#Brainsflash

May 22, 2022

Of particular note was Sonae Capital’s sale of Aqualuz Tróia Mar & Rio and The Editory by The Sea Tróia-Comporta.

The middle of May proved to be especially active for the real estate market in Portugal, particularly in the residential and hotel sectors. Some news of interest came to light, along with significant investments.

At the beginning of the week, Coporgest’s Chiado 12 announced that it would gain new luxury flats. Transformed into a residential building, in a total investment of 9.25 million euros, Chiado 12 is undergoing an intervention to add two new luxury flats. The development located in Largo do Chiado, in the heart of Lisbon, has been a reference in the capital for being where the famous Hermès brand shop is located. In 2014 it was acquired by Coporgest, a company specialising in the development of luxury real estate projects.

Madeira plans to invest €136 million in housing for 1,400 families under the Recovery and Resilience Programme (PRR). The Government of Madeira aims to build 783 homes by 2026 in the autonomous region’s 11 municipalities. The projects built in the 11 municipalities may suffer changes due to the rise in the price of raw materials and labour shortages. At stake is the acquisition of 533 homes at controlled costs and the rehabilitation of 325 homes, especially regarding energy efficiency improvement. There is also a budget of 1.6 million euros for information technologies linked to social housing.

Midweek, it was announced that Herdade Monteverde is the new residential tourist resort on Lisbon’s south bank. Located in a 102-hectare nature reserve, Herdade Monteverde will have 355 homes, including detached villas, townhouses, and flats. In partnership with the SIL Group, Homelovers is now exploring this new project after the success of Herdade da Aroeira. It is a tourist residential development, so it may be eligible for Golden Visa buyers. Prices for detached villas start from €740,000 and townhouses from €420,000.

Meanwhile, a new My Auchan convenience store has opened in Costa da Caparica. More My Auchan shops are planned for the coming years. This is the 32nd My Auchan shop to open. The 385-m2 space is located in Rua dos Pescadores and intends to offer a simple and quick response to its customers and a better shopping experience.

With the week coming to an end, the São João da Praça was announced as a new residential project in Alfama. The new project next to Sé de Lisboa, is the result of the rehabilitation of a Pombaline building in Alfama. The renovation project, designed by Appleton & Domingos Arquitetos, will bring to this traditional neighbourhood nine modern 1 to 2-bedroom flats, and two duplexes on the top floor. The areas of the flats vary between 60 m² and 124 m², with prices from €500,000 to €1,040,000. Construction began in April and delivery of the flats is scheduled for the last quarter of 2023.

Finally, Sonae Capital announced the sale of Aqualuz Tróia Mar & Rio and The Editory By The Sea Tróia-Comporta. The Editory Hotels, Sonae Capital’s Hospitality business unit will keep the management of these tourism assets, with a total of 377 rooms. This is one of the largest real estate investment operations in hotels carried out in the Portuguese market since the beginning of the year, the transaction value of which was not disclosed.

“All of our clients are special” – Nuno Pombal, Project and Development Services at Aura Ree Portugal and Spain’s Business Development Services department

May 18, 2022

A little over a year ago, Aura Ree decided to create a new Business Development Services department. The department is led by Nuno Pombal, who, in an interview with Brainsre News Portugal, explains a little about Aura Ree’s new business area’s main objectives and challenges.

Nuno Pombal, who was trained and had plenty of experience in interior architecture and construction, tells us about the challenges with permanent contact between investors and owners and lifts the veil on some of the most interesting projects on which he is working. These demonstrate the differences he intends to introduce to the market, including the most dynamic and challenging sectors.

1 – About a year ago, you decided to launch this new Business Development Services department at Aura Ree Portugal and Spain. What have the last twelve months brought?

Aura REE was created and quickly grew to become the undisputed market leader in the Iberian Peninsula in NPL and REO portfolio transaction advisory. With in-depth knowledge of the market, some of our clients have challenged us to support them in finding off-market business opportunities. We didn’t want to compete with international brokers or companies that already have integrated departments. We saw an opportunity to do it differently. To bring a breath of fresh air to the market by creating tailor-made, personalised solutions. Not to have gigantic teams that end up losing focus, but to dedicate the most attention and effort to finding the right solutions for our clients. The purpose of this department is not only to do business in property sales and rentals, monitor adaptation or construction works or even support future management. It’s much more than that: our clients feel good knowing that there is effectively someone who dedicates time to listen to them. We have a global vision of the market, and we are following the trends of current demand. The expression 360º service is not new to the market, nor are we re-inventing the wheel. We are simply deconstructing the essence of something that has always made sense but hasn’t brought practical results in recent years.

2 – What led Aura to invest in this department, and what are you looking to bring to the market?

