Month: March 2021

Discovery Fund on Sale for 400 Million Euros

31 March 2021 

Portugal’s banks have put their stakes in the Discovery Portugal Real Estate Fund tourism fund, valued at over US$400 million, up for sale.

According to newspaper ECO, BCP, Novo Banco, Caixa Geral de Depósitos and Oitante (formerly Banif) are selling their stakes in the Discovery tourism promotion fund, managed by Explorer and which operates over 40 assets in Portugal, including the Six Senses Douro Valley and Eden Resort in the Algarve. The fund has a net asset value of 850 million, and the units are valued at more than 400 million euros by the banks themselves.

The process, which is being led by Holihan Lokey, BCP, Novo Banco, Caixa Geral de Depósitos and vehicle Oitante are selling their stakes in the Explorer fund, and the management company will continue to manage the assets after the transaction.

In parallel, the financial institutions are in the process of selling the ECS restructuring funds in a deal that is at a more advanced stage and may close for a value of around 1 billion euros. However, there are substantial differences between the two transactions on the market at the moment, apart from the funds’ value. In the case of ECS, the sale involves the restructuring funds and the management company itself, founded by Fernando Esmeraldo and António de Sousa.

The newspaper Eco revealed that the circumstances of this deal change the investor profile in relation of ECS’ sale. Whoever buys the units will have to assume a more passive management of the fund, as asset management will remain in the hands of Explorer Investments. At the same time, returns are expected to be lower than those that ECS buyers can achieve. According to the paper, several international funds have been invited to look at Discovery’s portfolio, with non-binding bids expected sometime in the second half of April. Everything indicates that the management contract with Explorer will remain with the future owner of the fund.

BCP had its units in the Discovery Portugal Real Estate Fund valued at around €153.9 million in 2019. The bank has since revised the value of its exposures downwards due to the pandemic. Novo Banco valued its exposure to the fund at €133.8 million in June last year, after a write-down in 2019. Caixa assigned a value of nearly 80 million euros to the fund’s investment units. Oitante valued its exposure to the fund at around €56 million. In total, the four institutions value the Discovery fund at approximately €420 million, and it remains to be seen what adjustments were made last year due to the impact of the pandemic on asset values.

The Discovery fund was set up in 2012, with a maturity of 15 years, ending in 2027. According to an IoT description included in the 2019 accounts, the Discovery Portugal Real Estate Fund is a fund specialising in investing in tourism-real estate projects located in Portugal. The portfolio includes several renowned resorts, namely Six Senses Douro Valley, Eden Resort, Dolce Campo Real and Ramada Lisbon Hotel.

Original Story: Economia Online – Alberto Teixeira & Rita Neto

Translation: Richard D K Turner

Rental Contracts Increase by 19.4% in the Last Quarter of 2020

31 March 2021 – Ana Custódio

The number of new rental contracts increased by 19.4% quarter-on-quarter, while rental prices also rose, albeit at a slower pace.

According to a study, Housing Rents Statistics, published by the National Statistics Institute (INE), the average value of new rental contracts rose by 3.8% in the 4th quarter of 2020, down from 5.2% in the previous three months. However, the increase in the number of new rental contracts (+19.4%) surpassed the figure in the third quarter of 2020 (+10.7%).

Average rents fell in 15 of the 24 municipalities with over 100,000 inhabitants. The cities of Lisbon (-9.1%), Oeiras (-8.1%), Porto (-7.7%), Cascais (-3.7%) and Amadora (-2.7%) stood out, with a higher number of new rental contracts, while average rents fell.

There was also a drop in the y-o-y change in median rents in 18 of the 24 municipalities with more than 100,000 inhabitants in the fourth quarter compared to the third. The reductions were more severe than the national average (-1.4%) in 14 municipalities, with Santa Maria da Feira (-14.2%), Gondomar (-12.8%) and Coimbra (-11.3%) standing out, as well as Sintra (-7.2%) and Porto (-6.0%).

The average rent for the 22,029 new residential rental contracts in Portugal reached €5.77/m2 in the last three months of 2020. This figure represents a y-o-y increase of more than 3.8%, below the previous rise in the third quarter (5.2%).

The INE added that the number of new rental contracts in the country increased by 19.4% y-o-y in the fourth quarter of 2020 compared to the same period during the previous year (+10.7%). The average value of rents decreased y-o-y in the fourth quarter of 2020, with reductions ranging from (-4.7%) in Coimbra to (-0.4%) in Aveiro. The sub-regions with median rents above the national level were the Lisbon Metropolitan Area, the Algarve, the Porto Metropolitan Area and the Autonomous Region of Madeira.  The Autonomous Region of Madeira registered a year-on-year decrease in rental values (-1.1%), while the Upper Alentejo region posted the greatest increase in median rents (+28.5%).

