Spain’s Merlin Property and Hispania Looking to Invest in Portugal

22 March 2018

The Spanish companies Merlin Property, which specialised in offices, and Hispania, which primarily invests in the hotel sector, are targeting Portugal for future international expansions.

According to the Spanish newspaper La Vanguardia, the directors of both listed real estate investment companies (Socimis), spoke of their intention to take a close look at Portugal for any potential future acquisitions, at a press conference today. The announcements came during the “Iberian REIT Conference,” which was organised by the European Public Real Estate Association (EPRA) and the Iberian Property platform.

Ismael Clemente, Merlin’s president, “stated that their company is committed to making acquisitions in Portugal in the future and added that, for now, the company would limit its international expansion to its neighbouring country [of Portugal],” the Spanish newspaper reported.

He also said that the company currently has offices and a shopping centre in Lisbon and hopes to increase its portfolio of retail parks in the city. Mr Clemente said that while Portugal and Spain are very similar markets, the difference is that Portuguese market “is still in the hands of predatory funds.” This is because, in his opinion, “it has not yet created a framework for socimis (Portugal is studying legislation to create REITs – Real Estate Investment Trusts).”

According to La Vanguardia, Mr Clemente also stated that, for the time being, Merlin’s shareholders do have no plans to invest in areas outside of the Iberian Peninsula, although he did not rule out the possibility of a change in the future.

Cristina García-Peri, the general director of Hispania, explained that the socimi is also looking at Portugal because it shares “many characteristics” with Spain’s tourism market.

According to Ms Garcia-Peri, Portugal has the same competitive advantages for Spanish tourists because, among other things, it is “safe” and has “attractive” prices, so the company intends to include some Portuguese assets among the REIT’s European holdings.

Original Story: Diário Imobiliário

Translation: Richard Turner