Our mission statement says it all about our approach: “All our clients are special”, and they know that we really dedicate ourselves to finding the best solutions for them. My experience as an interior architect helps a lot here because it allows me to analyse some transactions from the point of view that a realtor cannot. The advisory team contributes to all the operations we work on, measuring the projects’ profitability. More than just perceiving whether asking prices are inflated or not, we think of solutions that can effectively create added value and unlock their potential. When we cross the commercial side with the technical analysis, since we follow all the technical and urbanistic due diligence processes for the properties, the solution is on the road to success. Of course, doing things well and holistically takes time. However, at the end of the day, there is a feeling of accomplishment that is frankly rewarding.

3 – In your daily contact with investors and owners, which sectors are the most dynamic and challenging?

What I am about to say is not new. The logistics and hotel sectors are dynamic, with strong demand and a very low or limited supply of quality assets. This has led to continual growth in asking prices in these sectors. Trying to get out of this market euphoria, I am working on properties that can effectively bring something new to investors and think of long-term investment solutions.

From the point of view of the challenges we face, the main ones have come from rural real estate. I have a group of investors who specialise in large-sized agricultural real estate. The challenge is not only in finding those properties but also in analysing the preferred crops and having associates, or potential associates, individuals or entities that can guarantee they’ll take over the farming. These investors of mine do not intend to operate the farms but rather guarantee an income to be paid by those who do. Despite the challenge, it has been fantastic to break into the agricultural property market, considering, until recently, our limited track record in that sector.

4 – Being a department that aims to provide a 360º service, can you elaborate on the most “sui generis” project you have been involved in and what challenges you have encountered?

I am involved in a very interesting project. We have a North American investor, an airline pilot who wanted to find a property in Portugal, the country where he wants to retire. He wants to create something similar to what already exists in various parts of the United States: a pilots’ village. It’s not easy in Portugal because there aren’t many private properties potentially for sale that have a runway and are large enough to allow for the construction of high-quality homes that could house the pilots, creating a kind of village in the form of a private club.

It has been a huge challenge, involving visits to the town hall, and consultations with ANAC and Beja Airport, due to the licencing required for the runway. There have been many interesting issues in this process in an area I was unfamiliar with. Our involvement will continue up to the implementation phase of the potential project to build the housing. Controlling the development of an innovative project in Portugal and being able to give it a personal touch is very gratifying.

5 – How has your background and experience in architecture and construction been useful in structuring integrated solutions for clients? Has the organisation and occupation of spaces and consequent profitability of investments changed in this era of “Covid”?

My contribution effectively supports the realisation of some projects regarding the occupation of space, making each m2 profitable and viable. Giving the example of a business we are working on, an office space, where the client wants to know how we suggest sectioning the space to make it profitable and turn it into a dynamic and, above all, flexible co-working space. My contribution involves creating technical solutions to make the defined strategy viable. In terms of housing and hospitality, I have also brought my concept of space to the businesses I work with, helping the client find the best solutions and allowing them to be more aggressive in any potential bids.

6 – Can you share a little bit of what kind of projects you have on your desk today? If I were an investor, where would you recommend I invest?

The tourism and logistics sectors that I have already mentioned continue to be good investment options as long as they include flexible and sophisticated solutions. However, if I had to invest my money today, I would invest it in health and senior residences and/or long-term care projects. Given the country’s characteristics, this is one of the sectors with a great future and in which the returns can be very interesting. International players’ interest in this sector in Portugal has been growing a lot, both from a management and an investment point of view.

On my desk, I confess that I have some very interesting projects. The portfolio of agricultural real estate I have already mentioned is something I really cherish due to the challenges. But if I had to highlight a project besides the one related to aviation that I have already mentioned, it would be a plot of land for a sustainable residential project, 100% integrated into the surrounding environment. In this project, I am working on the seller’s side and trying to find an investor that values three absolutely important aspects: location, quality and sustainability. These three pillars are the future of real estate in Portugal. Being involved in one of the first projects in this area is the experience of a lifetime.

7 – We are today at a key moment for the energy transition. What are the biggest concerns when analysing assets and presenting proposals to investors? Is sustainability already a reality in our market?

The market is gradually starting to change. The need for return and the difficulty of managing high development costs with ecologically more efficient solutions has been a major challenge for investors and developers. Thinking about sustainability and ESG policies, which is an obligation for the financial market and expanding to the corporate segment, is starting to appear on many investors’ radars. It is still a long way off, but we must think of the future, of our children and future generations. Creating a sustainable environment is not only about focusing on environmental issues but also on social and integration issues, where real estate has a major part to say.

#Brainsflash

May 9, 2022

This week’s sale of an office building on Avenida de Berna for 15 million euros was the most noteworthy.

At the start of a month, when summer is already making itself felt, the sun also seems to be shining on the entire real estate sector. The dynamism is apparent all over the country, including the archipelagos.