It is also worth noting that the municipality of Lisbon reported the highest number of rental contracts in the country, A total of 7,968 new agreements were signed in the last 12 months, an increase of 18.6% y-o-y. Porto (3,700), Sintra (2,822) and Vila Nova de Gaia (2,619) were also noteworthy.

Translation: Richard D K Turner

Housing Rental Prices in Lisbon Fell by 8.8% Last Year

[vc_row][vc_column][vc_column_text]

 

[/vc_column_text][vc_column_text]According to data from the big data real estate platform Brainsre, average residential rental prices in Lisbon stood at 14.4 euros per square meter per month.[/vc_column_text][vc_raw_html]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[/vc_raw_html][vc_column_text]According to data from the big data real estate platform Brainsre, average residential rental prices in Lisbon stood at 14.4 euros per square meter per month. In comparison, the total average cost reached 1,368 euros per month. Those figures are above the average for Portugal, where average residential rental costs are 10.9 euros per square meter, while total monthly costs amounted to 1,153 euros per month.

However, the data points to the pandemic’s impact in the municipality, as prices suffered a quarterly drop of 1.3% and a year-on-year drop of 8.8%.

[/vc_column_text][vc_raw_html]JTNDaWZyYW1lJTIwc3JjJTNEJTI3aHR0cHMlM0ElMkYlMkZmbG8udXJpLnNoJTJGdmlzdWFsaXNhdGlvbiUyRjU1Nzk4OTklMkZlbWJlZCUyNyUyMHRpdGxlJTNEJTI3SW50ZXJhY3RpdmUlMjBvciUyMHZpc3VhbCUyMGNvbnRlbnQlMjclMjBmcmFtZWJvcmRlciUzRCUyNzAlMjclMjBzY3JvbGxpbmclM0QlMjdubyUyNyUyMHN0eWxlJTNEJTI3d2lkdGglM0ExMDAlMjUlM0JoZWlnaHQlM0E2MDBweCUzQiUyNyUyMHNhbmRib3glM0QlMjdhbGxvdy1zYW1lLW9yaWdpbiUyMGFsbG93LWZvcm1zJTIwYWxsb3ctc2NyaXB0cyUyMGFsbG93LWRvd25sb2FkcyUyMGFsbG93LXBvcHVwcyUyMGFsbG93LXBvcHVwcy10by1lc2NhcGUtc2FuZGJveCUyMGFsbG93LXRvcC1uYXZpZ2F0aW9uLWJ5LXVzZXItYWN0aXZhdGlvbiUyNyUzRSUzQyUyRmlmcmFtZSUzRSUzQ2RpdiUyMHN0eWxlJTNEJTI3d2lkdGglM0ExMDAlMjUlMjElM0JtYXJnaW4tdG9wJTNBNHB4JTIxaW1wb3J0YW50JTNCdGV4dC1hbGlnbiUzQXJpZ2h0JTIxaW1wb3J0YW50JTNCJTI3JTNFJTNDYSUyMGNsYXNzJTNEJTI3ZmxvdXJpc2gtY3JlZGl0JTI3JTIwaHJlZiUzRCUyN2h0dHBzJTNBJTJGJTJGcHVibGljLmZsb3VyaXNoLnN0dWRpbyUyRnZpc3VhbGlzYXRpb24lMkY1NTc5ODk5JTJGJTNGdXRtX3NvdXJjZSUzRGVtYmVkJTI2dXRtX2NhbXBhaWduJTNEdmlzdWFsaXNhdGlvbiUyRjU1Nzk4OTklMjclMjB0YXJnZXQlM0QlMjdfdG9wJTI3JTIwc3R5bGUlM0QlMjd0ZXh0LWRlY29yYXRpb24lM0Fub25lJTIxaW1wb3J0YW50JTI3JTNFJTNDaW1nJTIwYWx0JTNEJTI3TWFkZSUyMHdpdGglMjBGbG91cmlzaCUyNyUyMHNyYyUzRCUyN2h0dHBzJTNBJTJGJTJGcHVibGljLmZsb3VyaXNoLnN0dWRpbyUyRnJlc291cmNlcyUyRm1hZGVfd2l0aF9mbG91cmlzaC5zdmclMjclMjBzdHlsZSUzRCUyN3dpZHRoJTNBMTA1cHglMjFpbXBvcnRhbnQlM0JoZWlnaHQlM0ExNnB4JTIxaW1wb3J0YW50JTNCYm9yZGVyJTNBbm9uZSUyMWltcG9ydGFudCUzQm1hcmdpbiUzQTAlMjFpbXBvcnRhbnQlM0IlMjclM0UlMjAlM0MlMkZhJTNFJTNDJTJGZGl2JTNF[/vc_raw_html][/vc_column][/vc_row][vc_row][vc_column][vc_column_text]Of the 24 parishes that make up Lisbon, the parish of Santo António recorded the highest average price in the city during the last quarter of 2020, reaching 17.7 euros per square metre per month, almost double the national average.

