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.
>> Oil production is increasing 30% year-over-year.
>> In 2Q 2024, Argentina’s natural gas production hit a 21-year high.
>> YPF and Petronas started construction of the GNL pipeline and Vaca Muerta Sur pipeline to move oil and gas from Vaca Muerta to the Atlantic Coast.
>> Golar LNG signed a 20-year deal with Pan American Energy to develop LNG infrastructure to export Vaca Muerta gas globally.
>> The Nestor Kirchner pipeline connecting northern Argentina is being extended to carry gas from Vaca Muerta to Brazil, Uruguay and northern Chile.
>> The Oldelval oil pipeline connecting Vaca Muerta with refineries in Bahia Blanca is under expansion to double capacity.
>> The national and local governments have supported and approved Vaca Muerta expansion with new investor-friendly schemes.
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 2025. The project delivers impressive rental yields which far exceed typical residential real-estate projects, along with significant capital appreciation. A detailed Information Memorandum is available for download.
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.