Brainsre News Portugal learned that Palacete Benformoso in Lisbon had been placed on sale for 3.4 million euros earlier this week. The 19th-century palace is classified as Property of Public Interest and is located in the neighbourhood ofIntendente, one of the most attractive areas for investing in Lisbon today. Athena Advisers are marketing the manor.

Meanwhile, doValue announced the launch of a new luxury development in Funchal. The Casas Brancas project consists of 11 villas located in a tourist area of the parish of São Martinho, Funchal. Designed by the architect Paulo David, the development is set on a rectangular geometric base plot of about 3,322 m2. These villas are arranged on three levels, allowing for south-facing balconies and terraces with excellent natural light and sea views.

Soon after, a building on Avenida de Berna, currently occupied by Cofidis and Prosegur, was sold for 15 million euros. The property, located at number 54 Avenida de Berna in Lisbon, was acquired by a Portuguese institutional investor from Tristan Capital Partners’ CCP 5 fund. With a gross area of 3,825 m2 and 124 parking spaces, the building is located right in front of the Calouste Gulbenkian Foundation, between Campo Pequeno and Praça de Espanha.

In Lisbon again, we learned that the Promenade development had been completed. The project underwent a total investment of around 50 million euros. The building was the target of high levels of demand by foreign investors, who account for 80% of the building sales on Lisbon’s waterfront. Located at 24 de Julho Avenue, the Promenade enterprise is one of the real estate developer AM|48’s most iconic projects. The building was designed by the award-winning architect Frederico Valsassina and constructed by Mota-Engil.

Further north, Mercadona opened a new store in Póvoa de Varzim. With a sales area of 1,900 m2, this is the chain’s 31st supermarket in Portugal and the first in that city. Last Tuesday, Mercadona opened the new supermarket at Rua Comendador Francisco Quintas, in Póvoa de Varzim.

Also in the north, and approaching the end of the week coming up, Supera announced that it would invest €10 million in Gaia. Supera already operates two sports centres in Portugal and has seven more projects underway in Portgual. The Spanish group will build a swimming complex in Gaia, after having been granted a 40-year municipal concession. The Aquatic Training Complex will be built in Gaia’s Parque da Lavandeira. The Galician group Sidecu, which operates the Supera brand of gyms, has 45 locations in Spain and two in Portugal, and plans to invest 10 million in the facility. The brand also has other projects underway in Portugal, in Braga, Porto, Coimbra, Seixal, Barreiro and Lisbon.

Finally, in the logistics sector, a logistics operator has acquired land in Vila Franca de Xira for more than 2 million euros. The transaction was concluded in March, but was only just announced. The real estate credit and asset manager, doValue Portugal, intermediated the sale of a plot of land with a total area of 100,560 m2 to a well-known Portuguese logistics operator. With excellent access, the land is located in Castanheira do Ribatejo, Vila Franca de Xirae.

The State of the Portuguese Real Estate Market in April

April’s property market remained vigorous and resilient at the start of the second quarter of the year. After two years of the pandemic and an international conflict currently affecting the entire European economy, the sector is weathering the storm and saw significant investments during the month in various sectors.

Residential

The month was halfway through when the beginning of the construction of MERECES 718 was announced, in an 8-million-euro investment. The first building of the new multipurpose complex, developed by dstgroup, includes 36 flats and two shops in Barcelinhos, the municipality of Barcelos. Focused on creating a familiar and safe environment, the project has already sold more than 40% of the units.

Meanwhile, the Convento do Beato will include a residential condominium with more than 60 flats. The Larfa Properties group will redevelop the surrounding buildings to accommodate this condominium with 61 flats and a central square with a garden which will bring together the entire block. The area in Lisbon is being completely redeveloped to integrate well-known events space with a new residential condominium called Beato Quarter.

Finally, the real estate developer SOLYD Property Developers started work on the third and final block of Lago Altear. 80% of the units have already been sold in just three months. The building, LAGO ALTEAR – Block C, is the seventh launch of the project ALTEAR, consisting of 63 new flats and three commercial spaces in Alta de Lisboa. Composed of three buildings, Block C represents an investment of 31 million euros. The first two blocks were already concluded and fully let. The construction company Alves Ribeiro is responsible for the project to be completed in 2024.

Offices

A the beginning of the month, WeWork announced that it would open the first flex office space in Portugal. The first tenant will be Organon, a multinational operating in the health sector, and the space will be inaugurated in the summer of 2022. The building located at Rua Alexandre Herculano will mark the 39th country for WeWork globally.   The opening in Portugal reflects the company’s growth strategy, which involves expansion into markets with strong demand for flexible workspaces. Organon, a global leader in women’s health and a valued member of WeWork worldwide, will occupy three floors of the building.

Industrial and Logistics

April also began well for the industrial and logistics sectors, starting with doValue’s announcement regarding its sales of three commercial properties for €5.9 million. The transactions were completed in the first quarter of this year but have only just become public. The assets are located in Abrunheira, Sintra, the Industrial Area of Santarém and the Warehouse area in Taveiro, Coimbra. DoValue Portugal intermediated the sale of three commercial buildings. The operations concluded in the first quarter of this year totalled close to 6 million euros.

