The Marquis of Vale Flor had made a fortune in coffee plantations on Portuguese colonies of São Tomé and Príncipe, islands in the Gulf of Guinea in Africa, and had acquired lands in Alcântara, with the intention to build a Lisbon residence.

The group's initial plan's were stalled until 1995, when they were approved by the Portuguese Direction-General for Cultural Heritage.

The ensuing project, refurbishing the palace and expanding its annexes, was executed by architect Manuel Tainha and was completed in 1997.

Numerous details throughout the palace are attributed to famed architect Miguel Ventura Terra.

After the palace's construction, an extensive interior decoration campaign was executed between 1910 and 1915, under the auspices of designers Constantino Fernandes, Carlos Reis e Eugénio Cotrim.