#Brainsflash – Highlights in the past week were a portfolio of properties valued at more than 400 million euros that entered the market through the hands of Novo Banco

January, 17, 2023

At the beginning of the week, the opening of the first Dior store in Portugal has been made public. Alegria One, a rehabilitation project by the promoter and real estate manager EastBanc, was the space chosen by the legendary Parisian fashion brand to open its first store in the country. The store located on Avenida da Liberdade, in Lisbon, will open its doors this year occupying three storeys of the building, in a total area of 1,050m2.

Meanwhile, the building Lisboa, in Parque das Nações, has been sold by an MCAP Global Finance fund and acquired by the Banco Comercial Português pension fund. The value of the transaction has not been disclosed.

Further north, Gondomar will host a luxury real estate and tourist project in an investment of 85 million euros. The Porto Douro Marina Hotels & Villas, located on the banks of the Douro River, includes the construction of a five-star hotel, 90 villas, a marina and even a heliport. The works should be completed in the first half of 2023, and the construction of the hotel and villas will be carried out over the course of 36 months.

Soon after, there was the announcement that the Zara Store, on Rua Augusta in Lisbon, has been sold in the biggest transaction of a single high street retail space in Portugal. Deka Immobilien proceeded with the sale of the asset whose new owner is a subsidiary of NEXT FCR, a Venture Capital fund managed by STAG and counselled by Optylon Krea. The value of the transaction has not been revealed, but it is known that it was around 20 million euros.

The following day, it became public that a foreign investor had acquired land at Herdade da Aroeira for a residential and tourist project. The project foresees the construction of around 29,000m2 above ground: 247 units – 210 for tourist use and 37 for residential use, including an aparthotel with around 150 units. Neither the investment amount nor the buyer have been revealed.

Meanwhile, the largest portfolio of supermarkets in Portugal is going to be acquired for 150 million euros. The US private equity fund LCN Capital Partners will acquire the so-called “Project Amália”, which comprises 50 assets. The transaction, which will be closed with the German Trei of the Tengelman Group, encompasses 50 assets, in a total area of 68,196m2.

Finally, with the week ending, a portfolio of properties valued at more than 400 million euros will enter the market. The property portfolio will be placed on the market by Novobanco, also including the Cabanas Golf development, a building in Olivais Sul, land in Portimão and the tourist project in Benagil, in the municipality of Lagoa. Similarly, the portfolio includes around 94% of the investment units of the fund that owns the land in Amoreiras, in Lisbon, with an area of 130,000m2, which the institution inherited from Banco Espírito Santo.

#Brainsflash

October, 3, 2022

The last days of September proved it to be a week of major investments and news, in the real estate market. On the one hand we have had major developments in the office segment; on the other hand we have also had relevant news in the NPL’s market, with BPI selling a portfolio of 140 million euros to funds managed by LX Investment Partners.

At the beginning of the week, a society for the construction of a new office building in Campo Grande has been sold. The funds managed by Blackstone worked together with Multi Corporation in the transaction aimed at the construction of a new office building in Lisbon. Next to the transport terminal between the Alvalade XXI Stadium and the NOS headquarters building, the project allows for the construction of a new office building with over 14.000m2.

Meanwhile, Norfin has launched the “Oriente Green Campus” office building. The construction should be completed during the second half of 2023 and promises to bring a new impetus to the north area of Parque das Nações. The building is located in Moscavide and will have a total office area of 41,100 m2 as well as 18,700 m2 of outdoor areas. The announcement has been  made by Norfin, one of the national references in the management of real estate investments, on behalf of the Fundo Multiusos Oriente FEIIF, held by the Orion European Real Estate Funds.

With the week approaching its middle, Maya Capital launches its first real estate project in Lisbon. Eligible for the Golden Visa, Conceição 123 is located in a premium location in the city. The real estate investment fund entered the Portuguese market with an investment of 65 million in residential assets and debuts with this income tourism project.