Meanwhile, Panattoni announced an investment of 50 million euros in its first logistics park in Portugal. The logistics-industrial real estate developer has debuted in Portugal, developing the largest logistics project in the country’s north, including two buildings with surface areas of 27,000 m2 and 47,000 m2 for lease in Porto. Panattoni’s first deal in the country was the acquisition of 150,000 m2 of land in the industrial complex of Campo Valongo, Porto. Panattoni Park Porto, the new logistics facility, results from a purchase from the Braga-based Castro Group, which will also be responsible for supervising the different phases of the project’s pre-construction process.

With the month drawing to a close, Aldi announced a 60-million-euro investment in its largest distribution centre. Located in Moita, the warehouse will allow it to supply more than 100 Aldi shops in Portugal rapidly. The food retailer also stated that the centre, with an area of 57,000 square metres, will streamline the supply of goods to shops across the country. The structure was designed to support over 150 shops in the country and arose due to the need to support Aldi’s expansion plan in Portugal, aiming to reach 200 shops by 2025.

Student Residences

The Universidade Nova de Lisboa announced the launch of a tender to create a University Residence in Caparica. The project will result in the largest accommodation for the academic community in Almada. With up to 550 beds, it will be the largest accommodation for students, teachers and researchers in the Almada region. The purpose of the tender is the constitution of a surface right for a lot located on the Campus of the Faculty of Sciences and Technology (FCT) in Caparica, Almada.

Residences for Senior Citizens

Thor announced the expansion of its portfolio, acquiring a social and health project in the heart of Porto. In Porto, the private equity firm bought a senior citizens’residence on Rua 5 de Outubro. The move is part of its investment plan on the Iberian Peninsula. It will develop a six-storey building with a surface area of more than 6,910 square metres, with 96 single rooms and eight double rooms.

Hotels

Fontinha Hotel opened at the beginning of the month in the historic centre of Porto. The urban rehabilitation project results from a 14-million-euro investment by Mercan Properties.

The new four-star hotel has 49 rooms on six floors. The first Trademark Collection by Wyndham hotel in Portugal was built on the site of an old quarry. The new four-star hotel is located in the city’s historical centre, between Rua da Fontinha and Rua de Santa Catarina.

Meanwhile, the Barceló Angra Marina has been awarded at the Traveller Review Awards 2022. The awards have been given according to customer reviews in recent years. The Traveller Review Awards 2022 were awarded to 113 Barceló Hotel Group hotels located in 13 countries in Europe. The only five-star hotel in Angra do Heroísmo, on the island of Terceira, was one of the winners. The hotel has 130 rooms and is an urban holiday resort located next to the sea, and the Angra do Heroísmo marina.

Shopping Centres

With April drawing to a close, Grupo Domingos Névoa announced it had acquired two shopping centres for more than 20 million euros. Its initial acquisition of the Braga Retail Center was followed closely by the Mira Maia Shopping. The Braga group intends to reinforce its presence in this sector. Mira Maia Shopping, inaugurated in 2009 by the bankrupt FDO in a €45 million investment, was managed by Inogi – Asset Management. The asset is located close to Francisco Sá Carneiro Airport, has 19,000 square metres of gross lettable area, around 80 shops and approximately 850 parking spaces.

Proptech

Tiko announced that it is continuing its expansion in Portugal with a new branch in Porto. Tiko now has three locations in Portugal: Lisbon, Setúbal and Porto. The company is the first international iBuyer to operate in the Portuguese market and is looking to expand further after beginning its expansion in November 2021. It chose Lisbon as its first overseas location and is now expanding to Porto.

#BrainsFlash

The biggest investments and main highlights of the last week in the real estate market.

May 2, 2022

Aldi invests 60 million euros in its largest distribution centre.

After the first quarter of the year, for which statistical data is still being released, this last week of the month was very tranquil regarding investments in the real estate market. Still in a transitional phase after the Easter period and with a holiday at the beginning of the week, these last few days were, in fact, very quiet in transactions and operations in most of the real estate sectors.

Of note was the announcement that Aldi has invested 60 million euros in its largest distribution centre. Located in Moita, the warehouse will allow it to supply more than 100 Aldi shops in Portugal. The food retailer also stated that the 57,000-m2 centre would streamline the supply to its shops across the country. The facility was designed to supply over 150 shops in the country. The investment came in response to Aldi’s expansion plan in Portugal, aiming to reach 200 shops by 2025.

At the end of the week, Grupo Domingos Névoa announced it had acquired two shopping centres for a total of more than 20 million euros. Its initial acquisition of the Braga Retail Center was followed closely by the Mira Maia Shopping. The Braga group intends to reinforce its presence in this sector. Mira Maia Shopping, inaugurated in 2009 by the bankrupt FDO, in a €45 million investment, was managed by Inogi – Asset Management. The asset is located close to Francisco Sá Carneiro Airport, has 19,000 square metres of gross lettable area, around 80 shops and approximately 850 parking spaces.

