8d • General discussion
What Good Structuring Actually Looks Like — Castello Deal Breakdown
Most investors evaluate deals by looking at the return number first.
That's backwards.
The return number is an output. It's the result of structuring decisions made months before you ever see a pitch deck. Change the structure, and the same project, same location, same developer produces a completely different outcome.
Here's a real example.
We recently evaluated a deal where the initial structure projected a 32% ROI for equity participants. After four structuring changes the projected ROE moved to 55%.
Same building. Same units. Same market. Same developer.
What changed:
1. Avoiding the land acquisition cost. The developer already owned the plot. By entering post-acquisition, equity capital went directly into construction.
2. A distribution structure that returned capital before the final exit. Instead of locking equity until project completion, the structure allowed partial capital returns as units reached pre-sale milestones.
3. Treating marketing as a capital efficiency lever, not a cost centre. A higher marketing budget accelerated pre-sales, which shortened the timeline. Shorter timeline = less cost of capital.
4. Using the Portuguese tax structure deliberately. The corporate entity and CAEP structure were designed to minimise withholding on distributions.
None of these are secrets. But most developers don't structure this way because they're optimising for their capital stack, not for equity participant outcomes.
This is what we evaluate when a deal comes through Portugal REI Club.
Discussion: When you evaluate a deal, what's the first structuring question you ask?
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What Good Structuring Actually Looks Like — Castello Deal Breakdown
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