The parishes of Santa Maria Maior and Misericórdia followed, with an average of 16.4 and 16.3 euros per square meter per month, respectively.[/vc_column_text][vc_column_text]

[/vc_column_text][/vc_column][/vc_row][vc_row][vc_column][vc_raw_html]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[/vc_raw_html][/vc_column][/vc_row]

Mortgage Issuance Fell by 0.9% in January

29 March 2021 – Ana Custódio

The volume of new residential mortgages issued reached 968 million euros in January.

The figure is equivalent to a slight year-on-year decline of 0.9% in the total amount of mortgage lending. Simultaneously, the average value of bank appraisals of properties conducted within the mortgage application process reached a new series-high of 1,170€/m2 in the month, an increase of 6.1% y-o-y.

The data was published on Friday by the Association of Construction and Public Works Industries (AICCOPN) within its report, the Statistical Housing Summary. The issuance of residential building permits also fell, posting a drop of 10.9% for construction and rehabilitation permits and a decrease of 20.6% in the number of newly licensed dwellings for construction. Despite the decline, the three-month rolling average reported an increase of 0.1% in the total number of licences and 6.3% in the number of dwellings.

AICCOPN’s Housing Statistics Summary also reports the news that, after 27 months of consecutive increases, cement consumption in Portugal fell by 2.8% y-o-y.

Within Portugal, the region of the Alentejo stood out, where the number of newly licensed dwellings totalled 899 in the twelve months ending in January 2021, a decrease of 7.8% compared to the 975 homes licensed in the previous twelve months. Of these, 54.3% were three-bedroom units, and 23.6% had four or more bedrooms. Residential bank appraisals in the area also fell by 0.7% y-o-y in January to €883/m2.

Translation: Richard Turner

B&B Sells Its Last Hotel in Lisbon to MNK Partners for 14 Million Euros

29 March 2021 – Ana Custódio

The B&B Hotels Group has finalised the sale and subsequent guaranteed a long-term lease of the B&B Hotel Lisboa Aeroporto to MNK Partners for €14 million.

The B&B Hotel Lisboa Aeroporto was financed by B&B Hotels and built by the Casais Group

to sell and rent it simultaneously to a real estate fund through a long-term guaranteed lease.

With the sale of the B&B Hotel Lisboa Aeroporto, the group has now unloaded 100% of its real estate assets in Portugal, consolidating its ‘asset light’ business model on the Iberian Peninsula, which the company considers “fundamental to maintaining its strong growth rates and consolidating its position as a tenant for the hotel assets of family offices and all types of real estate funds,” the company stated.

B&B Hotels already has 37 hotels operating in Spain and five in Portugal, all of them on long-term leases. This way, the hotel group can guarantee the development of new projects in close collaboration with funds specialised in real estate investments.

According to Lucía Méndez-Bonito, CEO of the company in Spain and Portugal: “our strategy for 2021 is to continue to expand our network of hotels under long-term guaranteed lease and, therefore, to expand our innovative business model.” “We currently have a large number of projects underway, and we continue to look for opportunities to continue our sustained growth in Portugal, a key market for our expansion, with the aim of continuing to be a leader in budget hotels,” Ms Méndez-Bonito added.

Abiud de Santiago, the CFO of B&B Hotels in Spain and Portugal, stated that “the success of the B&B Hotel Lisboa Aeroporto’s Sale & Leaseback operation gives the group the necessary financial muscle to carry out its ambitious development plan, as well as consolidating [our] asset-light operational model.”

Translation: Richard Turner

Forty-Two New Hotels Under Construction in Portugal

29 March 2021 – Ana Custódio

Despite the pandemic, 42 new hotels, with a total of 7,079 rooms, are currently under construction in Portugal.

The figures were published as part of the “TopHotelProjects” construction database, which shows the state of hotel development in Portugal.

According to the platform, sixteen new hotels will open in 2021, adding 2,120 rooms to the total supply, of which five are already in the pre-opening phase. In 2022, 11 more hotels with 1,980 rooms are expected, followed by seven more projects in 2023 and eight more in 2024.

