Month: April 2021

BorgWarner Invests 25 Million Euros in New Factory in Viana Do Castelo

30 April 2021

BorgWarner will invest 25 million euros in a new facility located in Viana do Castelo, creating 300 new jobs.

The new factory, which will go up in the Lanheses Business Park, will cover 17,000 square metres and is due to start production in 2023. After the group selected Portugal as a future centre for its European expansion, this will be the US multinational’s third investment in the municipality.

BorgWarner currently has a turnover of 170 million euros in Viana do Castelo, and it is expected that this figure will double with the new investment. The group is a leader in propulsion systems for combustion, hybrid and electric vehicles. Following the trend towards increased interest in electric cars, the company intends to provide innovative and sustainable mobility solutions for the automotive market.

Ricardo Moreira of BorgWarner Portugal considers that this is an investment for the future since the firm believes that around 45% of its turnover will be in electric vehicles by 2030. “We will already see the start of construction of this unit in the coming months,” he said, explaining that the new factory will be the third in Europe in this business sector and will produce electric motors for the group’s European customers.

BorgWarner began operations in Viana do Castelo in 2014 in a 25-million-euro investment that, at the time, estimated it would create 500 jobs but currently employs around 950 workers. In November 2020, the company signed an investment contract to move ahead with a €7-million expansion of its facilities in the Parque Empresarial de Lanheses, which will create 38 more jobs.

The American multinational has 50,000 employees in 96 locations and 24 countries. In 2020, the group reported sales of US$10.2 billion.

Translation: Richard D. K. Turner

Deposits in Portugal Reach All-Time High

29 April 2021

Saving in Portugal hit a record high of 164.6 billion euros in March.

Deposits reached a new all-time high of 164.6 billion euros, compared to the previous record of 163.8 billion euros. According to an article in Eco, data released by the Bank of Portugal on Thursday indicates that household bank deposits reached a new high, as Portuguese households increased their savings due to the Covid-19 restrictions.

The figure represents an increase of 8.2% compared to March of last year. For February, the Bank of Portugal reported that deposits rose by 794.3 million euros, compared to an increase of 956.1 million euros in the previous month.

Loans to families also rose again, while that was not the case for businesses. According to the Bank of Portugal, “In March 2021, loans granted by banks to non-financial corporations rose by 10.0% y-o-y, 1.2% less than in the previous month. Loans to large companies stood out, falling by 6.9% y-o-y to an increase of just 1.3%.”

Loans to individuals reached the highest point since May 2015, rising by €398.4 million compared to the previous month. The total amount of loans granted to households increased in March to 121.4 billion euros.

The Bank of Portugal also reported that the annual rate of change in home loans was 3.0%, up 0.3 percentage points over February. In March, the amount granted for this purpose reached 95.935 billion euros. The amount earmarked for other purposes also increased that month, to 6.587 billion euros.

Original Story: Eco Sapo – Ema Gil Pires

Translation: Richard D K Turner

Miraflores Park: SOLYD Property Developers’ New Project

29 April 2021

The real estate developer’s most recent launch offers life in harmony with Monsanto Park and the Tagus River. The new residential project is going up in Miraflores, one of the most familiar and cosmopolitan neighbourhoods of Greater Lisbon, offering 34 spacious and modern flats.

The latest development, “Miraflores Park,” is under construction by SOLYD Property Developers. The new building is located in the centre of Miraflores, surrounded by the green mantle of the Monsanto Forest Park and the incomparable views over the Tagus River. The new development reinforces SOLYD Property Developers’ supply of real estate in Greater Lisbon, allowing for a more tranquil life, close to everything, in an area that is becoming one of the most attractive locations for Portuguese families today.

Miraflores Park includes units ranging from one to four bedrooms, where every flat has been designed with the utmost rigour and detail, with generous spaces, full of natural light and with unobstructed views, in perfect harmony with nature. Surface areas range from 50 to 285 m2, with prices starting at €213,000 for a one-bedroom apartment.

Designed by the architect João Pedras from the Metro Urbe studio, all the spaces are comfortable, functional and sustainable. Inside, the finishings stand out for their excellence, which is evident from the flooring and wall coverings, the thermal and acoustic insulation, and the neutral and light tones that give way to a minimalist style.

The new development will consist of 10 floors, and its façade will be updated with a contemporary and elegant style. On the top floor, there will be a single, 4-bedroom apartment with an area of 285 m2 and a large 171 m2 terrace, where residents will enjoy incomparable views of the Tagus River and the tranquillity of the large Monsanto Forest Park. There will also be a rooftop lounge, where all residents can relax with family and friends or exercise.

Translation: Richard D K Turner

Residential Bank Valuations Up 5.7% in the First Two Months of the Year

29 April 2021 – Ana Custódio

The new mortgages issued by financial institutions in Portugal totalled 1.967 billion euros in the first two months of the year.

