VENEZUELA
REAL ESTATE
OPPORTUNITY
A First-Mover Investment in Latin America's Most Distressed Market
Projected 3-Year Return
35-50% IRR
Entry Valuation Discount
75% Below 2014
Madrid, Spain • January 2026 • Confidential
Investment Thesis

The Opportunity

  • ⚡ Regime Change → Market-oriented government
  • 💰 Sanctions Relief → US capital influx expected Q2-Q3 2026
  • 🏠 Price Compression → 75% below 2014 peak valuations
  • 👥 Diaspora Return → 7.7M Venezuelans with $100B+ capital
  • ⏰ First-Mover Window → 18-36 months before market re-opens

Fund Structure

Vehicle
Spanish FIC (CNMV-regulated)
Target Size
€50-75M
First Close
€20-25M (Month 4)
Deployment
18 months
Minimum Check
€500K-1M
Fee Structure
2% mgmt / 20% carry (8% hurdle)
Venezuela Market Overview

Price Compression Metrics

Property Type 2014 2026 Decline
Residential (Caracas) $200K $60K -70%
Commercial $500K $100K -80%
Coastal (Margarita) $150K $30K -80%
Regional Cities $100K $15K -85%

Market Characteristics

Rental Yields

5-12% annually on commercial; 3-8% residential. Expected to compress post-appreciation.

Transaction Structure

85% cash-based deals; minimal formal banking. Prices highly negotiable.

Inventory & Absorption

25+ years of inventory at current absorption. Demand expected to accelerate post-stabilization.

Return Scenarios

Conservative Case

Total 3-Year Return
35-40%
12-16% annualized
  • Partial stabilization
  • Sanctions partially remain
  • Limited diaspora return
  • Modest economic recovery

Base Case

Total 3-Year Return
50-60%
21-28% annualized
  • Full regime transition
  • Sanctions substantially lifted
  • Diaspora repatriation begins
  • Oil production recovery

Optimistic Case

Total 2-Year Return
100-120%
50-70% annualized
  • Rapid stabilization
  • Full US sanctions relief
  • Major diaspora wave
  • US institutional capital

Base Case: €1M investment → €1.5-1.8M proceeds over 2.5-3 years

Deployment Timeline
1
Months 1-4
Fund Formation
First Close
Initial Sourcing
2
Months 5-12
Active Deployment
Property Acquisition
Portfolio Building
3
Months 13-18
Final Deployment
Asset Management
Market Monitoring
4
Year 2-3
Exit Strategy
Portfolio Liquidation
Returns Distribution

Acquisition Strategy

Focus on distressed sellers, foreclosures, and motivated liquidations. Target 40-60% discount to intrinsic value. Prioritize properties with clear title and minimal legal complexity.

Exit Strategy

Phased liquidation starting 24 months post-deployment. Target local buyer market expansion, diaspora return demand, and institutional interest from normalized market conditions.

Risk Assessment

Key Risks

High Political Instability: Government reversal or policy uncertainty
High Sanctions Continuity: US/EU sanctions remain in place longer than expected
Medium Currency Risk: Bolivar volatility and capital control restrictions
Medium Title/Legal: Property documentation and ownership clarity
Medium Liquidity Risk: Exit market may remain illiquid
Low Property Condition: Deferred maintenance and deterioration

Mitigation Strategies

Political Hedging

Diversified asset portfolio across multiple cities and property types. Partnership with local operators with regime-agnostic relationships.

Currency Management

All acquisitions in USD. Rental income converted immediately. Use of parallel market mechanisms and offshore structuring.

Legal Due Diligence

Comprehensive title verification. Local counsel review. Focus on properties with clean documentation and minimal encumbrances.

Liquidity Planning

Phased exit strategy over 12-18 months. Multiple disposal channels including local buyers, diaspora, and institutional players.

Team & Track Record

Core Team

General Partner

15+ years LatAm investment experience. Previous experience:......

Local Operating Partner

Venezuela native with 20+ years commercial real estate experience. Network across Caracas, Valencia, Maracaibo. Managed portfolio of ....

Legal Counsel

Top-tier Venezuelan and Spanish law firms. Expertise in cross-border transactions, CNMV compliance, and LatAm regulatory frameworks.

Comparable Precedents

Market Entry Year IRR Exit
Argentina 2002 45% 2006
Greece 2013 32% 2018
Colombia 2004 38% 2009
Ireland 2011 28% 2016

Advisory Board

Former Venezuelan ............

Next Steps

On Request Only

Commitments for first close (€20-25M target)

Contact: investors@text.com

Phone: +34 XXX XX XX XX

This presentation is confidential and intended solely for qualified investors.
Past performance does not guarantee future results.

Due Diligence Materials Available

• Detailed financial model
• Property-level analysis
• Legal structure documentation
• Market research reports

Timeline

• First close: Month 4
• Final close: Month 6
• First deployment: Month 5
• Initial distributions: Year 2

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