After successfully reaching its milestone with the full closing of Fund I, subscribed by 269 foreign investors, Mercan Group, one of the largest producers of Golden Visa products in Portugal, is accelerating its growth in the Portuguese funds market.
Building on this momentum, Mercan is now sponsoring the launch of the €121 million Mercan Private Equity Fund II, which leverages its multi-brand hotel platform with IHG, Marriott, and Wyndham to scale institutional-grade hospitality assets across Portugal and Greece.
This milestone reinforces confidence in the Canada-rooted, EU-based developer-operator’s model of combining investment migration with deliverable, revenue-generating assets that create positive local impact.
The successor vehicle, Mercan Private Equity Fund II (MPEF II), is targeting €121 million and blends operating hotels with high-potential development projects to balance near-term income and long-term value creation.
At launch, MPEF II is expected to invest in three 4-star assets:
- Hotel Indigo Albufeira by IHG (Portugal) – Operating
- Quinta da Praia Residence Inn by Marriott (Portugal) – Under development in the Algarve
- Corfu Acharavi Hotel Collection by Wyndham (Greece) – Operating
Mercan Group is a differentiated, multi-brand platform, underscoring its claim as Portugal’s only multi-branded hospitality developer. MPEF II is expected to raise capital from approximately 240 investors. MPEF II is managed by Finprop Capital SOIC, S.A. and has been approved and incorporated in CMVM, and is already open for subscription.
Profitable, Redeemable Investment Plus EU Residency
Structured as a venture capital fund rather than a traditional real estate vehicle, MPEF II fully complies with Portuguese regulations and qualifies under the country’s residency-by-investment framework, offering investors a regulated, transparent pathway to residency with clearly defined exit terms.
Investor terms include:
- 2% fixed annual return
- A guaranteed buyback by Mercan SPV’s, offering investors a defined exit path from year six through year twelve through call and put option;
- No subscription fee (management fee paid by the fund)
- Lifestyle benefits, including seven complimentary nights per year across Mercan’s hotel portfolio and portfolio-wide discounts
Jerry Morgan, CEO at Mercan Group, said MPEF II reinforces the firm’s commitment to capital security, long-term value, and hospitality excellence. Partnering with IHG, Marriott, and Wyndham, adding Morgan, gives investors access to projects designed for “stability and growth,” while supporting tourism development in Portugal and Greece.
Jordi Vilanova, President at Mercan Properties, said the Fund highlights Mercan’s role as a “key driver” of hospitality development in Portugal and Greece, aiming to generate returns that create jobs, support tourism, and deliver tangible community impact.
Mehdi Kadiri, Executive Vice President at Mercan Properties, said: “The proof of concept from Fund I, with pre-approvals and biometrics completed, and full subscription achieved within 16 months of inception, Portugal’s largest closed-end private equity fund for the Golden Visa, is truly a milestone. We are very proud to launch Fund II, which is even stronger than Fund I, as it targets operating assets.”
Mercan Group: Shaping the Future of Hospitality Investment
With over 35 years of experience and a presence in more than 30 countries, the Mercan Group continues to lead with a global vision and a strong local impact.
Mercan Group currently oversees a portfolio of 34 hotels and projects, including 15 operational hotels in Portugal and one in Greece. By 2030, Mercan plans to open 17 new hotels in Portugal, reinforcing its long-term commitment to the hospitality sector and to the country’s economic development.
For more information about the Mercan Private Equity Fund II (MPEF II), please contact Mercan Group.