The State of the Portuguese Real Estate Market in February

The month of February saw both positive and negative events and reports, though they are not expected to harm the real estate market in Portugal.

The real estate sector has overcome, in various ways, the turbulence of the last few years, regularly demonstrating its resilience. On the one hand, pandemic-related restrictions are being increasingly eased, providing a boost of confidence to every sector of the Portuguese economy. On the other hand, the end of the month brought the news of a devastating war that is likely to roil the worldwide economy.

However, last month, even with Carnival, was a period of impressive reports in investment and transaction markets. There was an enormous emphasis on one of the sectors that suffered the most over the last two years but which nevertheless maintained its dynamism. In this month of February, the announcements of hotel groups stood out from the other sectors, by the sheer number of planned investments.

Residential

The residential sector continued to provide a slew of new projects. Among others, a new condominium will go up in the Old Prado Factory in Matosinhos. The old sardine canning factory, which closed 20 years ago, will be completely refurbished and converted into 30 1-5 bedroom flats, just 200 metres from the beach, on one of the city’s main avenues. Marketing is the responsibility of JLL and Predibisa. The value of the investment was not disclosed.

Offices

Also in Portugal’s north, Sonae Sierra and the Ferreira Group announced that they would develop a state-of-the-art office complex in Porto. The project fits in Sonae Sierra’s strategy regarding cities of the future and the Ferreira Group’s strategy to be present in markets with high demand. With an investment of 42 million euros, the complex will be developed with a contemporary and flexible architecture and with demanding sustainability requirements. The office complex, designed by Broadway Malyan, will have modern architecture, emphasising flexibility, innovation, and sustainability, prioritising the quality of spaces, comfort and people’s well-being.

Logistics

Meanwhile, the German supermarket chain Aldi announced a €50 million investment in a logistics platform in Santo Tirso. Construction is expected to start in March, and the platform should be operational by mid-2024. The project will be built in the Ermida Business Centre on the land at Quinta da Chinesa. The logistics platform will occupy an area of 160,000 square metres, with 40,000 square metres of constructed surface area.

Retail

In the Portuguese capital of Lisbon, Principal announced that it had acquired a supermarket for 10.2 million euros. The space has a 15-year long-term lease agreement with Continente, Portugal‘s leading food retailer and part of the Sonae Group. Principal Global Investors acquired the supermarket in Greater Lisbon, Portugal, for its Principal European Durable Income Fund (PEDIF). The market in Setúbal has 2,700 m2 of surface area.

Hotels

In February, hospitality was the most prominent sector in the Portuguese real estate market. The Editory Riverside Santa Apolónia Hotel opened its doors after a 12-million-euro investment. The new 5-star hotel results from the rehabilitation of a part of the Santa Apolónia railway station in Lisbon. The Editory Riverside Santa Apolónia Hotel has a total of 126 rooms.

Meanwhile, the Vila Galé Group announced that it would invest around 35 million euros this year in four hotels in the Azores, Tomar and Beja. Among the news is the investment of 12 million euros in the renovation of part of the former Convent and Hospital of São Francisco, in Ponta Delgada, Azores, converting it into a boutique hotel in partnership with Santa Casa da Misericórdia. In the centre of the city of Tomar, Vila Galé will recover and refurbish several areas of the former Convent of Santa Iria and the Women’s College, with an investment of around ten million euros. In Beja, the hotel group has two projects in the pipeline: Vila Galé Nep Kids and Vila Galé Monte da Faleira. The former will cost about ten million euros. Vila Galé Monte da Faleira will involve an approximately three-million-euro investment in agro-tourism.

The IHG Group will also invest in new hotels in Portugal. The big news is the debut of the IHG brand, Staybridge Suites, which will open in Porto and Carcavelos. Porto, Cascais, Lisbon and Évora were chosen for five new hotels in which InterContinental Hotels Group intends to invest. The openings are planned for between 2022 and 2025. The total investment has yet to be disclosed.

Alternative Assets

Further south, the Fábrica da Cerveja in Faro will be converted into a creative hub. The investment by the Faro City Council will reach 13.4 million euros and is part of Faro’s bid to become the European Capital of Culture in 2027. The rehabilitation will take around five years to be fully completed and is intended for a network of local, regional, national and international partnerships. The intervention will go through four phases, and the first two may be completed in 2026 or 2027.

NPLs

Montepio announced that it is preparing to sell a bad debt and real estate portfolio, and the bank hired the Japanese investment bank, Nomura, to conduct the operation. The NPL portfolio is valued at around 1.4 billion euros, but initially, a portfolio of €500 million should leave the bank. The major players in the market have not been invited to participate. Nomura is in talks with a closed group of investors.

