Month: September 2022

#Brainsflash

September, 26, 2022

With the end of the month approaching, this past week, in addition to some relevant announcements and investments, there was the release of various statistical data, namely in the segments of housing, offices, real estate investment funds and the mergers and acquisitions market volume.

There were news related to asset management and the housing segment and the health area have been highlighted as well.

At the beginning of the week, there was the announcement that Sonae Sierra is going to manage CTT’s real estate assets. The company was chosen to manage 400 retail and logistics properties, valued at around 110 million euros. The official announcement should be made at the beginning of November; however, it is known that the portfolio consists of stores, normally located in the centre of the localities and by CTT’s warehouses and logistics/distribution centres.

With the ending of the week, it was turned public that a CUF clinic will be born in “Terras da Comporta”. VanguardProperties and CUF have teamed up on the project of a proximity clinic in Comporta. The new health unit will have an investment of two million euros and the building will be built in the “Dunas” plot, in the municipality of Grândola, parish of Carvalhal. The clinic which will be strategically located in a space of the enterprise has its opening scheduled between the end of 2023 and the first half of 2024.

Finally, PREDIBISA presented the new development NATURA. The innovative housing project is located on the land of the emblematic Efanor factory, in Matosinhos, a place of choice for those looking to live in the urban centre. The development will be marketed exclusively by PREDIBISA and the construction will be in charge of Telhabel. The value of the investment was not revealed. The project preserves the privacy of the residents, with the tranquility of a unique landscape and pure nature, amongst trees, water mirrors and pedestrian paths, with approximately 30,000 m2 of green area.

 

#Brainsflash

September, 19, 2022

In the investment and transaction market, the beginning of the past week was marked by the annoucement from the Braga Chamber reporting the approval of the proposal to update the Local Housing Strategy (ELH) for the municipality.

This review will bring an increase in the number of covered families (+64%) and people (+84%) in need of decent housing, as well as a significant increase in the investment, amounting to around 123 million euros, when compared to the previously approved ELH. This way, ELH will now cover a universe of 1284 households (3632 people), with the proposed global investment corresponding to an average investment, per flat, of around €96,500.

The week continued with the news that the old factory “A Napolitana”, located in Alcântara, Lisbon, will give way to an international school. According to the press release sent to brainsre.news, the works should be completed in the first half of 2024. The rehabilitation project of the old factory, designed by architect Frederico Valsassina, intends to keep the four emblematic buildings of the complex, preserving the original facades as well as the construction of a new building.

The works are being monitored by Engexpor, which provides project management and construction management services to the RFR Group, a North American investment, promotion and management company for commercial and residential real estate, based in New York. Project values have not been disclosed.

On the 12th, and according to a note published on the Cushman&Wakefield website, Atenor acquired a plot of land with an area of 8.373 m2, close to the transport interface of Campo Grande, Lisbon, for the construction of a building with about 14.000 m2 of offices, 450 m2 of retail as well as parking facilities.

In this transaction, of which the amount was not disclosed, Cushman&Wakefield acted on behalf of Atenor, a Belgian real estate developer that is already developing another landmark office project in Portugal – WellBe, in Parque das Nações.

Nearing the end of the week, Cushman also announced that Arrow Global Portugal has acquired the Hotel California. The four-star hotel, with a total area of 3.900m2 and 80 rooms, is located in the centre of Albufeira and 100 meters from Praia do Pescador. Renovated in 2019, its amenities include the roof top pool and bar overlooking the historic city centre, the spa & fitness centre and the sushi restaurant. Cushman&Wakefield represented the previous owner, DetailsHotels& Resorts, in the deal.

Another of the investments announced at the end of the week was that Room007 Pink will be born, in Cais do Sodré, in Lisbon, in the block where the Jamaica and Europa nightclubs once operated. The new hostel, which will create around 25 new jobs, is scheduled to open in 2025 and will have 80 rooms spread over the six floors of the building.

Designed to welcome a millennial and generation Z audience, this new hostel is the latest investment by the Spanish chain in Portugal, which already has two units opened in Lisbon, under the Bluesock Lisboa and Room007 Select Liberdade brands, both on Avenida da Liberdade, with four new units planned in Lisbon and Porto, still under construction.

Hawk Real EstateCollective, a real estate consultancy specializing in large assets, operating mainly in the greater Lisbon, Comporta, Melides and Alcácer do Sal regions, was the intermediary in the business.

On the last day of the week, it was announced that the Lisbon City Council wants to launch a public auction for the sale of five municipal plots of land for the construction of housing in the parish of Lumiar, with a total base bid value of 20,9 million euros.

According to the website of the newspaper Expresso, the five municipal plots of land included in the proposal, namely two in Quinta dos Alcoutins (lot 26 with an area of 1.063 square meters (m2) for the base value of 515 thousand euros and lot 27 with 1.150 m2 for 560 thousand euros), two on Rua Professor Manuel Viegas, in the urbanization of Paço do Lumiar (lot B with 1.920 m2 for 6.2 million euros and lot C with 3.906 m2 for 12.2 million euros) and one in area 6 of Alta de Lisboa with 906,37 m2 for 1,44 million, “are intended for housing”.

