Azores/from €150,000: The Azores are 'the west of Ireland plus 10 degrees' says an Irish developer who plans to build a number of golf resorts in these Portuguese islands in the mid-Atlantic. Sandra O'Connell reports'
Having helped put the western Algarve on the map for Irish and UK holidaymakers, resort developer Oceanico Developments is hoping for a repeat performance in the Azores.
The company, headed up by Irishman Gerard Fagan, is to bring together more than €700 million worth of investment in golf and holiday facilities in the Portuguese archipelago, which lies midway between the US and mainland Europe.
The purchase of two government-owned golf courses, clubhouses and additional property on Sao Miguel, the most developed island in the Azores, marks Oceanico's first development outside of mainland Portugal. The purchase was completed in a joint venture with Madeiran company Grupo Siram.
The tender winner was given responsibility for consolidating tourist development in the nine-island archipelago, which has a resident population of 240,000.
Improvements to the golf courses are to be followed by the development of holiday homes and resorts close by.
Prices for Oceanico's holiday properties in the Azores, for which no details are as yet available, will be comparable to those at its developments in the western Algarve, says Fagan. Studio apartments there start at €150,000, with four to five-bedroom villas priced at more than €1 million.
"We are aiming to make the Azores one of the most sought-after golf destinations in Europe," says Oceanico director Gerry Fagan. "We are working closely with the Azorean government to ensure we develop facilities that will appeal to everyone."
The plan is for a mix of holiday properties and tourist resorts, including four and five-star hotels and spas, in line with the government's plans for the future development of the islands. A third golf course, on the smaller island of Faial, is also being established, with more than 100 hectares of land currently being acquired by Oceanico.
The Azores has been named "Undiscovered Golf Destination of the Year 2006" by the international golf travel market magazine. "Golf is a year-round activity here in a climate which is best described as the west of Ireland, plus 10 degrees," says Fagan. The average minimum winter temperature in the islands is 14ºC, rising to a summer maximum of 28ºC.
Between 2001 and 2004 the number of guests booking accommodation in the Azores grew from 242,000 to 508,000, with overnight stays more than doubling to 1.5 million during the same period. Oceanico Developments is a relative newcomer to the resorts market. It launched its first Algarve development, Jardim da Meia Praia, in 2004. Last year it built Amendoeira, a five-star golf course resort. Golf will, says Fagan, now play a major role in the company's future developments strategy.
As part of its bid to raise awareness of the Azores as a golfing destination, Oceanico sponsored the PGA EuroPro Verde Golf Azores Championship last week.
Earlier this year Oceanico launched Stepping Stones, a sales vehicle which allows four unconnected buyers to buy a quarter share in fully furnished holiday properties with buy-back guarantees. This will probably be part of the sales proposition in the Azores.
From an Irish perspective, a major concern is the lack of a direct flight from Dublin to the Azores. SATA International runs a weekly flight from Gatwick which takes around three hours. While Oceanico's activities to date have concentrated on the Irish and UK markets, it believes the Azores will be of interest to US and Canadian investors too because of its proximity to North America.
