#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.

The State of the Portuguese Real Estate Market in March

April 1, 2022

Closing out the first quarter of the year, March came loaded with news in Portugal’s real estate market. While, on the one hand, two years of the pandemic caused immense problems for the hospitality sector, there have since been a series of transactions and new projects. At the same time, the housing market saw the birth of several new projects in response to a shortage in the supply of homes.

Housing

On the first Monday of the month, the Fortera group announced the implementation of a new concept in all its new buildings, an investment which will eventually cost 500 million euros. Alive by Fortera will be the focus of an initial investment of around 115 million euros, with a global investment forecast of €500 million over five years, building 1000 new homes. This concept aims to revolutionise the way we live and think about housing.

Meanwhile, in Vila Nova de Gaia, the developers SPintos S.A. Group and Chave Nova – Mediação Imobiliária, Ltd. will build the residential development “Jardins da Seara,” with an investment of 100 million euros in approximately 700 flats. With the architectural project concluded, construction will begin mid-next month. The development will include ten lots in an area of about 70,000 m2 for aboveground housing, shops and services.

Also, at the beginning of the month, it was announced that the NOOBA would go up in Barreiro, in a potential investment of up to 130 million euros. With a total gross area of 98,360 m2, the real estate developer Solid Sentinel’s residential project will consist of 518 one-to-five bedroom flats, with prices starting at 189,000 euros.

Qriar City will also invest 70-million-euros in three buildings in Alta de Lisboa. The land in the capital has a buildable area of 25,655 square metres (m2), located next to Lisbon’s Parque Oeste. The group acquired the land from GAL – Sociedade Gestora at the end of February. A total of 148 new homes are planned for the area, including three buildings. A public tender for the construction, with expected costs of 45 million euros, will be launched in the first half of 2022, and it is estimated that work will begin in early 2023.

Further north, Bondstone announced the start of work on the GREENSTONE luxury development in Porto. The residential project located in Foz, Nevogilde, represents an investment of over 28 million euros and is being built by ACA – Engenharia & Construção. Construction is expected to be concluded by the end of 2023, with over 30% of the units already sold.

With the month nearing its end, the investment that stood out the most came to light, as SOLYD Property Developers stated that it would invest 260 million euros in a new project in Miraflores. The project has 426 residential units, 25,000 m2 of gross aboveground construction area for developing workspaces, and 23 commercial spaces. The new multi-purpose project, called MIREAR, includes five residential buildings, one office block and several shops with an excellent location in the heart of Miraflores.

Meanwhile, the Empril Group announced that it had acquired a 60,000 m2 plot of land in Vila Nova de Gaia. The 60,910-m2 property will be used for residential construction. The project results from an investment of over 30 million euros. It’s expected to solidify the Empril Group’s current leading position in the Vila Nova de Gaia market.

News was also released that the site of the former Favorita chocolate factory will give way to a new residential development. The site has an area of around 7,000 m2 and more than 9,000 m2 of potential gross construction area. Still under analysis by the Lisbon City Council, the project foresees the development of 90 flats with an investment of around 40 million euros. It also includes an area dedicated to retail and large areas of green spaces, both for private use by residents and for collective use. The asset’s sales price, which Gavepart – Imobiliário e Turismo S.A. sold, was not disclosed.

Offices

The office sector saw less movement in March, with one of the largest known transactions coming when Santander sold a building in Lisbon to Incus Capital. Located in the Praça de Espanha area, it was acquired by a fund managed by Incus Capital, a pan-European investment company based in Madrid with offices in Lisbon. According to market sources, the sales price was approximately 55 million euros. The property is an outstanding real estate asset in a central location, with a total area of over 24,000 m2 of space, including the main building and two independent blocks. The largest building has ten aboveground floors (11,657 m2) and three underground floors, including 296 parking spaces.

Logistics and Retail

Meanwhile, the logistics sector saw the sale of three warehouses in Porto Alto to Bedrock Capital and Europi Property, though the sales price was not revealed. The warehouses are located in the Porto Alto Industrial Park and have a total of approximately 40,000 m2 of gross construction area. The assets were owned by a real estate investment body and have now been acquired by a joint venture between Bedrock Capital Partners and Europi Property Group.

In retail, the supermarket chain Mercadona announced that it would open a supermarket in Guimarães, with a forecast investment of €150 million by 2022. The supermarket chain will reach five new districts, Viseu, Leiria, Santarém, Setúbal and Lisbon. The first of the ten new shops planned for 2022 in Portugal will open in Guimarães on April 5th. The new stores underscore Mercadona’s continuing interest and confidence in Portugal.