#Brainsflash

September, 12, 2022

In the investment and transaction market, last week was marked by the announcement that the IHRU (Instituto da Habitação e da Reabilitação Urbana) will launch three more tenders for the development of the projects for the Quinta da Baldaya, Quinta das Conchinhas and Rua do Beato, all in Lisbon. Altogether, these operations represent a total of 456 homes and an investment of more than 90 million euros.

The week went on with the sale of the entire set of luxury apartments Maison Eduardo Coelho, located in Príncipe Real, in Lisbon, to an investor. The project, which resulted from the rehabilitation of a historic building from the beginning of the 19th century, has seven T1+1, T2, T3 and T3 duplex apartments, with areas from 84 to 343 square meters, and values between €910.000 and 4 million euros. Portugal Sotheby’sRealty was the broker to the deal.

On the 6th, Jornal de Negócios reported that the Groupo Mais had acquired a land in Setúbal for the construction of a new hotel, in an investment of 8,5 million euros. The new hotel will be built at numbers 2, 4 and 6 of Estrada das Machadas, where there is currently a vacant property to be demolished. The hotel, with a gross building area of 3.591,30 m2, will have 120 rooms on six storeys, a basement for parking and a technical features storey. The opening is scheduled for the summer of 2024.

Near the end of the week, Hipoges announced the sale of the “Projecto Liberty” for a value of over 10 million euros to an international developer with the aim of becoming a redevelopment project. Located in one of the most privileged areas of the city, right on Avenida da Liberdade, the building consists of 10 storeys above ground and 1 basement with a total area of about 2,500 m², divided into 10 independent units, namely 1 retail store and 9 offices, without horizontal property. According to Hipoges “it is an ideal asset for various types of buyers, from international and national funds to developers, contractors, family offices or institutional investors.”

The week ends with the news of the acquisition, by Real Vida, of the Real Business Center, in Viseu, an office, commercial and multipurpose building, in which the insurance company invested 4.5 million euros in rehabilitation, in an operation whose total cost is 7 million euros. The building officially opens on the 15th of September.

#Brainsflash

September, 05, 2022

The last few days of the week, the turning point of the holiday period with many returning to their activities, showed a more serene format with regard to investments in the real estate sector. However, there were relevant announcements over the past week, mainly in the student residences segment, marked by the planning of the return to school for many young people.

Right at the beginning of the week, Sonae Sierra announced that it had notified the Competition Authority of the acquisition of Atrium Saldanha, in Lisbon. The retailer Sonae Sierra acquired exclusive control of Imosal – Imobiliária do Saldanha, S.A., a company 100% owned by Kostas. In question is a building consisting of 59 stores and nine storeys of offices, as well as an underground car park.

Meanwhile, LIV Student opened a new student residence, and a new coliving concept was born in Porto, in an investment of 60.5 million euros. LIVStudent Campus Street offers 734 more student rooms in the area of the Polo Universitário da Asprela, in the invictus city. This is the second residence in Porto under the brand Valeo Groupe which has added 1,157 rooms to the city’s accommodation dedicated to university students, in two years. The LIV CoLife offers 71 rooms, as a way to meet the demand for flexible accommodation in the city.

The University of Algarve is also building two residences and renovating another six. The eight approved projects entail a total investment of 14.54 million euros. At stake is the approval of a funding of 13.7 million euros, under the National Plan for Housing in Higher Education (PNAES), to be applied in an ambitious plan that provides for the opening of the two new residences and the requalification/renovation of the six existing ones, in an effort that will make it possible to make 292 new beds available for students. The opening of the two new residences is planned by mid-2024.

The State of the Portuguese Real Estate Market in August

In full holiday season, the month of August, expected to be a quiet period in the real estate sector, suddenly and quickly made its ways through, with numerous transactions in the market. In almost all segments and a little from north to south, large-scale deals were perceived, with emphasis on housing, alternative assets and in the NPL’s market, were the ones that achieved the highest announcements over the course of the month.

The biggest highlight was the news that the Banks finally closed the agreement for the sale of ECS to Davidson Kempner Partners (DK Partners) for 850 million euros. This operation is already known as the real estate deal of the year, in Portugal.

Housing

At the beginning of the month, Vila Real de Santo António announced an investment of 101 million euros in housing. The Local Housing Strategy aims at benefiting households in the parish of Monte Gordo, the parish of Vila Nova de Cacela and in Vila Real de Santo António . The planned investment is intended to support 812 households.

Then, Coporgest proceeded with the conclusion of a residential project worth 27 million euros. Sottomayor Premium Apartments benefits from one of the best locations in Lisbon and is aimed at the high end. The complex consists of 43 apartments, from T1 to T3.