Mercan Properties also emerged in the spotlight with the acquisition of properties for a new hotel in Faro. The assets will be subject to a rehabilitation and real estate development project, which will bring new life to that space. With a gross construction area of approximately 6.500m², these properties are a unique opportunity to promote a new project in the Algarve. The investment value has not been revealed.

With the week coming to an end, BPI has informed that it has concluded the sale of the Citron Project, with a total gross value of around 140 million euros, to funds managed by LX Investment Partners S.A.R.L.. The Citron Project comprises around 15.000 credit agreements of around 5.000 customers. The non-performing loan portfolio, referring to the Citron Project, includes positions with and without real mortgage guarantees, with a total gross value of around 140 million euros.

Finally, Henderson Park is making an investment of 25 million euros to modernize Lagoas Park. The private equity real estate company announces an investment of 25 million euros for the renovation of the most prominent business park in Portugal and the largest in the Iberian Peninsula. The ambitious modernization project will enhance indoor and outdoor areas as well as collaborative spaces. The business park has been the destination of choice for the national headquarters of companies of international importance.

 

#Brainsflash

August, 29, 2022

Coming to its end, this last week of August showed once more the existing robustness of the real estate market. Several segments, all over the country, were the target of significant investments and transactions.

At the beginning of the week, the Tagar Group announced the investment of 28 million euros to set up the Espinho Business Centre. The asset will be the first equipment in the municipality to present spaces ready for immediate occupancy by companies of the industrial sector, service brands and liberal professionals. The Espinho Business Centre will be installed in an area of 58.000 square meters, 23.000 of which are of covered area for various sectors of activity – of these, 11.000 are already in the contracting phase.

Meanwhile, Mealhada has approved the Local Housing Strategy in an investment of 68 million euros. The City Council unanimously approved the Local Housing Strategy in a meeting of the Municipal Executive, which foresees the intervention in several social housing neighbourhoods, the construction of housing and the support, to individuals, for the recovery of degraded houses intended for rent at controlled costs.

At the beginning of the week, Parvalorem was known to have resumed the sale of a property portfolio worth 250 million euros. Two years after the Ministry of Finance blocked this transaction, Parvalorem, which manages the problematic assets of the bankrupt BPN, resumed the process of selling a real estate fund, valued at just over 255 million euros.

Meanwhile, a shut down hotel in Viana do Castelo reopens after works worth 10 million euros. After being closed for 16 years, the Viana Sol hotel reopens in February 2023, after being refurbished as a themed hotel. The hotel will change its name to Dona Aninhas.

At the end of the week, Aldi opened a new store in Palmela. It is in the parish of Quinta do Anjo that the food retailer has opened its 111th store in Portugal, continuing its expansion plan. The new store offers a total sales area of 1.000 m2. With no investment value revealed, the company thus owns 15 stores in the district of Setúbal.

 

#Brainsflash

August, 22, 2022

With the month of August still halfway through, this last week proved to be a period of numerous announcements, major transactions and investments to be noted in the various segments of the real estate market.

Of note was the sale of the Novo Banco headquarters for 112.2 million euros and the final agreement between the banks and Davidson Kempner Partners (DK Partners) for the sale of ECS funds for 850 million euros, at the end of the week.

Right at the beginning of the week, it became public that the headquarters of Novo Banco was sold for 112.2 million euros. Novo Banco, S.A. informed in a statement sent to the Portuguese Securities Market Commission (CMVM) the signing of a Contract of promise to sell and buy regarding the present headquarters building of Novo Banco, S.A., located on Avenida da Liberdade in Lisbon. The sale should be concluded in the 3rd quarter of 2022. The Novo Banco Campus in Tagus Park – Oeiras, currently under construction, will be the new headquarters of the Bank and of the group’s companies.

Meanwhile, Matosinhos announces the investment of 85 million euros in housing until 2026. The Municipality of Matosinhos and Matosinhos Habit are working on an investment plan in the construction and requalification of social housing, in the supported rent and in the municipal program to support the rent. The announced investment foresees the rehabilitation of 400 vacant municipal social housing, as well as the construction of 384 new housing.

