Month: July 2019

Caixa Geral de Depósitos to Sell €800-Million Portfolio of NPLs

30 July 2019

Following in the footsteps of Novo Banco and BPI, the Caixa Geral de Depósitos (CGD) announced that it was preparing to sell an €800-million portfolio of non-performing loans. The loans include debts in Portugal and abroad, with or without collateral.

Banks in Portugal have been reducing their exposure to bad debts under pressure by European regulatory authorities. CGD’s NPL ratio stood at 7.3% in June. All European banks must lower their exposure to below 5% in the coming years.

Original Story: Economia Online – Alberto Teixeira

Adaptation/Translation: Richard D. K. Turner

Residential Bank Valuations Hit New Series High

30 July 2019

Average residential bank valuations rose once again in June, following successive increases since March 2017, to a series high (since 2011). The valuations, which are performed on homes linked to mortgage applications, rose by seven euros to €1272/m2, according to Portugal’s statistical agency, the INE. The figure rose by 0.6% month-on-month compared to May, and by 7.8% year-on-year.

The price of flats rose by 10 euros to 1353 euros/m2 in June (up 9.3% y-o-y), while in the price of houses increased by 5 euros to €1142/m2 (up 6% y-o-y).

Original Story: Idealista

Adaptation/Translation: Richard D. K. Turner

Acquiring a Home Now Less Expensive Than Renting

28 July 2019 – Richard D. K. Turner

Purchasing a 90-square-meter home in Portugal implies a monthly cost that is between 14% and 61% less than the equivalent rental cost for a similar home in the same area, according to a study by Century 21.

The five municipalities with the highest housing effort rates for purchasing a home are Lisbon (58%) followed by Lagos, Loulé and Tavira, all at 52% and finally Albufeira (48%). The five municipalities that have the lowest effort rate include Guarda (16%), Bragança and Santarém (both 15%), Castelo Branco (14%) and Portalegre (13%).

For rentals, the five municipalities with the highest effort rate are Lisbon, Albufeira (both 68%), Loulé, Cascais and Amadora, all at 57%. The municipalities with the lowest effort rates are Portalegre, Castelo Branco (both 29%), Guarda, Viseu, Vila Real and Santarém (all 28%).

Original Story: Jornal Econômico – Rodolfo Alexandre Reis

Municipalities Grant Licensing for Almost 19,000 New Homes in First Half of 2019

28 July 2019 – Richard D. K. Turner

From January to June, municipal authorities in Portugal granted licensing for 18,806 homes, part of 7,626 residential developments, according to Confidencial Imobiliário. Of those, new builds account for 81%. The redevelopment of existing homes accounted for 1,743 projects, with a total of 4,195 homes.

Between January 2017 and June 2019, new residential construction added to 74,409 homes in 32,707 housing projects, equivalent to 80% of the number of the homes granted licensing during the period.

Apartment buildings with more than 100 flats accounted for just eight new buildings during the first half of 2019. Meanwhile, buildings with 20 flats or less made up 80% of new construction.

Original Story: Dinheiro Vivo

AM Alpha Acquires BPlanet Shopping Centre South of Lisbon for €55 Million

28 July 2019 – Richard D. K. Turner

The Munich-based family office AM Alpha fund, in conjunction with Nordrheinische Aerzteversorgung, acquired the BPlanet shopping mall in Barreiro in a deal reportedly worth around 55 million euros.

The 35,369-square meter shopping centre, built in 2019 by a French construction company, has 1,700 parking spaces and an occupancy of 98%. The 73 existing tenants include companies like AKI, Decathlon and Jumbo.

This was the German fund’s second acquisition in Portugal after it acquired Mapfre’s headquarters at Rua Castilho, in Lisbon, for 16.7 million euros. The building is currently undergoing renovations.

Original Story: Economia Online – Rita Neto

Novo Banco Liquidates Imovalor After Sale of Last Asset

27 July 2019 – Richard D. K. Turner

Novo Banco has liquidated its Imovalor fund after selling its last asset, a plot of land with more than 21,000 square meters in Campo Pequeno. The fund sold the property, which is located on Lisbon’s Avenida Sacadura Cabral, near number 40, in November to Roundhill Capital and TPG Real Estate for 36 million euros.

