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Sonae Capital Looking to Sell Porto Palácio Hotel Building for at Least €70MM
29 March 2019 – Richard D. K. Turner
According to an article on Economia Online, a digital Portuguese business news site, Sonae Capital is looking to sell one of its holdings in the northern city of Porto. The Porto Palácio Congress Hotel & SPA is a mixed-use development consisting of three structures, including the hotel, offices and restaurants, with a total area of 47,352 square meters. The asset is held within a closed real estate investment fund, WTC, and is valued at approximately 70 million euros. Sonae is unlikely to accept an offer below that level. Sonaegest manages the fund for Sonae Capital.
According to a prospectus, the fund’s assets include a five-star hotel, which Sonae would continue to operate and two office buildings. The 215-room Porto Palácio Congress Hotel & SPA, located at number 1269 Avenida da Boavista, has a surface area of 31,087 square meters. The hotel alone is valued at €34 million.
The Boavista Office building, the headquarters of the Maló Clinic in Porto, has offices, shops, restaurants and parking. The 8,335-square-meter property currently has an occupancy rate of 98%.
The final asset, the WTC Office building, has a total of 7,929 square meters, including offices, shops and restaurants, and a health club currently occupied by Solinca Health & Fitness. The asset ’s occupancy rate currently stands at 86%.
Sonae Capital declined to comment on the sale, but sources stated that the company is unlikely to accept less than 70 million euros for the assets.
According to a valuation by Cushman & Wakefield of Sonae Capital’s real estate assets, the multinational had a total of 85 assets, valued at 287.4 million euros, at the end of November of 2018.
Original Story: Economia Online / Rita Neto
Photo: D.R.