Hotels and Resorts

At the very beginning of the month, Coporgest announced a €116-million investment in a new resort in Troia/Comporta. The real estate developer is responsible for the new five-star tourist development on the Alentejo coast. The future resort will be built on land that Coporgest acquired from Sonae Capital in December 2020. The project should be completed in 2025, and sales of the villas and flats are planned to begin in mid-2023. The new resort includes a 5-star hotel with 58 rooms and suites, with two presidential suites, and an additional 38 villas and 91 tourist flats.

Again, further north, in Arcos de Valdevez, the Luna Hotels & Resorts Group is preparing to inaugurate the Hotel Solar de Requeijo. The total investment is expected to reach €4.1 million. The new facility, located in Arcos de Valdevez, comprises 27 rooms and suites. An agreement between the municipality and the Luna Hotels & Resorts Group facilitated the acquisition and subsequent rehabilitation of the vacant manor into a major new hotel for the region.

Also in early March, another major investment emerged, with Mercan Properties investing €187 million in three Marriott hotels. Mercan Properties signed an agreement with Marriott International to operate three hotels in Portugal. The hotel projects are in Lagos, Lisbon and Vila Nova de Gaia and will be managed by Ace Hospitality Management (AHM). They include the Marriott Lagos in the Algarve, the Moxy Alfragide Lisbon and The Riverview, a Tribute Portfolio Hotel located in Vila Nova de Gaia.

Meanwhile, part of the Hotel Intercontinental do Estoril was acquired by BPI Imofomento for €22 million. BPI acquired 62 of the building’s 88 flats from the Closed Real Estate Investment Fund Turístico II. The deal was finalised for 4.4 million euros, below the property’s last valuation of 26.3 million euros. The deal for the 62 units includes a 20-year lease contract. The hotel will continue to be managed by the Intercontinental group.

March was already half over when the opening of the Sé Catedral Hotel Porto was announced, following an investment of 23.8 million euros. Sé Catedral Hotel Porto, Tapestry Collection by Hilton, results from an urban rehabilitation project. The new 4-star hotel is Mercan Properties’ new investment in the centre of Porto. This is the first project under the Tapestry Collection brand, belonging to the international Hilton group, and will be managed by Ace Hospitality Management (AHM). Sé Catedral Hotel Porto has 77 rooms, a restaurant, bar and a café on the terrace overlooking Porto’s Sé Cathedral.

Still in the north, another hotel unit, the 1877 Estrela Palace, opened its doors in Aveiro. The new luxury hotel is in Porto’s historic centre and will be managed by Unlock Boutique Hotels, which also manages various units throughout the country. The 1877 Estrela Palace has nine luxurious rooms and suites in an ancient 17th-century manor. It’s considered a paean to luxury in the heart of Aveiro, with stunning views over the main channel of the great Ria de Aveiro.

Towards the end of the month, the Four Points by Sheraton Matosinhos opened its doors after an investment of 19.1 million euros. Located in the city centre and just five minutes from the beach, the new hotel has 108 rooms. It is the result of an urban rehabilitation project by Mercan Properties.

Also in Portugal’s north, Hoti Hoteis is betting on a new hotel in Braga. Hotel Plaza Central is scheduled to open in Easter 2024 and results from a 16-million-euro investment. The Hoti Hoteis Group will have 108 rooms, with a Portuguese inspiration in the design, decoration and materials. The new unit will also have a spa, outdoor and indoor pool, restaurant, bar, cloister and meeting rooms.

NPLs

The NPL (Non-Performing Loan) market saw a major transaction at the beginning of March. It was BCP’s turn to conclude the sale of its non-performing loan portfolio Project Lucia. Comprising non-performing loans with a nominal value of €60 million and real estate assets worth €50 million, the Lúcia portfolio was sold to LX Partners (in partnership with Cabot). Millennium BCP will also return to the market, continuing efforts to clean up its balance sheet.

#BrainsFlash

March 28, 2022

Last week’s highlight was Solyd’s €260-million investment in a new project in Miraflores.

After a relatively serene period week before last, the real estate market gained a new lease of life. With the end of the month approaching, the real estate market has picked up speed again. The most important news came from investments in the hotel sector, where new units in the north of Portugal were inaugurated.

