With 115 properties under management in Luxembourg, Arca Properties offers flexible housing solutions in Luxembourg’s competitive real estate market, particularly for B2B clients. Managing partner Matheus Sequeiros describes the importance of long-term relationships, over-delivering and how other entrepreneurs can seek inspiration.
Since its launch in 2019, Arca Properties’ main mission has been to provide flexible housing solutions with premium services, even if it has had to pivot slightly over the years. Today it counts more than 50 corporate clients, including Amazon and RTL, and accommodates around 7,000 tenants per year, according to managing partner Matheus Sequeiros.
For relocations, stays tend to be around 45 days on average, whereas for an individual on a longer business project or mission, it could be around four months. Less often, individuals may also seek out short-term rentals, i.e., to avoid being in their homes during noisy renovations.
Although previously counting more properties in its portfolio in other locations across the grand duchy, Arca Properties now focuses on Luxembourg City, given the demand by corporate clients.
Things don’t always go as planned
The decision to stay more central was a result of the day-to-day operational impracticalities of being based across the country, something Sequeiros says the team had initially underestimated but then pivoted accordingly. Entrepreneurial expectations can be hit with unexpected challenges, of course, and one obvious example of this was during the covid-19 pandemic. Like others, Arca Properties was hit with a wave of cancellations, leaving property owners frustrated at their loss of revenue. “We had to change strategy internally and reached out to local organisations, like the government, the chamber of real estate and so on, and they helped a lot by connecting us to people in need,” Sequeiros recalls. “We were able to turn our portfolio, which [at the time] had a barely 10% occupancy rate, to literally 95% occupancy rate across our whole portfolio.”
There have been other pivots, including leadership changes along the way, and Sequeiros says he’s learned a lot about wearing different hats. At times, being patient has been difficult, but such situations “forced me to reach out to consultants, which was the best decision I ever took in my life. That’s where I understood the power of asking for support, and people with experience were guiding me through my transitions and retaking control of the company.”
Three tips for entrepreneurs
When asked what advice he’d give budding entrepreneurs, Sequeiros says it’s first and foremost about showing up and getting inspired: “You won’t know everything and therefore be around places where people are sort of doing what you want to,” like at entrepreneurial-focused events.
He also recommends that ideas are worth testing, validating and re-testing, also within these communities. “You would be surprised how many people are so supportive that they’re really willing to listen and give you actual advice.”
His third tip? To over-deliver on value, even if it’s for something that might seem simple. When you over-deliver, he adds, “those people will remember and appreciate you and potentially also want to give you value.”
Sequeiros saysArca Properties’ values centre on the “Golden Rule” and fostering long-term relationships. “We have very close relations with our owners, and there’s a strong connection and loyalty between the owners and us,” he says, adding: “Reputation is a very big thing: it takes you years to build but can take you seconds to destroy, so never underestimate that.”