According to AICCOPN’s (Association of Civil Construction and Public Works Industries) Statistical Synthesis of Housing, the figure is equivalent to a growth of 3.7% y-o-y. Bank valuations conducted during the mortgage application process rose by 5.7% to a new high of 1,174 euros/m2.

New licenses for residential construction or refurbishment, issued by Portugal’s Municipal Councils, fell by 6.1% year-on-year during the first two months of 2021. New builds fell by 2.8%, and renovations dropped by 17.9%.

The analysis also revealed that new licences issued for constructing dwellings in new buildings fell by 20.1% y-o-y, to a total of 3,733.

At the same time, cement consumption in the national market remained practically unchanged compared to the same period last year, falling by 0.2% in the first two months of the year.

AICCOPN highlighted the North Region, where the number of licensed dwellings in new builds totalled 10,962 in the twelve months ending February 2021, a 6.7% increase compared to the 10,272 dwellings approved in the previous twelve months. Of these, 53.9% were three-bedroom homes, and 22.1% were two-bedroom dwellings. Bank valuations in the region rose by 6.4% in February to 1,024 euros per square metre.

Translation: Richard D. K. Turner

Housing Sales in Portugal up 57% Between Lockdowns

26 April 2021 – Ana Custódio

The average sales price of residential property in Portugal in the first quarter of 2021 reached €1,715/m2.

Approximately 49,600 homes were sold in mainland Portugal in the first three months of 2021, according to projections made by Confidencial Imobiliário, based on information reported by real estate agents to the SIR (Sistema de Informação Residencial).

In this period, which coincides with the second general lockdown, the volume of transactions was 57% above the approximately 31,600 homes sold during the first confinement in the second quarter of 2020. Volume was also up compared to the last quarter of 2020, increasing by 5% compared to the 47,200 homes sold during that period.

The data show across the board increases in every region of Portugal, with q-o-q growth of 6% in the Metropolitan Areas of Lisbon and Porto and the Algarve. Compared to the previous confinement period, sales increased by 47% in the Lisbon Metropolitan Area by 46% in the Porto Metropolitan Area and 76% in the Algarve. In the first quarter of 2021, an estimated 17,150 homes will have been sold in the Lisbon Metropolitan Area, versus 8,120 in Porto and 3,900 in the Algarve.

In the first quarter of 2021, the average sales price of houses in Portugal rose to €1,715/m2, reaching €2,232/m2 in the Lisbon Metropolitan Area, €1,601/m2 in the Porto Metropolitan Area and €1,836/m2 in the Algarve. In the Portuguese capital, sales reached an average price of €3,656/m2 and €2,318/m2 in Porto.

Translation: Richard D. K. Turner

Urban Rehabilitation Indexes Up in March

27 April 2021 – Ana Custódio

The Urban Rehabilitation Survey is indicating a comeback at the end of the first quarter.

According to AICCOPN’s (Associação dos Industriais da Construção Civil e Obras Públicas) survey of Urban Rehabilitation, executives in Portugal are gaining confidence regarding the perspectives for the market. The index, which measures executives’ opinions concerning the volume of their Order Books shows, in March, an increase of 1% y-o-y, ending a series of declines in the indicator.

As for the index measuring changes in the Level of Activity, the survey shows a reduction of 1.8% y-o-y, still a significant improvement over recent months.

AICCOPN also noted that the number of months of contracted production (the time that current orders guarantee work), which has been recovering at a consistent pace since December, grew to 9.2 months, an increase of 8.2% month-on-month.

Translation: Richard D. K. Turner

Residential Bank Valuations Rose to €1,185 in March

26 April 2021

Average residential bank valuations in Portugal rose to 1,185 euros in March, up by eleven euros than in the previous month.

According to a report by the National Statistics Insitute, the increase reached 6.8% (vs 5.7% in February) in year-on-year terms. The number of bank valuations performed also increased to around 25,000, 2.7% more than the same period of the previous year.

According to the country’s statistics office, in March 2021, average bank appraisals for mortgage applications for acquiring homes reached 1,185 euros per square metre, an increase of 0.9% compared to February (1,174 euros/m2). The largest increase compared to the previous month came in the Azores (3.5%), and the smallest was in the Algarve (0.3%). Average valuations grew by 6.8% y-o-y, with the highest in the North (7.7%) and the lowest in the Algarve (2.9%).

The average valuation of flats stood at €1,300/m2, up 7.5% y-o-y. The highest value came in the Lisbon Metropolitan area (€1,569/m2) and the lowest in the Alentejo (€864/m2). The most significant growth was reported in the North (8.7%) and the weakest in the Alentejo (0.6%). Month-on-month, valuations rose by 0.7%, with the Azores showing the highest increase (2.5%) and the Algarve the sharpest fall (-0.2%). The average value of two-bedroom flats rose by 11 euros to 1310 euros/m2, while 3-bedroom apartments rose by 5 euros to €1,169/m2. The two types account for 80.9% of the assessments in March.

