Merlin Buys Office Building In Portugal For €29M

19 April 2017 – Expansión

Last week, Merlin Properties announced a new investment in the Portuguese market. The Socimi in which Santander, BBVA and Popular own a stake, has acquired the Central Office building, located in the Expo area of Lisbon.

The property, located on the main avenue of Parque de las Naciones in the Portuguese capital, has a surface area of 10,310 m2, spread over 13 floors, plus 265 parking spaces.

Merlin has paid €29 million for the building, in other words, around €2,850 /m2, which places its initial gross yield at 6.8%. The property is leased out in its entirety to “first-rate companies”, said the Socimi.

The Socimi, which owns assets worth more than €9,800 million, has identified Madrid, Barcelona and Lisbon as the main destinations for its office investments. In the Portuguese capital, it already owns 50,000 m2.

Merlin Properties, which debuted on the stock market in the summer of 2014 without any assets on its balance sheet, closed 2016 with a net profit of €582.6 million and a recurrent EBITDA of €303.6 million, after recording revenues from property rentals amounting to €351 million.

The Socimi’s share price rose on the stock market on Tuesday (11 April, the date the office purchase was announced) by 0.23%, taking the share price to €10.84. Its market capitalisation exceeds €3,500 million.

Original story: Expansión (by Rocío Ruiz)

Translation: Carmel Drake

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