Abel Mascarenhas Tapped to Lead Banco de Fomento's Real Estate Fund Manager
A major leadership change has been announced in Portugal's institutional real estate sector, as Abel Mascarenhas, the current Chief Investment Officer at Vanguard Signature (part of Vanguard Properties), will take over the leadership of Fomento, the real estate investment fund manager of the state's Banco Português de Fomento. The company announcement, pending formal confirmation this autumn, signals a strategic shift for the entity, which manages a portfolio valued at over €400 million. Mascarenhas is a highly respected figure in the industry, having previously presided over the management of IFRRU 2020, the €1.4 billion financial instrument for urban renewal.
This professional development is a key industry update, impacting how state-influenced real estate funds are managed and deployed. Fomento's business model is primarily focused on sale-and-leaseback operations, acquiring properties from Portuguese companies to provide them with liquidity. The appointment of a leader with a strong background in private luxury development and large-scale public-private financial instruments is expected to bring a more dynamic approach to Fomento's five funds. The change in leadership was initiated by Gonçalo Regalado, the president of Banco de Fomento, who is restructuring the leadership teams across the group.
The new service and business model under Mascarenhas will have to address several challenges outlined in Fomento's strategic plan for 2025-2027. A primary constraint is a lack of capital to meet the demand for new operations, making the fund dependent on existing tenants repurchasing their properties to generate liquidity. Another pressing issue is a decline in the rent collection rate, which fell to 83% in the first half of 2024. The new strategic plan calls for promoting portfolio rotation, leasing 15 vacant properties, and expanding the number of companies the funds can support. The target for the rent collection rate is 90% by 2026.
This company focus is critical for the market, as Fomento plays a significant role in providing alternative financing for Portuguese businesses. The fund manager's portfolio reached a historic high valuation of over €400 million at the end of 2024, a 3.8% increase. However, it also faces a significant liquidity event in November 2025, when it must reimburse €41.1 million to participants in two of its funds that did not approve a maturity extension. Mascarenhas's leadership will be crucial in navigating this financial landscape. His appointment, justified by his extensive academic and professional curriculum, including a PhD in Public Administration and postgraduate studies in finance and real estate, is aimed at strengthening the management team to meet these challenges. The net result target for 2026 is set at €1.18 million, a more conservative goal than the €1.47 million projected for the current year, reflecting the anticipated challenges.
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