Optylon Krea
Sponsor
In this exclusive interview, William Tonnard, President & COO of Optylon Krea, and Hakan Kodal, Chairman of Optylon Krea, discuss why Portugal’s Golden Visa program remains particularly attractive to Hong Kong investors.
William, having lived in Hong Kong for seven years, how has that experience shaped your perspective on investment migration?
William Tonnard: Living in Hong Kong reminded me how quickly things can change, even in what appears to be a stable country. It reinforced the importance of having a backup plan.
As a French citizen, I was pleased to obtain my Hong Kong permanent resident card after spending so many years there, viewing it as a potential backup in case of economic or political instability in France or even Europe.
This experience has made me a strong advocate for having alternatives and preparing for the future.
What makes Hong Kong investors unique in the Golden Visa market?
William Tonnard: Hong Kong investors are among the most sophisticated investors. They are very financially knowledgeable and understand well what type of product they’re being offered.
They’re typically willing to take calculated risks because they understand risk-return relationships well. Most importantly, they usually already have diversified investment portfolios, which makes them well-positioned to consider additional investment opportunities.
What are the key advantages for Hong Kong investors considering the Portuguese Golden Visa fund route?
William Tonnard: For Hong Kong investors, the process is relatively straightforward.
Hakan Kodal: Since most Hong Kong investors already have diversified investments, the €500,000 investment requirement typically represents just a small portion of their wealth, making it easier to participate in venture capital funds.
Why is Portugal particularly attractive right now?
Hakan Kodal: Portugal offers a combination of security and stability that’s increasingly rare in Europe. While it may shift between left and right politically, it remains more stable than many other European countries currently experiencing various challenges.
The country offers an attractive lifestyle, security, and significant tax incentives. These factors have made it particularly appealing to international investors, with Americans now comprising about 40% of our client portfolio.
How has the market evolved since you started offering fund-based Golden Visa options?
William Tonnard: When we first started to advise funds around 2018-2019, it was challenging as most people were focused on real estate only.
Hakan Kodal: 2020, however, became our best year in fundraising during COVID because investors couldn’t travel to see properties, which made them more open to fund investments.
This shift demonstrated that sophisticated investors understand the value of diversifying through fund investments rather than solely focusing on physical real estate.
Given recent market developments, what should potential investors be aware of?
Hakan Kodal: Currently, there’s some confusion in the market with various new funds emerging. It’s crucial to understand that this isn’t just about Golden Visa eligibility – it’s about capital markets regulations.
The CMVM (Portuguese Securities Market Commission) is very strict about ensuring compliance with capital markets regulations. With about 35 funds and licensed managers currently in the market, investors need to work with established, compliant operators who understand both the immigration and financial aspects of these investments.
What should Hong Kong investors be cautious about when considering Golden Visa funds?
William Tonnard: It’s crucial to look beyond just Golden Visa eligibility. Investors should examine the fund managers’ track record, understand the investment strategy thoroughly, and ensure the product is solid from an investment perspective.
Hong Kong investors, being sophisticated, are well-equipped to conduct this due diligence. They should focus on funds that comply not just with the letter of the law but also its spirit, avoiding products with questionable structures like buyback guarantees.
Your company was among the first to offer Golden Visa-eligible funds. How did that shape your approach?
William Tonnard: When we started in 2017, we were among the first, if not the first, to launch a Golden Visa-eligible fund. This came from our banking sector background – myself, Hakan, and Charles were all from the banking industry.
While many were creating products just to satisfy Golden Visa requirements, we wanted to create something that was financially viable and attractive for investors. This financial background has been crucial in developing products that deliver both good service and good returns.
How has your Hong Kong experience influenced your development of Ando Living?
William Tonnard: My experience in Hong Kong significantly influenced our serviced apartment and branded residence concept. The serviced apartment sector is extremely developed in Asia and the Middle East but is still nascent in Europe.
I saw firsthand how expats in Hong Kong would stay for varying periods – two months, three months, five months – either as consultants on assignment or while looking for permanent accommodation.
Similarly, many Asian investors appreciate branded residences in capital cities where they can have a worry-free second home that’s maintained and managed professionally while generating income when they’re not there.
Why should Hong Kong investors consider service apartments and branded residences in Portugal?
William Tonnard: There are several compelling reasons. First, it offers genuine diversification. Hong Kong investors are typically very Asia-centric, with assets in Hong Kong, Singapore, Thailand, and Vietnam.
European real estate provides true geographical diversification. Secondly, the returns in Europe are quite attractive – we’re looking at around 6% yearly return on rent alone, excluding potential capital gains.
Hakan Kodal: These investments are professionally managed, making them completely hassle-free. You won’t need to worry about maintenance issues or property management – everything is handled by professional operators.
How do the yields compare between Hong Kong and Portuguese real estate?
William Tonnard: In Hong Kong, rental yields have been historically very low, around 0.5% to 1%, because property values were so high. Many apartments remain empty as owners focused purely on capital appreciation.
In contrast, Portugal offers much more traditional and stable returns. In Lisbon, investors can achieve good yields because prices aren’t inflated – they’re at market levels that generate sustainable returns, while still offering potential for capital appreciation.
Could you elaborate on the current real estate market situation in Hong Kong?
William Tonnard: The Hong Kong real estate market is currently facing some unique challenges. Many towers and apartments stand empty because Chinese buyers historically purchased them purely for capital appreciation without interest in rental income.
This approach made sense when the market was growing 30% per year and rental yields were only 0.5-1%. However, with Hong Kong’s currency being pegged to the US dollar, rising US interest rates directly impact Hong Kong’s market.
Combined with reduced expatriate presence compared to places like Singapore, this has created significant market pressures.
William Tonnard will be in Hong Kong and Singapore with members of the Ando Living team between the 4th and 10th of November, you can book a one on one via this link https://lnkd.in/dnnw7rJz.
If you are not in Hong Kong or Singapore on those dates, you can book a meeting by emailing them directly at sales@optylonkrea.com