Of the 42 new hotels, just under 75% will be four-star hotels, with the remainder set to be five-star units. The study also notes that Lisbon has a particularly active pipeline.

Fourteen new hotels with 2,490 rooms are expected to open in the Portuguese capital in the next few years, making it the fastest-growing city in the country in the sector. Eight new units with 1,801 rooms will be inaugurated in Porto, while Cascais has two projects, with a total of 173 rooms underway.

TopHotelProjects added that Meliá Hotels & Resorts is the most active player, building four hotels and 782 rooms. Turim Hotels is in second place, with three hotels and 339 rooms, while Radisson Red has two projects, with a total of 568 rooms.

The construction database also highlights the inauguration of the two highly-anticipated hotels. The first, located in Cascais’ historical centre, will be the Legacy Hotel Cascais, Curio Collection by Hilton, with 58 rooms, will open in the third quarter of 2023. Also of note is the 194-room Hilton Porto Gaia, which should be inaugurated in the third quarter of this year, and which boasts a panoramic view of Porto’s historic centre and the Douro River. The 77-room Sé Catedral Hotel Pis also scheduled to open in the third quarter of 2021.

Translation: Richard Turner

Average Bank Valuations Increase to 1,174 Euros per Square Metre

26 March 2021

The average bank valuation of homes as part of a mortgage application process reached a new high of 1,174 euros in February 2021.

The new average is equal to an increase of four euros compared to January, and a year-on-year rise of 5.7% (vs 6.1% in January). The number of bank valuations reached approximately 23,000 thousand, a drop of 4.1% year-on-year.

According to the data published by Portugal’s National Institute of Statistics (INE), the sharpest fall in prices was reported in the Autonomous Region of the Azores (-0.5%). In comparison, the largest m-o-m increase was seen in the Autonomous Region of Madeira (2.1%). Year-on-year, average valuations rose by 5.7%, with the highest growth in the North (6.4%) and the lowest in the Alentejo (2.3%).

The INE’s analysis indicated that the average value of bank valuations of houses stood at 975 euros/m2 in February, an increase of 5.1% y-o-y. The highest values were seen in the Algarve (1,561 euros/m2) and the Metropolitan Lisbon (1,545 euros/m2), while the Centre reported the lowest appraisals (812 euros/m2). The Autonomous Region of Madeira showed the highest growth (10.6%), while the lowest growth came in the Algarve (1.1%).  The Autonomous Region of Madeira showed the largest increase compared with the previous month (3.7%), with the sharpest fall in the Autonomous Region of the Azores (-1.5%). Compared to January, appraisal values for two, three and four-bedroom houses, which accounted for 88.8% of all valuations, were €941/m2 (down 2 euros), €953/m2 (up 3 euros) and €1,046/m2 (up 22 euros).

The National Statistics Institute also reported that the average value of flats hit 1,291 euros per square metre, up 6.9% y-o-y. The highest value was seen in Metropolitan Lisbon (1,562 euros/m2) and the lowest in the Alentejo (865 euros/m2). The North reported the highest growth (8.3%), compared to the weakest in the Alentejo (0.7%). Month-on-month, bank valuations rose by 0.5%, with the Metropolitan Lisbon reported the most significant rise (1.9%), compared to a fall of 0.9% in the Algarve. The average worth of two-bedroom flats rose by 2 euros, to 1,299 euros/m2 , while three-bedroom flats also increased by 2 euros, to 1,164 euros/m2. These types of apartments accounted for 80.2% of the valuations of flats in February.

According to median bank valuations by region for the month, Metropolitan Lisbon, the Algarve and the Autonomous Region of Madeira posted above-median appraisals (33%, 30% and 2%, respectively). The regions of Beira Baixa, Beiras, and Serra da Estrela had the lowest value in relation to the country’s median (-42%).

INE also reported that 23,087 bank valuations were undertaken in February, 4.1% less than in the same period of the previous year. Of these, 14,602 were flats, and 8,485 were houses. Month-on-month, the total number fell by 1,770 (-7.1%).

Translation: Richard Turner

Suspended Loans Totalled €45.7 Billion in January

26 March 2021

The Bank of Portugal has released statistics on loans that have been subject to moratoria during the period from March 2020 to January 2021.

Of the companies that requested a suspension of loan payments, those in the accommodation and restaurant sectors were the most prominent, with 57% of their total outstanding loans covered by the measure. In those most vulnerable sectors, payments on 8.4 billion euros worth of loans were suspended, 34.4% of the total suspended amount non-financial companies.

