EL SILENCIOSO DEAL
Subvertere Capital is excited to present our inaugural deal, perfectly aligned with the vision that has guided our organization from the outset. Our investment strategy centres around addressing fundamental human needs as described in Maslow’s hierarchy, while also targeting asymmetric opportunities outside of the traditional “Five Eyes” jurisdictions. This first venture is rooted in both, offering compelling upside potential by addressing the significant housing shortage in one of Argentina’s most dynamic regions: VacaMuerta.
Vaca Muerta, home to some of the largest untapped oil and gas reserves in the world, is undergoing a renaissance. With major global energy companies scaling up operations and Argentina’s economic liberalization under President Milei, we believe this region is poised for rapid growth. Our project, “El Silencioso,” directly addresses a critical challenge in Vaca Muerta: the lack of worker housing. This shortage presents a unique and timely opportunity for us to step in and develop much needed infrastructure, offering both social and financial returns.
SECTOR HIGHLIGHTS
>> Vaca Muerta is the 2nd largest gas and 4th largest oil deposit in the world, with an estimated 16 billion barrels of oil and 308 trillion cubic feet of natural gas, which has a forecasted life of an additional 40 years.
>> Forecasts estimate production capacity of up to 1 million bpd could be reached by 2030.
>> Global O&G giants such as Chevron, Shell, TotalEnergies, ExxonMobil, Equinor, Petronas, BP, YPF, Vista, etc. are operating and investing in the Vaca Muerta region.
>> The shale quality, production incentives, tax exemptions, advancements in technology, and labour concessions for this area have helped to reduce operational costs and improve efficiency. Breakeven costs are as low as $30–$40/bbl.
>> Crude oil exports: 43% go to the US, 22% to Brazil, and 21% to Chile.
>> Gas exports: 55% go to Brazil, 25% to Chile, and 10% to Bolivia; Staring LNG exports to Asia and the EU.
>> Huge infrastructure catalysts coming online from 2023 all throughout 2029, such as new oil and gas pipelines, LNG terminals, and expanded capacity on refineries, pipelines, and roads. Upgrades to the national grids and new foreign-investor-friendly legislation.
FUND # 1 EL SILENCIOSO PHASE-II
A real estate construction project in the township of Anelo, at the heart of Vaca Muerta. The development consists of more than 20,000 square meters of apartment development, delivering almost 350-units and more than 1000-beds to provide worker accommodation to the oil & gas sector. This project forms part of the much larger El Silencioso master-plan and is split into two phases (a) & (b) to be constructed over 18 months in 2025 & 2026, with the first units ready for tenanting by the end of 2026. The project delivers impressive rental yields which far exceed typical residential real-estate projects, along with significant capital appreciation.
FUND # 2 EL SILENCIOSO MASTER PLAN
El Silencioso Masterplan is a 37 hectare development project in the prime location adjacent to the town center of Anelo. The Masterplan has council approval to develop 400,000 square meters of mixed residential and commercial space along with riverside and canal parkland areas, bike and walking paths, along with an impressive town square with retail and light commercial space and multiple smaller parks and light retail scattered throughout the project. At completion, the project will provide more than 20,000 beds across 5,000 apartments, hotels and houses, catering to the booming demand & chronic bed shortage to the Vaca Muerta Oil & Gas industry. This project is poised to become the new heart of Anelo, as it backs directly onto the current main street, only 200 meters from the current town square and routa provincial that dissects the town. More importantly, the project has riverfront canals and lagoons across two thirds of its boundaries, providing the natural path for the town to gravitate to the river as it’s blossoms into a city! Subvertere Capital is excited to be a strategic partner in the development of this project, turning the small township of Anelo into a thriving city servicing Vaca Muerta for decades to come.
