La Vie Funchal is a modern and well-established 16,000 sqm GLA shopping centre, strategically located in the heart of Funchal's downtown area, in Madeira. It opened in 2007 and has since become the most visited retail scheme on the island, with more than 10 million in footfall. Due to its prime location, it benefits both from the tourism flow to the historical centre and the nearby cruise terminal, as well as from the local population living and working in the surrounding area.
For several years, the asset was locked under a class action suit and stranded within the insolvency of a large Iberian property group.
ECS acquired 50% of the asset’s PropCo through a restructuring within its parent company’s insolvency. Following the takeover, ECS operated changes in the asset management strategy, targeting a differentiated approach, repositioning the asset and the tenant base to exclusive brands within Madeira and balanced tenant mix. The rent level and NOI generated increased significantly, with occupancy reaching 100%. Additionally, the increased revenue stream from parking facilities, both from visitors and locals, geared the asset towards an infrastructure play. Finally, the class action was terminated in 2022 with an agreement ratified in court.
ECS’s active participation on repositioning the asset and resolving the litigation surrounding it, led to a successful divestment in 2023 to a real estate fund.