With the week almost over, The Fontecruz Lisboa Hotel was sold for 42 million euros by the Spanish chain Fontecruz Hotels. The new owner of the hotel is Carlos Camurdine, one of the biggest entrepreneurs in Mozambique. Opened in 2012, the five-star hotel was the international debut of the Fontecruz Hotels chain and has an offer of 72 rooms. It will change its name soon and the new owners already have a new project for the space.

The logistics segment also stood out with Carnes Campicarn, S.A., a national company in the beef industry, purchasing two factories in Torres Novas, in the district of Santarém, from a company of the Patris Group. With no investment value revealed so far, this is an operation that is part of Campicar’s growth plan, based in Vila Nova de Famalicão. The two industrial assets, with a covered area of around 11,000 m2, have an excellent location in the centre of the country, specifically in the industrial and logistics area of Zibreira.

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

 

 

 

The State of the Portuguese Real Estate Market in June

Rounding out the first semester of the year, May brought a slew of announcements in the real estate market and new investments all over Portugal. There were deals in every market sector, with the principal emphasis on housing and hotels. If, on the one hand, bets on the Portuguese residential market are considered safe and profitable, on the other, and despite two years in which the tourist sector was almost stagnant, the hotel segment is now emerging and proving to be increasingly resilient in the face of past and present adversity. It should be noted that although the pandemic is lessening in its effects, Russia’s invasion of Ukraine has triggered a series of economic effects, adding to sector restraints. But the fact that Portugal is far from the conflict and has an enviable location in the south of Europe brings with its hopes of a rapid recovery of its tourism sector, especially in hospitality.

Residential

In May, doValue announced the launch of a new luxury development in Funchal, the capital of the Madeiran archipelago. The Casas Brancas development comprises 11 villas and is located in a tourist area in the parish of São Martinho, Funchal. The project is set on a rectangular geometrical plot of 3,322 square meters. The villas are arranged on three levels, enabling every flat to have south-facing balconies and terraces with excellent sun exposures and sea views.

Meanwhile, a project to develop 400 flats in an investment of 16.25 million euros was announced. The new residential project has the potential to build over 50,000 m2, located next to the Marina de Lagos in the Algarve. Marina Park II has an approved PIP with the potential to build around 400 residential units and retail assets. The project represents an excellent opportunity to boost the supply of homes in the Algarvian city. It foresees a total construction area of over 51,000 m2, of which 49,520 m2 is distributed over 16 plots for residential development, along with 1,600 m2 for retail.

It was only halfway through the month when the São João da Praça appeared, the new residential project in Alfama with prices ranging between 500,000 and 1,040,000 euros. The project is next to the Sé de Lisboa. It comes from the rehabilitation of a 9-flat Pombaline building in Alfama, bringing modern flats, one and two-bedroom homes, to this traditional neighbourhood, with two duplexes on the top floor. The flats’ surface areas vary between 60 m² and 124 m². Construction began in April, and delivery of the flats is scheduled for the last quarter of 2023.

News was released at the end of the month that the Pestana Group had inaugurated the Madeira Acqua Residences in a €100-million investment. The Madeira Acqua Residences results from the refurbishment of the Madeira Palácio Hotel and has 181 flats, ranging from 1 to 4 bedrooms and penthouses. Madeira Acqua Residences has over 7,000-m2 of gardens, direct private access to the beach and an infinity pool on the cliff’s edge, immediately overlooking the sea.

Offices

The highlight for this sector was the sale of a building on Avenida de Berna for €15 million. Cofidis and Prosegur currently occupy the building. The property, located at 54 Avenida de Berna in Lisbon, was acquired by a Portuguese institutional investor from Tristan Capital Partners’ CCP 5 fund. The building has a gross area of 3,825 m2 and 124 parking spaces, located opposite the Calouste Gulbenkian Foundation. The property is between Campo Pequeno and Praça de Espanha.

At the end of the month, CORUM Eurion announced the acquisition of a building in Porto for 16 million euros. Owned by the French management company Corum Asset Management, CORUM Eurion bought the building in the business centre on Rua do Heroísmo in Porto. The building was completely refurbished in 2021, has 6,072 square metres of surface area, and has tenants such as the tech companies Infraspeak, Koerber and Sitel.