The property in Campo Pequeno has a total of 21,450 square meters and comes with approval for the construction of an allotment with approximately 39,000 square meters of above-ground surface area. The buyers are looking to move forward with a mixed-use development, including a 390-bed student residence and 250 flats.

After the fund’s liquidation, the proceeds of the sale were transferred to Novo Banco.  

Original Story: Jornal de Negócios – Rita Atalaia

Residential Price Growth Slows in 2019

27 July 2019 – Richard D. K. Turner

Housing prices in Portugal continued their years-long rise, reaching a ten-year high. However, at the same time the trend showed signs of stabilising. On the other hand, no fall in prices is expected.

Data from Portugal’s statistical agency, the INE, showed that the number of homes sold increased by 7.6% year-on-year in the first quarter of 2019, the lowest year-on-year rise in the last four years. At the same time, transactions increased by just 6.6% in the Lisbon Metropolitan Area. Nationally, the average annual increase in the housing price index slowed for the third consecutive quarter to 9.5% from 10.3% in the fourth quarter of 2018.

Original Story: Jornal de Negócios – Pedro Curvelo

Housing Prices in Portugal Rise Above €1,000/m2

27 July 2019 – Richard D. K. Turner

Housing prices in Portugal reached a record-high of €1,011 per square meter in the first quarter of 2019, according to data published by the country’s statistical agency, the INE. The figure represents an increase of 1.5%, q-o-q, or 6.4%, year-on-year. Nevertheless, the pace of growth showed signs of slackening.

In the past three years, housing prices rose by a total of 21.8%, from a low of €830/m2. The one-thousand-euro figure and the 6.4% growth rate mask, however, significant regional disparities. Lisbon has traditionally been the most expensive city in the country. There, the average square meter currently costs 3,111 euros, up 20.5%. The city of Amadora saw the highest rate of growth, jumping by 22.7% to 1,304 euros per square meter. Price growth in Porto also reached 22%.

Original Story: Jornal de Negócios – Rafaela Burd Relvas

Banco Montepio Sells €321-Million Portfolio of NPLs to Panorama Jubilante

ming loans with a total gross value of 321 million euros to Panorama Jubilante S.A. João Bugalho, the CEO of Whitestar, which is in turn owned by the Arrow Global Group, manages Panorama.

27 July 2019 – Richard D. K. Turner

Banco Montepio announced that it had sold a portfolio of non-performing loans with a total gross value of 321 million euros to Panorama Jubilante S.A. João Bugalho, the CEO of Whitestar, which is in turn owned by the Arrow Global Group, manages Panorama.

While the gross value of the portfolio is 321 million euros, encompassing approximately 13,000 loans, the two firms declined to reveal its purchase price or its net value after impairments. Therefore, the effect of the sale on Banco Montepio’s books is also not known.

In March, Banco Montepio’s exposure to non-performing assets accounted for 14.3% of its total portfolio, the second-highest in Portugal’s banking sector. Seeking to reduce its exposure, Banco Montepio had sold another €239-million portfolio of non-performing loans at the end of last year.

Original Story: Jornal Expresso – Diogo Cavaleiro

Novo Banco Finalises Sale of Project Sertorius to Cerberus

25 July 2019 – Richard D. K. Turner

Novo Banco has finalised the sale of a €400-million real estate portfolio, denominated “Project Sertorius,” to the American private equity firm Cerberus. Finsolutia also had submitted an offer which the bank ultimately rejected in favour of Cerberus’ bid.

Sertorius consists of 200 assets, largely undeveloped plots of land along with some industrial, residential and commercial properties, mostly located in Lisbon and Setúbal.

At the end of last year, Cerberus also acquired a €600-million portfolio of real estate assets from Santander Totta, along with BES Vénétie from Novo Banco at the end of 2018 for about 50 million euros.

Novo Banco is seeking to reduce its exposure to NPLs and real estate, submitting to demands of European regulators.

Original Story: Economia Online – Alberto Teixeira