According to statistics published by the Bank of Portugal, 16.1% of loans to individuals were in non-payment, totalling 20 billion euros, 86% of which were mortgage loans. According to an analysis, almost 9% of individuals had at least one contract covered by the moratorium. The volume of housing loans under private moratorium reached 3.7 billion euros.

In the month following the measure’s introduction, the most significant increase in suspended loans came in April 2020. By September, the moratoria covered a high of €48.1 billion in loans. Since then, the volume has trended downwards.

By the end of January of this year, 45.7 billion euros in loans were still suspended, down by 0.5 billion since the month before. It was a generalised reduction, except for mortgage loans to households and loans to non-financial companies in the accommodation and restaurant sector, which saw increases of 71 and 38 million euros, respectively. During January, payments were suspended on another 500 million euros on loans, while 0.9 billion euros ceased to be covered.

The moratoria originated due to the pandemic as a protective measure for Portuguese households and companies. The Portuguese government aimed to prevent a cash crunch and ensure continued liquidity in the economy.

Translation: Richard Turner

Housing Prices Rose By 8.4% in 2020

25 March 2021

In 2020, the index that tracks housing prices rose by 8.4%, compared to an increase of 9.6% in 2019.

In the fourth quarter of 2020, the year-on-year change rate of the Housing Price Index (HPI) stood at 8.6%, up 1.5% from the previous quarter. The prices of existing homes increased at a slower rate than new dwellings, at 8.5% and 9.0%, respectively. In 2020, 171,800 houses were bought and sold, 5.3% less than in 2019, according to data published by Portugal’s National Institute of Statistics (INE).

Total sales of residences reached 26.2 billion euros, increasing by 2.4% compared to the previous year. The value of new housing increased by 9.3% to 5.4 billion euros, and that of existing housing increased by 0.7% to 20.8 billion euros. Between October and December 2020, 49,734 houses were bought and sold, resulting in a year-on-year growth rate of 1.0% and an increase of 10.2% over the previous quarter. In the last quarter of the year, total sales amounted to 7.5 billion euros, up 8.7% compared to the same period of 2019.

According to the INE, the average price of the homes sold last year rose despite the restrictions imposed due to the COVID-19 pandemic. The average annual rate of change index reached 8.4%, reflecting a moderation compared to the price growth observed in 2019 (9.6%). The report added that “The price growth trajectory was evident in both existing housing (8.7%) and new housing (7.4%). As in recent years, the difference in the pace of growth of existing and new housing prices has narrowed, falling from 2.5 p.p. in 2019 to 1.3 p.p. in 2020.”

In 2020, 171,800 dwellings were bought and sold, down 5.3% y-o-y. For the first time since 2012, the volume of sales fell, reflecting the pandemic’s impact. In January and February, before Covid-19 really began to hit the European economy, the number of transactions posted year-on-year increases of 9.4% and 3.5%, respectively. The period from March to October saw a series of decreases, particularly in the second quarter (-21.6%) of the year, when the lockdowns began. Year-on-year increases followed in November (4.0%) and December (12.6%). Of the transactions carried out in 2020, 15.5% were for new homes, 0.8% more than in the previous year.

Original Story: Jornal de Notícias

Translation: Richard Turner

Portugal Voted European Best Destination 2021

25 March 2021

Portugal has been named the best country in Europe to visit in 2021 by users of the European Best Destinations website.

According to the Jornal de Notícias, Turismo de Portugal, in a statement released on Wednesday, believes that the award “consolidates the country’s position as a destination of excellence, remaining at the top of the preferences of tourists.”

According to the European Best Destinations’ website, users highlighted Braga, Porto, the beaches of Cascais and the Algarve, Madeira and the Azores as unmissable places to visit. After Braga was elected The Best European Destination 2021, now it is Portugal’s turn. According to voting on the site, which has over six million unique visitors per year, Portugal stands out for its natural beauty, gastronomy, beaches and history rich in tradition.

Based on traffic data and searches in recent months, the ranking of the best countries to visit in 2021 by European Best Destinations includes France in second place, followed by Greece in third place, Italy in fourth place and Croatia in fifth place.

In the statement, the president of Turismo de Portugal, Luís Araújo, stressed that “more than a destination, Portugal is an experience that impacts the tourist. Because our country has everything for everyone. From north to south, interior or coast and islands, those who visit us want to return. And this ranking shows us that, despite everything that has happened in recent months, tourists have not forgotten Portugal and are eager to return. And we will be here, as always, to welcome them well and safely.”

Original Story: Jornal de Notícias

Translation: Richard Turner