Right at the beginning of the week, the inauguration of the Sé Catedral Hotel Porto was announced, in an investment of 23.8 million euros. Sé Catedral Hotel Porto, part of the Tapestry Collection by Hilton, results from an urban rehabilitation project. The new 4-star hotel unit is Mercan Properties’ new investment in the centre of Porto. This is the first project under the Tapestry Collection brand, which belongs to the international Hilton group in Portugal. The result of another Mercan Properties’ urban rehabilitation project, it will be managed by Ace Hospitality Management (AHM). Sé Catedral Hotel Porto has 77 rooms, a restaurant, a bar and a café on the terrace overlooking Porto’s Sé Cathedral.

Meanwhile, the sale of three logistics warehouses in Porto Alto to Bedrock Capital and Europi Property was announced in the logistics sector. The warehouses are located in the Porto Alto Industrial Park and total around 40,000 m2 of gross construction area. The assets were owned by a real estate investment firm and have now been acquired by a joint venture between Bedrock Capital Partners and Europi Property Group. The value of the transaction was not disclosed.

Meanwhile, another hotel unit was inaugurated in Aveiro after an undisclosed investment. The 1877 Estrela Palace, a new luxury hotel unit, is in the city’s historic centre, under the management of Unlock Boutique Hotels, responsible for managing various units throughout the country. The new hotel has nine luxurious rooms and suites. The building is an old 17th-century manor, considered an ode to luxury in the heart of Aveiro. It is in the historical centre and has stunning views of the main channel of the great Ria de Aveiro.

At the end of the week, the most significant investment of the week was revealed, as Solyd invested 260 million euros in a new project in Miraflores. The real estate developer, SOLYD Property Developers, has launched its latest urban project in Miraflores, called MIREAR. The project has 426 residential units, 25,000 m2 of above-ground gross construction area for the development of workspaces, and 23 commercial spaces. MIREAR is the new multi-purpose project that includes 5 residential buildings, 1 office block and shops, located in a premium area in the heart of Miraflores.

#BrainsFlash

The highlight of the week in Portugal’s real estate market was the sale of Project Lucia, a portfolio of non-performing loans.

The last two years have undoubtedly had a major impact on the tourism and the hospitality sectors, but they have nevertheless maintained their strength faced with such adversity. Proof of that came again last week in the form of important announcements regarding significant investments in hotels and resorts.

The NPL (Non-Performing Loan) market also saw a major deal, announced at the end of the week. BCP finalised the sale of the non-performing loan portfolio Project Lucia. The Lúcia portfolio, comprising non-performing loans with a nominal value of €60 million and real estate assets worth €50 million, was sold to LX Partners in partnership with Cabot. Millennium BCP will continue its efforts to clean up its balance sheet.

The week was starting when Coporgest announced a €116 million investment in a new resort in Troia/Comporta. The real estate developer will build the new five-star tourist development on the Alentejo coast on land that Coporgest acquired from Sonae Capital in December 2020. The project should be completed in 2025, and pre-sales of the various villas and flats are scheduled to begin in mid-2023. The new resort includes a 5-star hotel with 58 rooms and suites, including two presidential suites, 38 villas and 91 tourist flats. The resort will be situated close to the beach, and every unit will have sea views.

Further north, in Arcos de Valdevez, the Luna Hotels & Resorts Group is preparing to inaugurate the Hotel Solar de Requeijo. In a global investment totalling 4.1 million euros, the new hotel comprises 27 rooms and suites. A deal between the municipality and the Luna Hotels & Resorts Group facilitated the acquisition and conversion of the vacant manor house into a hotel, whose inauguration is imminent.

Another important investment emerged at the end of the week, with Mercan Properties investing €187 million in three Marriott hotels. Mercan Properties has signed an agreement with Marriott International to operate three hotels in Portugal. The hotel projects are located in Lagos, Lisbon and Vila Nova de Gaia. Management will be handled by Ace Hospitality Management (AHM). They are the Marriott Lagos, in the Algarve, the Moxy Alfragide Lisbon and The Riverview, a Tribute Portfolio Hotel, located in Vila Nova de Gaia.

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.

#BrainsFlash

The week started with a quiet Valentine’s Day regarding transactions in the real estate market’s various sectors. However, things picked up after that, making news daily.

February 22, 2022 – Ana Custódio

The highlight of last week was Aldi’s €50-million investment in a logistics platform in Santo Tirso.

The week started with a quiet Valentine’s Day regarding transactions in the real estate market’s various sectors. However, things picked up after that, making news daily.

