Management Department, and what makes Optylon Krea stand out among other investment firms in Portugal.

Ahmad: Jose, it is a pleasure to finally meet you, and let me say I always find it interesting to talk with the people who work tirelessly behind the scenes to provide the best service possible for their clients. Tell me a bit about yourself and your department.

Jose: Thank you Ahmad. I am a Manager in the Origination & Asset Management team at Optylon Krea. Our team handles the process of sourcing new projects, developing them, and finally managing them from the “Financial point of view”. The team handles the entire process and is internally divided into Origination and Asset Management. As a Manager, I’m focused on the investment and asset management of the Real Estate Development projects and I am also in charge of funds asset management within the scope of the Portuguese golden visa.

Ahmad: That must be a handful! When creating this diverse and comprehensive department, what was its initial goal?

Jose: Our main mission has been the same since we established the department. It is basically providing Optylon Krea clients with high-quality assets with a reasonable risk that gain significant valuation with time. On the development side, we target high quality assets that have great capital gain potential and that are complemented with our portfolio of the yielding assets aiming to provide steady income, hedging against inflation and be exposed to solid capital gains. We aim to edge out other projects in the market in terms of quality and profitability, and allow us to create a unique portfolio of branded residences throughout Europe.

Ahmad: When you say profitability, do you mean rental yield or overall appreciation?

Jose: In a sense, both. Through our developments we aim to create dynamic retail hubs enveloped in high-end residential buildings. This ensures a certain level of rental yield, but the main source of high profitability comes from the value added to the properties through the development.

Once the development becomes a central hub for retail and upscale living, it attracts more interest, and as areas around the project evolve to match its sophistication, our project transforms into the heart of an elevated community area that demands higher value.

Ahmad: You also mentioned your projects focus on branded developments, can you expand on that a bit?

Jose: Of course. Branded developments have long been a popular real estate development driver in the US, and we are bringing that into Europe. We work exclusively with high-end hospitality brands that have their processes perfected down to a tee. Our branded residency projects allow us to combine our expertise in Portuguese culture, community, and architecture with the global know-how of massive hospitality giants to create stunning communal hubs that offer a wide range of perpetual services such as property management, rental aid, and ongoing development.

The premise of branded residences has been missing in Europe, and although they seem like the next natural step, very few projects are popping up on the continent. I think that has to do with brands struggling to find strong partners in Europe, but we have broken that barrier, and Optylon Krea is now heading to become a major branded residences developer in the region.

We have started out in Portugal but are expanding our branded residency projects into other parts of Europe, such as Spain, Italy, Greece, and Turkey, to name a few, with many more areas coming in the future.

Ahmad: It seems like you are planning to slowly redefine the socioeconomic lay of the areas you target for development. A massive undertaking by any standard. How do you choose the best area for a new project, or even the project itself?

Jose: We have been optimizing our process for years now, and I don't think I can explain it in one interview, but I will try to summarize it as best I can.

It all starts with finding a suitable area/region ; we look for trendy/touristic/lifestyle locations where our hub would fit naturally. Then we move to the property search. Our first stepping stone is the hub, where we are looking for areas that are at least 5-20 sqm that are accessible or near bustling localities. This all starts with our sourcing team, who we have a weekly meeting with to discuss any new projects or deals with. They present the asset management team with any potential new deals, and we go through them with a fine-tooth comb.

Our sourcing team sometimes gets approached by local or international brokers, and sometimes they actively search for opportunities themselves, going through the entire process of evaluating the potential of an area, checking the land registry for owners, and contacting all stakeholders to see if it works.

When choosing a new project, we look for areas that can host a central retail hub that has the capacity to become the most attractive place in an already trending area. We also need the area or project to allow us to create a residential ring around the commercial hub, and that includes ensuring there is enough space, the layout meets our designs, and the established buildings can be renovated or redesigned as needed.

If there are historical or architecturally beautiful buildings already in place, we use them to enhance our designs and the overall vibe of the projects. So in Portugal, which is full of amazing buildings, we can easily infuse the local design with the style of a branded residence. We aim to create a synergy between all of the aspects of a project, and that they all contribute to the uniqueness of the project.

Of course, when considering a new project, the numbers must add up.

Ahmad: What do you mean exactly when you say the numbers must add up? Do you mean it in terms of falling within your budget, the sellability of the project, or the scalability of it?

Jose: Well, all of the above is absolutely necessary, of course. But what I refer to as numbers is from both the developer point of view and the client/investor point of view. When we create a new project we aim for it to be very high-quality and prove good value for money, but we also need to ensure the future owners (the clients) will receive the right yield for their investment through the operation of the apartments.

We can lower risk by ensuring that our design and vision are implemented, as we will then be providing a unique investment opportunity that can stand the test of time. It will always garner demand, and investors who buy into it won't have any trouble selling it in the future.

Our main objective in terms of numbers is to create a project that will edge out the housing market in terms of appreciation. Our projects' values grow at a faster rate than any other in the country, and that is part of why we create entire community experiences rather than the one-off residential building that most developers consistently go with.

Ahmad: And how do you manage to create what you elegantly referred to as entire community experiences? What goes into the planning of a project like this?

Jose: While that may seem like an impossible task for an ordinary developer, we are luckily not one. We do much more than just planning and development, and thanks to our highly diversified team in terms of expertise, we can plan a project without leaving any gaps.

Optylon Krea has torn down its walls to create a massive communication hub for inter-departmental communication. Our departments work in complete synergy, and any potential project is discussed in length with members from each department.

For example, a branded residencies project has to be discussed with partners from the design, development, asset management, finance, tourism, marketing, sales, operation, legal, and BizDev departments. It also goes through top management as well. This way, we create a project that has all its aspects perfectly harmonized together and produces greater value for our clients and the communities around them.

Ahmad: Sounds comprehensive, complex, and absolutely thrilling. I look forward to seeing your future endeavors. It has been a pleasure Jose, and thank you for your time.

Jose: Thank you, Ahmad, and I look forward to doing this again soon and giving the listeners and readers a bit more insight into our projects and why they are currently the best investment options on the entire continent.

Ahmad: For those looking to know more about Optylon Krea's projects or how they fit under the umbrella of Portugal's golden visa, contact Optylon Krea through their website or call them directly at +351 212 400 124.

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