The State of the Portuguese Real Estate Market in January

After the past year, when real estate was a significant engine of growth for the Portuguese economy, we start the new year, 2022, with continued market strength, both in the amount invested and the number of transactions.

February 1, 2022

After the past year, when real estate was a significant engine of growth for the Portuguese economy, we start the new year, 2022, with continued market strength, both in the amount invested and the number of transactions.

January began with some outstanding transactions, namely in the office, retail, logistics and hotel sectors. Residential was less active, with no major transactions of note.

The first month of the year also marked a period of continuity for a large swathe of the corporate sector in terms of investment volumes for the previous year. Most of the firms connected to the real estate sector have forecast a banner year for 2022, with investment maintaining last year’s dynamism.

 

Offices

The highlight of the office sector last month came in the form of Caixa Geral de Depósitos’ sale of the Camões Building for 20 million euros. CGD sold Edifício Camões 155, in Porto, to Finangeste. The building’s new owner has stated that it will invest €3 million in refurbishing the property. Camões has 10,000m2 of surface area and is currently the home of Portugal’s Department of Investigation and Penal Action (DIAP). Spread over ten above-ground floors, it also has 91 parking spaces. CGD itself is another tenant and has a branch there, along with its social services division. The deal was finalised at the end of last year but has only just now come to light.

At the end of the month, PATRIZIA announced the sale of a mixed-use office building in Lisbon for 45.25 million euros. Principal Global Investors acquired the office and retail building in Lisbon from PATRIZIA’s TransEuropean VI fund. Dom Luís I has a total leasable area of 10,300 m2, including 8,100 m2 of office space on seven floors and 2,200 m2 of retail and leisure space on the ground floor. The property is located in the riverside area of Lisbon.

 

Retail

Just after New Year’s, a fund managed by BPI acquired the Galerias Saldanha Residence for 27 million euros. BPI Imofomento, an open-ended real estate investment fund, acquired the asset in Lisbon from Novimovest, a closed-ended investment fund managed by Santander Asset Management. Located in the heart of the city of Lisbon, Galerias Saldanha Residence is situated in one of the prime areas for offices in the capital. It boasts 6,900 m2 of GLA (gross leasable area) and 40 shops.

Very soon afterwards, the news came that a new Retail Park will be built in Portimão. The new space, developed by Mitiska REIM, will have around 22,000 square meters of GLA, including 18 shops. The investment is set to exceed €20 million. Nova Vila Retail Park is located three minutes away from downtown Portimão. Broadway Malyan is responsible for the development’s architectural project, which is scheduled to open in the first half of 2023.

On the last day of January, the news was published stating that the Évora Retail Park had been sold for 6.1 million euros. M7 Real Estate sold the roughly 6,000-m2 retail space to Europar Investimentos & Participações, a Brazilian family office. The buyers intend to build an additional 2,000 square meters for new shops. The transaction, finalised in September of last year, has only now been revealed. However, it seems that Europar has already sold a part of the property.

 

Logistics

Halfway through the month, news broke that Savills had advised Norfin on the sale of an over 35,000-m2 logistics complex. The international real estate consultancy Savills advised Norfin on the sale of two logistics assets formerly part of the Iberia FEIF. One of the properties is in Cartaxo, while the other in Quinta do Adarse in Alverca do Ribatejo. Both are fully leased. Located in consolidated logistics zones, the units were acquired by Bedrock Capital and Europi Property Group. The amount of the investment was not disclosed.

Shortly afterwards, Mercadona announced that it would invest 24.5 million euros in a new warehouse. The supermarket will expand its logistics capacity by building a new warehouse in Póvoa de Varzim. After having started operating the Póvoa de Varzim Logistics Block in 2019, Mercadona now has a new 12,000-m2 warehouse. The new facility, built on 50,000 m2 of land adjacent to the one it has already been operating since 2019, is a response to the continued success of the company’s expansion project in Portugal.

 

Student Residences

Catella CER announced a €15.5 million investment in a student residence in Portugal. Catella European Residential Fund (CER) is making its first investment in the Portuguese market, acquiring a student residence in the municipality of Cascais. Value One Holding sold the asset to the Sweden-based firm. The student residence is located in Carcavelos, Cascais, close to the beach and a 10-minute walk from NOVA School of Business and Economics (Nova SBE). The 6,622-m2 property was built in 2020 and consists of 192 spacious single rooms (20 m2 on average), with a gym, roof terrace, study, music and leisure spaces and parking. It is 99% occupied and has obtained the LEED Gold sustainability certification for its construction.

Further north, Porto will also gain three new university residences. The new facilities will add another 270 student beds to the city’s supply. The municipality of Porto made the announcement. One of the properties will be in Morro da Sé, in the city’s historic centre, with an estimated investment of around 7 million euros. The other will go up in Monte Pedral with an investment between 6 and 6.5 million euros.