On Tuesday, reports came out regarding the development of a state-of-the-art office complex in Porto by Sonae Sierra and the Ferreira Group. Through an equal partnership, the project benefits from an excellent location, good highway access, an excellent public transportation network, private parking, and outdoor green spaces. The office complex will have a contemporary architecture designed by Broadway Malyan, emphasising flexibility, innovation and sustainability, prioritising quality, comfort and people’s well-being.

Meanwhile, the Vila Galé Group announced an investment of 12 million euros to convert a former hospital into a hotel. Construction is expected to begin in March, with completion in the summer of 2023. The hotel chain is arriving in the Azores by way of a partnership with Santa Casa da Misericórdia de Ponta Delgada. In what will be the second-largest Portuguese hotel group’s debut in the Azores, Vila Galé will have in a little over a year a hotel in S. Miguel, which will have 93 rooms, a restaurant and four stars.

In the logistics sector, the German supermarket chain Aldi Aldi announced an investment of 50 million euros in a logistics platform in Santo Tirso. Construction is expected to start in March, and the facility should be operational by mid-2024. The project will be built in Área Empresarial da Ermida, which corresponds to the Quinta da Chinesa. The logistics platform will occupy an area of 160,000 square metres, with 40,000 square metres of constructed surface area.

Last but not least, given that the residential still leads when it comes to the generation of new projects, a new condominium to be built in the Old Prado Factory in Matosinhos. The old sardine cannery, which closed down 20 years ago, will be completely refurbished and converted into 30 1-5 bedroom flats, just 200 metres from the beach. The development is located on one of the city’s main avenues and marketing is the responsibility of JLL and Predibisa. The value of the investment was not disclosed.

Translation: Richard D K Turner

New Public Works Tenders Down by 21% in 2021

February 2, 2022 – Ana Custódio

The total number of public works tenders in Portugal reached 3.825 billion euros last year.

According to a report today, the Public Works Barometer, by AICCOPN (Association of Civil Construction and Public Works Industries), public works tenders executed throughout the year 2021 totalled 3.825 billion euros. The figure represents a drop of 21% compared to the previous year.

AICCOPN explained that this reduction is primarily because there was a significant number of public works tenders worth €80 million or more in 2020, related to planned investments in the railway and metro network, which totalled €1.126 billion that year.

Contracts concluded and reported in the Base Portal under public tenders in 2021 amounted to €2.713 billion, an 8% decrease y-o-y. Throughout 2021, public works contracts concluded as a result of Direct Adjustments and Prior Consultations totalled 584 million euros, up 2% year-on-year.

Read the full article in Portuguese

Translation: Richard D K Turner

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.

Aquila Capital Announces its First Logistics Fund in Southern Europe

January 19, 2022 – Brainsre.news

The fund is looking to raise 1.5 billion euros.

In a press release published on its website, Aquila Capital announced that it was launching its first logistics investment fund in southern Europe, including Portugal. Aquila Capital Southern European Logistics (ACSEL) has a target investment volume of 1.5 billion euros with a maximum debt-to-equity ratio (LTV) of 50%.

ACSEL launches with a committed capital volume of €330 million raised from international institutional investors, including SCI Primonial Capimmo. The open-ended fund has a pipeline of nine newly built assets located in Italy, Spain and Portugal and expects to raise “first close” capital within 18 months.

The first investment has already been approved, a 115,000 m2 logistics asset in Azambuja, a strategic and central logistics centre in the Lisbon metropolitan area. 70% of the asset has been pre-let to a blue-chip tenant with a 20-year lease term.

“The fund will focus on modern, energy-efficient logistics properties that are built and operated to the highest standards of energy efficiency and environmental protection, and that create added value by combining sustainability, attractive lease terms and strategic locations,” Aquila stated on its website.

“Selection criteria include proximity to transport hubs to minimise transport-related carbon emissions and sustainable building standards that include BREEAM certification, installation of rooftop photovoltaic panels and offsetting CO2 emissions.”

Roman Rosslenbroich, CEO and co-founder of Aquila Capital, added, “We see a growing interest among institutional investors in sustainable real estate assets, including logistics centres. The Aquila Capital Southern European Logistics fund is a response to this demand, focusing on the southern European markets where we still see many opportunities due to the need for modern, large-scale warehouse space. Our investors will benefit from our long-standing real estate experience – a total transaction volume of €2.6 billion covering a total area of over 1,800,000 square metres – as well as early market entry advantages due to our local teams. This real estate sector matches the strategies of investors and tenants, who consider all ESG criteria, for all sustainability, as a fundamental and necessary value to contribute to the global energy transition.”

Translation: Richard D K Turner