The month of August was still halfway through when the municipality of Matosinhos announced the investment of 85 million euros in housing, until 2026. The City Council and Matosinhos Habit are working on an investments plan in the construction and requalification of social housing, in supported rental and in the municipal program to support the rent.

Meanwhile, Mealhada has also approved the Local Housing Strategy, in an investment of 68 million euros. The focus is on intervention in various social housing neighbourhoods, the construction of housing areas and support to individuals, for the recovery of degraded houses intended for rent at controlled costs.

Offices

The month had just begun, when it became public that a Portuguese fund had acquired Uber’s headquarters in Lisbon for 18 million euros. The property, purchased by VIP (Fundo de Valores e Investimentos Prediais), was sold by Portuguese Finangeste and Patron Capital to the fund managed by Silvip. The Barbosa du Bocage building has seven storeys and a total area of 3.600 square meters.

In the meantime, the Novo Banco headquarters was sold for 112.2 million euros. Novo Banco, S.A. has informed on the signing of a Promissory Agreement to sell and buy regarding the current building, located on Avenida da Liberdade in Lisbon, in a statement sent to the Securities Market Commission (CMVM). Completion of the sale is expected to take place in the 3rd quarter of 2022.

Logistics

The logistics segment stood out with Carnes Campicarn, S.A., a national company in the beef industry, purchasing two factories in Torres Novas, in the district of Santarém, from a company of the Patris Group. With no revealed investment value, the two industrial assets have a covered area of around 11.000 m2 and are very well located in the centre of the country.

Student Residences

With the month of August starting, the University of Porto announced the investment of 18.7 million euros in student residences. The investment amount is intended for the construction of two new residences and the requalification of four existing ones. This will bring a greater offer to university students in the north of the country.

Towards the end of the month, new announcements were made in this segment, first with LIV Studenta opening a new residence for students and a new concept of coliving in an investment of 60 million euros. Porto receives the new LIV Student Campus Street residence, with 734 rooms and a new concept of coliving, LIV CoLife, with 71 rooms, is born in the city. This is the second residence in Porto under the Valeo Groupe brand.

Subsequently, the University of the Algarve announced that it will build two residences and renovate six in an investment of around 14 million euros. The two new student accommodation units will be built one on the Gambelas campus and the other on the Penha campus. The eight projects approved involve a total investment of 14.54 million euros, in an effort that will enable the provision of 292 new beds for students.

Hotels

In the middle of the month there was the announcement that the Fontecruz Lisboa Hotel had been sold for 42 million euros by the Spanish chain FontecruzHotels. The new owner of the hotel is Carlos Camurdine, one of the biggest entrepreneurs in Mozambique. Opened in 2012, the five-star hotel was the international debut of the FontecruzHotels chain and offers 72 rooms.

It was also made public that in Viana do Castelo, a hotel shut down for 16 years, will reopen after works worth 10 million euros. The Viana Sol hotel reopens in February 2023, after having been refurbished, as a themed hotel. The hotel will have its name changed into Dona Aninhas.

Land

At the beginning of the month, Corticeira Amorim announced the purchase of a land from Novo Banco, for 22.3 million euros. The 1855 hectare plot is located in Pinhal Novo, in the municipality of Palmela. The property includes a set of properties allocated to forestry which are part of the former Herdade de Rio Frio.

Alternative Assets

In the beginning of August, Sintra has announced that it will proceed with an investment of 10 million euros into a new municipal building. The new project is to be born in the former Fábrica da Messa complex. The building will be located on a plot of 1.6 hectares with a construction area of ​​approximately 5.000m2.

Meanwhile, Herdade do Vale Feitoso has been sold for 25 million euros. The Spanish company Tenigla sold the largest private property in Portugal, an estate with more than 7.300 hectares, which has now been acquired by Portuguese businessman Ricardo Machado. The new owner will spend 50 million euros on improving the property.

Also at the beginning of the month, the commercial and cultural space Lx Factory was sold to a joint venture of Grupo Arié. The asset in Lisbon was acquired, with no investment value revealed, by a joint venture between Grupo Arié, Europi Property Group and Bedrock Capital.

In the meantime, Sonae Sierra acquired Atrium Saldanha, in Lisbon, through the purchase of the company Imosal. The operation, with no revealed investment value, was notified to the Competition Authority. The building, comprising 59 stores and nine storeys of offices, also has an underground car park.

NPL

With August coming to an end, the Banks closed the agreement for the sale of ECS to Davidson Kempner Partners (DK Partners) for 850 million euros. The operation is still pending regulatory approval and should only be completed in the fourth quarter of 2022. The asset portfolio includes the sale of the FLIT and the Recuperação Turismo funds, as well as the management of the company.

Parvalorem has also resumed the sale of a property portfolio worth 250 million euros. Two years after the Ministry of Finance blocked this transaction, Parvalorem, which manages the troubled assets of the bankrupt BPN, resumed the process of selling a real estate fund, valued at just over 255 million euros.