Houses had an average value of 991 euros/m2 in March, an increase of 7.4% y-o-y. The highest prices were seen in the Algarve (1,620 euros/m2) and the Lisbon Metropolitan Area (1,550 euros/m2), with the Centre reporting the lowest (818 euros/m2). The Alentejo showed the highest growth (10.0%), while the lowest was recorded in the Algarve (3.6%). The Algarve showed the largest month-on-month increase (3.8%), with the only decrease coming in the Autonomous Region of Madeira (-0.2%). Two, three, and four-bedroom flats accounted for 88.9% of the valuations, reaching €959/m2 (+€18), €966/m2 (+€13) and €1,052/m2 (+€6).

According to the Average Bank Valuation Index, calculated by the National Statistics Institute, the Lisbon Metropolitan Area, the Algarve, and the Autonomous Region of Madeira presented average valuations above the average for the country (32%, 29% and 2%, respectively). Beiras and Serra da Estrela reported the lowest values vis-a-vis the rest of the country (-43%).

A total of 25,420 bank evaluations were considered to calculate the average value of bank evaluation in March. Of those, 15,943 were of flats and 9,477 were of houses. In comparison to February, there were 2,333 more bank appraisals, corresponding to an increase of 10.1%.

Translation: Richard D. K. Turner

€3.5-Billion Investment to Create Huge Data Centre in Sines

26 April 2021

Start Campus, a company owned by the North American Davidson Kempner Capital Management LP (Davidson Kempner) and the British Pioneer Point Partners, will build the data centre.

With construction expected to begin in 2022, involving 900 people in the first phase and up to 2,700 in total, Sines 4.0 is due to open the first of the five planned buildings by the end of 2023, reports Jornal de Negócios.

In a statement sent to Lusa, the Anglo-American company noted  “at least five major advantages” that make Sines a “unique location with the potential to become one of Europe’s leading data centre campuses”: energy, scale, connectivity, cooling and marine topography.

The group highlighted the availability of low-cost energy from renewable sources through very good connectivity with the national grid and easy access to competitive green energy, including solar, wind and (in the future) hydrogen.

Original Story: Jornal de Negócios

Translation: Richard D. K. Turner

Millennium BCP to Sell 111 Hectares of Land in Amadora

23 April 2021

Cushman & Wakefield has been hired by Millennium bcp to sell an enormous plot of developable land in Amadora.

The bank gave an exclusive mandate to the consultancy to sell a substantial set of plots of land in the centre of Amadora. The land, totalling 111 hectares, 38 hectares of which correspond to urban freehold and developable area, may allow, given the current local zoning laws, approximately 250,000m² of above-ground construction area.

The asset is located close to the Amadora city centre and follows the parish of Mina from the railway line to the neighbourhood of Moinhos da Funcheira. Millennium bcp is working with the municipality of Amadora to define sub-units with distinct characteristics for the development of mainly medium and high-density residential projects in what will be the most important pocket of residential development for the middle class in Greater Lisbon in the coming years. The projects will also have to include retail and services spaces as well as green and leisure spaces.

According to a statement by Cushman & Wakefield, “The property possesses an unmatched development potential, which could become the future location of an exemplary and impactful urban project in a central and strategic area with excellent rail and road access to the capital centre and the rest of Greater Lisbon. Given the new market cycle, with more people working from home and with urban planners and developers investing more in greener, cleaner, more technological and better-connected projects, the land has the best conditions for the development of the much-discussed concept of the 15-minute city, whose purpose is to improve the quality of life of citizens by transforming cities into places where everything can be reached in, at most, 15 minutes, either on foot, by bicycle or public transport.”

Translation: Richard D. K. Turner

Three and Six-Month Euribor Fall as 12-Month Holds Steady

23 April 2021

The 3- and six-month Euribor rates fell yesterday, while the 12-month rate held steady compared to the day before.

The six-month Euribor rate, the most used in Portugal for mortgages, retreated yesterday to -0.515%, down by 0.002 points. The rate reached a low point of -0.534% on January 28.

According to the online newspaper Notícias ao Minuto and the Lusa news agency, the three-month Euribor rate fell on Thursday to -0.539%, down by 0.004 points.  The rate reached a low point of -0.556% on January 6.

The 12-month Euribor held steady yesterday at -0.476%. The rate reached a nadir of -0.515% on February 2.

The evolution of the Euribor interest rates is closely linked to the changes in the key interest rates set by the European Central Bank (ECB).

The three, six and 12-month Euribor rates fell below zero in 2015 on April 21, November 6 and February 5, respectively.

Euribor rates are determined by the average of the rates at which a group of 57 banks in the eurozone are willing to lend money to each other on the interbank market.

Original Story: Notícias ao Minuto

Translation: Richard D. K. Turner