Retail

At the beginning of the month, Mercadona opened a new shop in Póvoa de Varzim. With a sales area of 1,900 m2, it is the chain’s 31st supermarket in Portugal and the first in this city. It is on Rua Comendador Francisco Quintas, in Póvoa de Varzim, though no investment amount was revealed.

Meanwhile, Auchan has invested around €40 million in a new shop in Cascais. The old Pão de Açúcar shop, the first supermarket to open in the country 49 years ago, has been renovated. The store will have an area of around 7,000-m2, a garden at one of the entrances, a rooftop on top of the shop with sea views and a shopping gallery with several restaurants.

Hotels

A major announcement came in this sector, as Discovery Hotel Management launched Octant Hotels. DHM announced that the group’s new brand would group and manage the eight hotels owned by the Discovery Portugal Fund in Portugal, called Octant Hotels. DHM’s portfolio includes a unique set of boutique hotels throughout the country, which will become part of the Octant Hotels brand.  The hotels include the Douro41 Hotel & Spa, the Palácio da Lousã Boutique Hotel, Évora Farm Hotel & Spa, Santiago Hotel Cooking & Nature, Praia Verde Boutique Hotel, Vila Monte Farm House, the Azor Hotel and Furnas Boutique Hotel.

Meanwhile, Azora acquired the Pestana Blue Alvor in the Algarve. Built in 2019, the Pestana Blue Alvor boasts 120,000 square metres of surface area and almost 500 rooms. The asset is Azora’s fourth investment in Portugal, following its acquisition of the Tivoli Marina Vilamoura resort, the Tivoli Carvoeiro resort and the Vilalara Thalassa Resort. The acquisition was completed through its Azora European Hotel & Lodging fund. Azora finalised its purchase of the Pestana Blue Alvor, though its investment was not revealed.

Mid-month saw the emergence of the Herdade Monteverde, a new residential tourist resort on Lisbon’s south bank. Located in a 102-hectare nature reserve, Herdade Monteverde will have 355 residential units, including detached villas, townhouses, and flats. In partnership with the SIL Group, HomeLovers is now exploring the new project after the success of the Herdade da Aroeira. It is a tourist residential development, so that it may be eligible for golden visa buyers. Prices for detached villas start at 740,000 euros, with townhouses beginning at 420,000 euros.

Next, Sonae Capital announced the sale of the Aqualuz Tróia Mar & Rio and The Editory By The Sea Tróia-Comporta. Sonae Capital’s Hospitality business unit will keep the management of The Editory Hotels, totalling 377 accommodation units. The sale was one of the largest real estate deals in hotels carried out in the Portuguese market since the beginning of the year, though the value of the transaction was not disclosed.

Towards the end of the month, Sonae Capital opened a new luxury hotel in Porto, investing around 20 million euros. The Editory Boulevard Aliados Porto Hotel is the new five-star hotel in Aliado, with 68 rooms. The Editory Boulevard Aliados Porto Hotel is a new space in the heart of Porto, offering nearly seven dozen rooms, a heated outdoor pool, two meeting rooms, a sensorial restaurant and a cocktail bar. The hotel is the result of a partnership between FVC Group and SC Hospitality, with the architecture and the interior design designed by Ding Dong.

NPLs

Near the end of the month, Novo Banco announced the sale of a portfolio of logistics properties. The deal’s completion is expected to positively impact around 35 basis points on the Novo banco group’s total capital ratio. The buyer’s identity and the investment value of the logistics properties located in Portugal were not released. The portfolio of real estate assets was held mainly by the real estate funds NB Património and NB Logística, both managed by GNB Real Estate. Novo Banco held a 75% stake in the real estate assets in March 2022.

