Finangeste Opens New Office Building at Lisbon’s Rua Castilho, 50

30 December 2020

Finangeste has inaugurated a new office building on Rua Castilho in Lisbon, known as Castilho 50. The building underwent a significant renovation, with work on the façade, basements, common areas, and office floors.

The building has ten floors of office, with 7,425 m2 of above ground constructed area. The building also boasts a retail gallery on the ground floor and 92 parking spaces.

In a statement, Paul Henri Schelfhout, Finangeste’s director, stated that “The urban rehabilitation works of an office building with these characteristics and in this location are a way to respond to the current levels of demand in the Lisbon office market and, above all, provides a message of hope during the current situation… We continue to actively invest in assets in the cities of Lisbon and Porto, and this new development is a further step in this direction.

Finangeste is currently finalising another building in Lisbon’s historic centre and is about to complete a new mixed-use development with housing, offices and commerce in Oeiras. The company is investing a total of about 500 million euros in Portugal.

Original Story: Idealista

Translation: Richard Turner

City of Guimarães to Receive €15-Million Investment in Private Student Housing

30 December 2020

According to the municipality, Guimarães will be the site of a new, 632-bed private university residence. The 15-million-euro investment will include study areas, movie theatres, gaming rooms and a fitness centre, along with world-class rooms in Azurém, 650 meters from the University of Minho. The facility is scheduled for inauguration in October 2022, with construction beginning in the spring of 2021.

The Guimarães City Council stated that “The project, in the final approval phase at the city council, foresees the development of distinctive rooms, study and social areas, cafeteria, television, cinema and gaming rooms, fitness centre and laundry, among other facilities.”

The 632-bed facility will be part of the Azurém Collective, a student residence that will follow the international accommodation format specifically designed for students, known as Purpose Built Student Accommodation.

Original Story: Observador

Translation: Richard Turner

Residential Bank Valuations Increase to €1,144/m2 in November

30 December 2020

According to data released by the National Statistics Institute (INE), the average value of bank valuations of home for mortgage applications reached 1,144 euros in November. The figure is equivalent to a 13-euro rose over October.

The data covers approximately 27,000 bank valuations, 8.2% more than in the same period last year. The rate of change was 6.3% year-on-year (5.8% in October).

The most intense variation was seen in the Algarve (7.3%), with the least in the Autonomous Region of Madeira (2.5%).

Original Story: Notícias ao Minuto

Translation: Richard Turner

Matosinhos to Invest €15 Million in Housing

30 December 2020 

Based on its 2021 MatosinhosHabit Activity Plan and Budget, the municipality of Matosinhos is set to implement a series of innovative measures for the local housing.

Under the programme First Right and within the scope of an agreement with the Institute of Housing and Urban Rehabilitation (IHRU), MatosinhosHabit intends to develop housing resources for families currently considered to be in precarious conditions and which do not the financial possibility to access adequate housing.

The municipality of Matosinhos will use the 15-million-euro investment to fund the renovation of several housing estates.

Original Story: Diário Imobiliário

Translation: Richard Turner

Habits Changing in Purchase and Sale of Homes

29 December 2020 – Ana Custódio

The housing market is proving resilient to the economic crisis generated by the Covid-19 pandemic, although official data show some market volatility.

The National Institute of Statistics (INE) reported that the average interest rate on mortgage loans in November fell to 0.918%, a month-on-month drop of 1.4 basis points. Contracts concluded in the last three months had an average interest rate of 0.857% (0.914% in the previous period).

Outstanding loans reached an average of 54,915 euros, while monthly instalments stood at 228 euros.

According to the INE, 45,136 homes were sold in Portugal in the third quarter of this year for a total value of €6.752 billion, as Lisbon once again had the largest number of transactions. In an atypical year dominated by news of the coronavirus, the Centre, North and Alentejo regions saw their relative weight in total house sales in Portugal increase compared to Lisbon and Porto.

According to Moody’s, the change is because “demand for housing in the main urban centres will drop significantly, and consumers will look for larger homes that can accommodate teleworking.”

Translation: Richard Turner

Pacoli to Invest €30 Million in Santo Tirso

29 December 2020

Raul Ramiro Palavras, who founded the real estate investment firm Pacoli, will partner with the French group B&B Hotels to build new hotels. Pacoli is investing close to 30 million euros in Santo Tirso, two-thirds of which will fund the construction of 91 luxury flats,  which will be completed during next year.

Pacoli is also building a 74-room, three-star hotel, operated by the French group B&B Hotels, which is controlled by the US bank Goldman Sachs. “The first stone was laid on 21 December, and next to the future hotel we will build 31 flats, in a total investment estimated at 8.5 million euros,” said Raul Ramiro Palavras.