 

Hotels

January started strong in this sector, as the Fortera group announced that it would invest 11.5 million euros in the Azul Boutique Hotel. Fortera will begin construction in February on the hotel in Vila Nova de Gaia, which will be completed in 2023. In another sign of tourism’s resilience, Vila Nova de Gaia will host a new 4-star hotel overlooking the Douro River. Fortera Properties informs that the new 4-star hotel, 50 metres away from the D. Luis I Bridge, will consist of 64 rooms with a view over the Douro River and will also have a restaurant, a terrace and a solarium with a pool on the 4th floor, covering a total area of 4,200m2.

Meanwhile, “The Emerald House” opened its doors in Lisbon. The first Curio Collection by Hilton hotel in Lisbon is located on Rua das Janelas Verdes. Emerald House, which has 67 rooms overlooking the Tagus River and the city itself, represents the group’s second property in Portugal. It owns a global portfolio of over 100 unique hotels and resorts in about 30 countries. It

 

Prop-tech

At the end of the month, Casavo announced its arrival in Portugal with an investment of 100 million euros. The real estate platform, known for buying houses in just seven days, has set up shop in Lisbon and plans to continue its business model of buying homes in Portugal. The firm is looking to transform the experience of buying and selling homes, offering a faster, simpler and more transparent service, in line with the strong growth of the real estate sector and its strategy to expand into new markets. Casavo’s technology platform provides for instant property valuations based on its patented algorithm, which analyses multiple variables, allowing it to submit a direct purchase offer within 48 hours.

 

Alternative Assets

The Portuguese state sold the Hospital do Desterro for 10.5 million euros. Most recently the former Hospital do Desterro, on Avenida Almirante Reis in Lisbon, was bought by its tenant: Mainside Investments. The property is slated for conversion into a hotel. Mainside purchased the former hospital, in Lisbon, from a state-owned real estate company. Last December, the two entities reached an agreement. The former Mosteiro de Nossa Senhora do Desterro, built in the late 16th century, will become a hotel (which will operate through Zero Hotels), including a restaurant area, perhaps, a production hub for companies.

Porto to Gain Three New University Student Residences

January 24, 2022 – Ana Custódio

The Porto City Council and the University of Porto will move ahead with three new university residences. The new buildings will provide the city with another 270 beds for students.

Already scheduled for inauguration before the next academic year, the first student residence will be in Porto’s historic centre. The residence will be in renovated facilities at the former Centro Social da Sé, on Rua da Bainharia. The 20-bed facility was donated and renovated by the City Hall.

This agreement is a part of a pilot project. The municipality, the Academic Federation of Porto and the University of Porto will share the management of student residences.

One will be in Morro da Sé, in the city’s historic centre, with a planned construction area of 6,750 m2 and an estimated investment of around 7 million euros. The third, in Monte Pedral, Constituição, has a planned construction area of approximately 5,000 square metres and is forecast to cost between 6 and 6.5 million euros. According to the statement, these structures will accommodate around two hundred students in areas of the city with easy access and several public transport options.

Early last week, the applications were subject to analysis at a meeting with the mayor, Rui Moreira, and the rector of the University of Porto, António Sousa Pereira. The councillor responsible for education, Catarina Araújo, the councillor for urbanism, Pedro Baganha, and the chief of staff, Vasco Ribeiro, also took part. The University of Porto was also represented by its vice-rector, José Castro Lopes, and by the pro-rector, Pedro Alves Costa.

Read the full article in Portuguese

Translation: Richard D K Turner

Catella CER Invests €15.5m in Student Residence in Portugal

The 6.622-m2 student residence is located in Carcavelos, Cascais, and comprises the fund’s first investment in Portugal.

January 21, 2022 – Brainsre.news

The 6.622-m2 student residence is located in Carcavelos, Cascais, and comprises the fund’s first investment in Portugal.

The Catella European Residential Fund (CER) is investing in Portugal for the first time, paying €15.5 million for a 99-year concession for a student residence in the municipality of Cascais.

The Berlin-based Catella Residential Investment Management GmbH (CRIM) as the investment manager and Catella Real Estate AG, a Munich-based AIFM platform, were advised by Catella AM Iberia S.L. on the transaction. Value One Holding sold the asset.

In a statement sent to brainsre.news, managing partner of CATELLA-AM Iberia, Eduardo Guardiola, commented: “This transaction is a milestone for CER, the fund’s first investment in Portugal, and also for CRIM, as it represents its first acquisition in Portugal. It is also an important transaction for Catella AM Iberia, as it is our first asset under management in Portugal and the third student residence under management. There is no doubt that the Portuguese real estate market presents interesting opportunities in affordable student residences, residences and offices, markets that are very different in their maturity and size, but all of them interesting to us in different ways.”

