Track Record

Discovery Fund, founded in 2012, is a Tourism Real Estate fund sourced via direct negotiations with the main Portuguese financial Institutions.
Currently the fund has 23 operating units with an Asst value of circa €1bn, managed by a local team that operates their own brand OCTANT and international brands trough franchise agreements such as Ramada, or buy international reputed brands trough management agreements, such as Six Senses.

Discovery is not included in the Refundos Explorer Portfolio and Explorer Investments Explorer Investments remains as investment advisor of this fund.

One of the most emblematic office buildings in Lisbon.
Through active management, vacancy rate was significantly reduced, several contracts were updated to reflect market rents and a significant portion of FPM 6 was recently let on a long-term contract to a strong single tenant – Cuatrecasas, a leading Iberian law firm. This major tenant replacement and new letting was done in record timing and resulted in an increase of rental income of 60%.

The building was repositioned through a refurbishment project that further improved its positioning. The modernization of its façade highlights its attractiveness.
A new office area was developed on the 12th floor, which benefits from a wonderful terrace with a unique view of the Tagus River.

NOI increase by +100%; Exit (in a portfolio of 3 assets) at over 20% Gross IRR

Changed tenant mix and cost cutting of admin costs; NOI increase of 46%; Exit (in a portfolio of 5 assets) at over 20% Gross IRR

EREF I 5 de Outubro Rental NOI doubled in 3 years and asset was divested in 2021 with an IRR above 20%.

After rent contract renegotiations and refurbishment asset sold with an IRR above 20% and a 2x MOIC.
Rental income and NOI increased by 87% and 108%, respectively. In addition to rent optimization, operational leverage was further improved by (i) re-adjustment of service charges and (ii) successful application for property tax exemption.

Refurbishment included initiatives to reduce utilities consumption in order to become more efficient.

Value Add Office project to reconvert an existing 11 200 sqm building into a Grade A asset with ESG certification

Asset was divested in 2019 (in a portfolio of 5 assets) with an IRR above 20%. Dynamic lease management that maximized the asset’s income through new leases and renegotiation resulting in up to more than 26% of rental income increase over two years.

Asset was divested in 2022 (in a portfolio of 3 assets) with an IRR above 20%. Terminated letting agreements with 6 tenants and signed 3 agreements, with rents 32% to 44% higher, with AAA tenants. Approval of a new retail unit on the groundfloor.

Asset was divested in 2022 (in a portfolio of 3 assets) with an IRR above 20%. Negotiated an early lease termination and let to an IT Multinational, for 10 years, with a rent 57% higher.

Asset was divested in 2019 (in a portfolio of 5 assets) with an IRR above 20%. Asset with limited value add, purchased in the context of the EREF I transaction.

Reposition the asset to become a more attractive asset to divest.

Contract extension renegotiation to become a more attractive asset to divest.

Asset was divested in 2019 (in a portfolio of 5 assets) with an IRR above 20%. Asset with limited value add, purchased in the context of the EREF I transaction.

Asset with limited value add, purchased in the context of the EREF I transaction In a challenging geography, sale arranged to a local investor securing a positive return just short of two digits.

Penha Longa is a unique destination, set in the middle of a UNESCO World Heritage Site, in Sintra and Cascais. It is known as one of the best and more exclusive resorts in Portugal 200-ha resort; five-star hotel of 204 rooms; 2 golf courses (27 holes); 8 F&B outlets – 3 with a Michelin star. Refundos Explorer together with the hotel team improved the attractiveness and performance of the hotel.
NOI increase of 17% in the first year Unlock value add by approving the development of a new 150 key Hotel. Key role in dealing with planning authorities and coordinating licensing procedures and ESG certification.
Unique location within the Natural Reserve with Ritz Carlton as the potential operator. The new Village will be an exclusive and luxury residential product located within the Natural Reserve.
Original project in serious risk of non execution; Refundos Explorer took quick and decisive action to put the project “back on track” and to redesign a completely new and outstanding project with ESG certification.

Total refurbishment of the 6 042 sqm office building with smart capex. Repositioning the building for core single tenant – Oni and now The Navigator company – with long term lease contracts, increasing the value of the asset by more than 25%

Office building with 10 426 sqm. Refurbishment with smart capex and repositioning asset renegotiating lease contract with office single tenant from a 6 month to a long term 12-year contract, improving the value of the asset by more than 20%

Land plot located next to Palacio da Ajuda.

With an area of 36 095 sqm. Designed the master plan and projects (“Unidade de execução”) for the City Hall, achieving the first stage of approval ensuring the potential GCA above ground of 26 000 sqm.

Asset sold afterwards.

Total transformation of an industrial and office building to an Office asset with 11 246 sqm.
Reposition asset with a capex of circa 3,5m and changed tenant mix to two major tenants – Leya headquarters and Grupo Your headquarters. Improving the value of the asset by more than 35%.

Total rehabilitation of street retail building 975 sqm in Oporto. Reposition asset and attracting Adolfo Dominguez brand in a long-term lease contract. Improving the value of the asset in more than 20%

Total rehabilitation of the Palace Building in a +3m investment, adding one more floor off useful offices on the last level with a total 2 208 sqm.

Reposition asset and attracting a core tenant – the BCG headquarters in Portugal. Achieving a high two digits IRR.

Total rehabilitation of street retail building 975 sqm in Oporto. Reposition asset and attracting Adolfo Dominguez brand in a long-term lease contract. Improving the value of the asset in more than 20%

Total rehabilitation of industrial warehouse with 5 940 sqm. Repositioning asset and attracting the Head Quarters of Casa do Marques, major player in the events Portuguese industry. Improving the value of the asset by more than 20%

Land plot; Development of project, licensing and construction of office building with a GCA of 18 273 sqm and a GLA of 7 975 sqm. Developed for multi-tenant occupation between 160 sqm to 4 000 sqm, with 284 parking spaces. High two digits IRR

One of the most emblematic office buildings in Lisbon.
Through active management, vacancy rate was significantly reduced, several contracts were updated to reflect market rents and a significant portion of FPM 6 was recently let on a long-term contract to a strong single tenant – Cuatrecasas, a leading Iberian law firm. This major tenant replacement and new letting was done in record timing and resulted in an increase of rental income of 60%.

The building was repositioned through a refurbishment project that further improved its positioning. The modernization of its façade highlights its attractiveness.
A new office area was developed on the 12th floor, which benefits from a wonderful terrace with a unique view of the Tagus River.

NOI increase by +100%; Exit (in a portfolio of 3 assets) at over 20% Gross IRR

Value Add Office project to reconvert an existing 11 200 sqm building into a Grade A asset with ESG certification

EREF I 5 de Outubro Rental NOI doubled in 3 years and asset was divested in 2021 with an IRR above 20%.

After rent contract renegotiations and refurbishment asset sold with an IRR above 20% and a 2x MOIC.
Rental income and NOI increased by 87% and 108%, respectively. In addition to rent optimization, operational leverage was further improved by (i) re-adjustment of service charges and (ii) successful application for property tax exemption.

Refurbishment included initiatives to reduce utilities consumption in order to become more efficient.