Original Story: Jornal de Negócios – Rui Neves

Translation: Richard Turner

€20-Million Investment in Second Phase of Major Development in Comporta

29 December 2020

The French investor Claude Berda and Paula Amorim will invest approximately €20 million in an ongoing development in the region of Comporta. Work on the infrastructure of the second lot of the project, this time in association with Paula Amorim, will begin on January 5th.

The second phase of the Dunes project, with an area of about 551 hectares, surrounded by a ring of pine trees of 460 hectares, is located in Carvalhal, Alcácer do Sal. José Cardoso Botelho, general manager of Vanguard Properties, told Expresso that the project includes a clubhouse for the golf course, and “has a cost close to 20 million euros.” Vanguard will fund 75% of the investment, with the remaining 25% the responsibility of Amorim Luxury.

Vanguard is already working on the Tower, in the municipality of Grândola. The total value of the firm’s planned investments in the area exceeds €2.3 billion, €1.5 billion of which will go to the Dunes project, with another €850 million going to the Tower. Mr Botelho added that “the construction of two tourist lots, one residential, and two hotels should start in the first quarter of 2022 so that everything can be completed by the end of 2024 or the beginning of 2025.”

Original Story: Expresso – Hélder C. Martins

Translation: Richard Turner

Market for Portfolios of NPLs Peaks at Year-End with Sale of BCP’s Ellis and Webb and Novo Banco’s Carter

29 December 2020 – Ana Custódio

According to an article in Eco Sapo, BCP is preparing to sell the “Ellis Project” to Davidson Kempner (which also acquired Nata 2 from Novo Banco) and the “Webb Project” to Arrow (which owns White Star and Norfin in Portugal) and Christofferson, Robb & Company, LLC. (CRC Fund).

The Ellis Project was initially worth 300 million euros, but the withdrawal of some loans reduced its value to about 170 million euros. The “Webb Project”, a more granular portfolio with an initial value of 450 million euros, is also expected to have been adjusted.

Both portfolios have one thing in common: they include loans to high-profile corporate debtors. While BCP has been under pressure to finalise its sales by the end of this year, it is not yet known when the transactions will be completed, nor for what amount.

However, Novo Banco has already confirmed the sale of Project Carter for 37 million euros (€79 million gross) to Arrow and the CRC Fund. Carter refers to the Kiwi rugby player Dan Carter, considered one of the best in the world.

In a statement to the Securities and Exchange Commission (CMVM), the bank confirmed that the portfolio includes some 12,000 loans, which unlike other operations over the past two years, does not contain assets covered by the Resolution Fund’s guarantee.

 

Translation: Richard Turner

Government Ends Golden Visa Programme in Lisbon and Porto

29 December 2020 – The Portuguese Government’s Council of Ministers has approved a measure to end the golden visa programme in Porto and Lisbon, to direct more investment towards the country’s interior, low-density regions. The change to the law will end the influx of real estate investments through the Golden Visa programme to Portugal’s most sought-after areas, primarily Greater Lisbon and Greater Porto.

Mariana Vieira da Silva, the Minister of State and the Presidency, announced at the press conference that followed the Council of Ministers that “a decree was approved – under the terms of the legislative authorisation contained in the State Budget for 2020 – amending the regulatory framework covering investment residence permits with the aim of promoting foreign investment in low-density regions.” The minister added that the alteration is justified because the situation had undergone a significant change since the programme was enacted. The programme allows foreign citizens to obtain a residence permit in Portugal by investing at least half a million euros in real estate.

According to Mariana Vieira da Silva, the government hopes that the change on the regulations will help channel investment into the country’s interior, boosting “urban requalification, cultural heritage, activities with high environmental or social value, productive investment and job creation.”

Original Story: ECO SAPO – Leonor Mateus Ferreira & Flávio Nunes

Translation: Richard Turner

Municipality of Porto Seeks to Acquire 17 STCP Buildings for Over Six Million Euros

23 December 2020 – The Porto City Hall is looking to acquire 17 buildings located at the former Parque de Recolha de Viaturas de S. Roque, belonging to the Sociedade de Transportes Coletivos do Porto (STCP). The City Council considers the land located on Rua da Fábrica a strategic asset for the city’s eastern area. The buildings have a total area of 45,535 m2, for which the municipality intends to pay more than six million euros.

According to a document reviewed by the Lusa news agency, “the eastern area of Porto, where [these buildings] are located, is a priority territory in terms of the city’s territorial and social cohesion, which is why the municipality has been pursuing a strategy to promote urban regeneration, particularly through projects such as the Municipal Slaughterhouse and the construction of the Intermodal Terminal of Campanhã, among others.” The councilman in charge of Urbanism, Public Spaces and Heritage, Pedro Baganha, signed the document.

Original Story: Idealista – Lusa

Translation: Richard Turner