The student residence is located in Carcavelos, in the municipality of Cascais, close to the beach and a 10-minute walk from NOVA School of Business and Economics (Nova SBE). Lisbon’s city centre is 20 minutes away by train.

The 6,622-m2 property was built in 2020 and consists of 192 spacious single rooms (20 m2 on average), a gym, rooftop terrace, study, music and leisure spaces and parking. It is 99% occupied and was awarded a LEED Gold sustainability certification after its construction.

Vienna-based MILESTONE is part of the Value One Group and is the current manager of the asset. The international real estate developer and student residence operator brings extensive knowledge of the design and management of student residences, combined with international experience. MILESTONE currently has 4,627 student beds under development and management in Austria, Portugal, Germany, the Netherlands, Poland and Italy.

The CER Fund has over €1.6 billion in AUMs including approximately 70 assets, generating a net annual internal rate of return of 9.6% since its launch in 2007.

Translation: Richard D K Turner

The State of the Portuguese Real Estate Market in December

January 3, 2022

Despite the current slowdown due to the festive season, the real estate market in Portugal has powered on, toasting the coming New Year with some of the biggest transactions and announcements of the year. December saw a series of deals, underscoring the strength, stability and resilience with which the market has faced the uncertainty of the last two years.

The point was reinforced once again by further recognition of Portugal’s tourism industry, as the country won 12 awards in the 28th edition of the World Travel Awards 2021, the most well-known prize in the sector. The trophies, awarded since 1993, served to highlight Portugal’s dominance in several categories. Madeira stood out by receiving the “Best Island Destination in the World” award for the seventh consecutive year. At the same time, Parques de Sintra was named the “World’s Best Conservation Company,” a category in which it has taken awards for eight straight years. The Paiva Walkways were also considered the “Best Adventure Attraction” for the fourth year in a row, and Dark Sky Alqueva won the “Responsible Tourism” category.

In other news, a decree was published in the Diário da República stating that the price per square metre for IMI taxation purposes will increase in 2022. The increase will be 25 euros compared to the price in 2021, rising to 640 euros, up by 4% compared to 2020. This update applies to all property valuations carried out from 1 January 2022.

Residential

In this sector, the Salgueiral Residences development announced that 90% of its more than 70 flats had already sold, in an investment of over 13 million euros. The condominium is located in the Guimarães city centre and boasts the highest standards of comfort coupled with state-of-the-art technology.

Offices

The Ageas Portugal Group acquired an office building in Lisbon. The operation represented the Group’s fourth acquisition in the real estate sector in 2021, which totals €100 million invested this year. In Sete Rios, Lisbon, the Bloom building has a gross above ground construction area of 5,500 m2. The amount of the investment was not revealed.

Logistics

Halfway through the month, Lidl Portugal inaugurated its first semi-automated logistics centre in a 73-million-euro investment. The supermarket chain’s next stop is in Santo Tirso, where it will continue to increase its bet on Portugal’s Northern region. The recent and most modern Lidl logistics centre is already operating at 100%, taking over the supply of its supermarkets in the north of Portugal. Located in Zona Industrial da Ermida, the warehouse occupies an area of 48,000 square metres and can supply more than 100 shops. The storage capacity is 55,000 pallets, and it has over 90 docks.

Student Residences

Also in early December, the Ageas Portugal Group, Promiris and Cetim signed an agreement to build a student residence in Porto. The investment amount was not revealed. Construction was scheduled to begin at the end of 2021, and the home is expected to open its doors during the summer of 2023. The 265-room purpose-built student residence, near the University of Porto’s Faculty of Engineering, will be managed by the French group Odalys.

NPLs

Nearing the end of the month and year, the Portuguese Securities Market Commission (CMVM) revealed that Novo Banco’s portfolio of non-performing loans, called the Harvey Project, was sold for €52.3 million. The portfolio, which had a value of 164.4 million euros last September, was sold to the Deva Capital Management Company fund and the Arrow Group’s AGG Capital. The completion of the transaction, under the agreed terms, is expected to impact the capital position and income statement of the bank led by António Ramalho.

On the last day of the month, the CMVM also announced stated that Banco Montepio had sold a 253-million-euro non-performing loan portfolio. The acquisition of the assets, which includes 10,318 registered loan contracts, was carried out by LX Investments Partners III, BTL Ireland Acquisitions II Designated Activity Company and BTLP Acquisitions I Unipessoal, Lda.

Alternative Assets

Again at the end of the December, the French group Icade Santé announced that it had acquired three Lusíadas hospitals and HPA Saúde’s Hospital Privado S. Gonçalo for €213 million. The four assets comprise Fidelidade’s entire SaudeInveste fund and are the Icade Santé’s first investment in Portugal. The hospitals have a total area of 90,000 square metres and over 500 beds. The three Lusíadas properties are located in Lisbon, Porto and Albufeira, while the fourth property, Hospital Privado S. Gonçalo, is in Lagos.