Alternative Assets

In the north of the country, Supera announced an investment of €10 million in Gaia. Supera already operates two sports centres in Portugal and has seven other projects underway in Portugal. The Spanish group will build a swimming complex in Gaia, having gained 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 gyms brand, has 45 gyms in Spain and two in Portugal. The brand also has other projects underway in Portugal, in Braga, Porto, Coimbra, Seixal, Barreiro and Lisbon.

Later last month, a new campus of the British School of Lisbon was announced due to a 30-million-euro investment. The second campus, with 7,000-m2, 30 classrooms, a swimming pool complex and a sports pavilion, will be located on land adjacent to the Belenenses stadium. Following an agreement with Belenenses Football Club, the British School of Lisbon plans to open its second campus in Lisbon. The space will be built on land located above the main stadium.

#Brainsflash

May 30, 20222

The Pestana Group has inaugurated the Madeira Acqua Residences after an investment of 100 million euros.

With summer coming, these last days of May began to heat up, and the same applied to the real estate market, which was particularly fervent during the last week. Real estate investments were particularly dynamic across the board.

The week was beginning when Novo Banco announced the sale of a portfolio of logistics properties. The deal’s completion is expected to have a positive impact of around 35 basis points on the Novo Banco group’s total capital ratio. The buyer’s identity and the amount of the sale of the logistics properties located in Portugal were not released. At stake are real estate assets held mainly by the real estate funds NB Património and NB Logística, both managed by GNB Real Estate. On average, Novo banco held around 75% of the said real estate assets in March 2022.

Meanwhile, Sonae Capital opened a luxury hotel in Porto after an investment of around 20 million euros. The 68-room Editory Boulevard Aliados Porto Hotel is the latest five-star hotel to open in Aliados. The Editory Boulevard Aliados Porto Hotel is in the heart of the city of Porto. It offers nearly seventy rooms, a heated outdoor swimming pool, two meeting rooms, a sensorial provocation restaurant and a cocktail bar. The hotel results from a partnership between FVC Group and SC Hospitality, with an architecture and interior design project designed by Ding Dong.

The week was still in its early stages when a new British School of Lisbon campus was revealed, resulting from a €30 million investment. The second campus, measuring 7,000-m2s, has 30 classrooms, a swimming pool complex and sports pavilion and will be located on land adjacent to the Belenenses stadium. Following an agreement with the Belenenses Football Club, the British School of Lisbon plans to open its second campus in Lisbon. The space will be built on land located just above the main stadium.

As the week was ending, it became public that the Pestana Group had inaugurated the Madeira Acqua Residences after an investment of 100 million euros. Madeira Acqua Residences results from the refurbishment of the Madeira Palácio Hotel and has 181 flats with one to four bedrooms and penthouses. More than 60% of the units have already been sold. Madeira Acqua Residences has over seven thousand square meters of green area, direct private access to the beach and an infinity pool on the edge of the cliff, immediately overlooking the sea. The real estate project located in Madeira, also offers a gym, swimming pool, relaxation, social and work areas, and parking for residents and visitors.

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

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.

Montepio Prepares Sale of Bad Debt and Real Estate Portfolio

The NPL portfolio is worth around €1.4 billion, but the bank is expected to initially sell a portfolio of €500 million. The big players in the market have not been invited to participate.

February 2, 2022 – Ana Custódio

Banco Montepio has given the Japanese investment bank Nomura a mandate to lead the sale.

Banco Montepio and Nomura are already preparing the sale of a non-performing loan (NPL) and real estate portfolio. The portfolio is worth a combined 1.4 billion euros, although only €500 million is expected to leave the bank initially, the Portuguese daily newspaper Jornal Económico reported. According to the article, the market’s major players were not invited to participate. The operation is led by Japanese investment bank Nomura via its London branch. Nomura will be presenting the assets to a restricted group of investors.

After a period of quiet due to the pandemic, the market in Portugal for non-performing loan portfolios accelerated in 2021, and the same is expected this year. Sales are expected to be brisk.

The big buyers of defaulted asset portfolios, such as Davidson Kempner Capital Management, Bain Capital and Arrow Global, have not been invited to participate, idealista/news reported.

Read the full article in Portuguese

Translation: Richard D K Turner