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Payback terms:
The payback was generated from rent of the real estate, and was distributed as follows:
• USD 90 million to the SPV shareholders (equally divided between public and private entities)
• USD 65 million to the public development company
• USD 34 million to the central administration
• USD 15 million to the local administration
To recuperate investment, rental contracts were established with the final users, initially with letters
of intent and then with 5- to- 10-year rental contracts. The contracts guaranteed at least 60 per cent
building occupancy so the money from rents will secure future payments to the debt.
The output of the project generated residential, retail and service retail real assets. The assets were
sold to institutional investors, most of which were pension funds.
Observations
• The project has achieved significant social, environmental and economic impacts, but could
have provided greater outcomes in the transformation of the surrounding territories.
• For future projects, it is recommended that the positive externalities of improving a territory
should be integrated during design, construction and exploitation phases, so that surrounding
communities benefit from the development of a new district.
Figure 11: Parque das Nações, Lisbon (Portugal)
Before:
44 Compendium of practices on innovative financing for SSC projects | January 2023
