industrial Market News: Portuguese Real Estate Intelligence

Goldman Sachs With €1-Billion to Invest in Logistics on the Iberian Peninsula
October 22, 2021 – Ana Custódio The US bank wants to invest in warehouses in Portugal and Spain. According to a report published by Cinco Dias, the North American bank has announced that it will invest one billion euros in building warehouses in Portugal and Spain over the next three years. Goldman created the Newdock brand for this purpose. Goldman Sachs Asset Management will invest through its real estate department. The recently created Newdock has been operating since the beginning of the year and already has a portfolio of seven logistics for development in Spain, with a total gross leasable area of 500,000 square metres. According to the publication, the initial investment in the portfolio would amount to 400 million euros. Although there is the intention to invest in Portugal, there is no specific information on any specific projects. Newdock intends to build facilities for operators with more specific needs and will also develop turnkey projects. Quoted in Cinco Dias, Javier Solís of Goldman Sachs explained that Newdock was created to accompany major national and international operators, responding to their logistics needs in the Iberian Peninsula. "We believe that the market will be increasingly demanding in terms of quality standards, efficiency and sustainability of logistics assets." Translation: Richard D K Turner
Repsol Invests 657 Million Euros in the Sines Industrial Complex
October 15, 2021 – Ana Custódio Repsol signed a 657 million euro investment contract with the Portuguese government in a ceremony chaired by the Prime Minister, António Costa, and attended by the Minister of State, Economy and Digital Transition Pedro Siza Vieira. Repsol Chairman Antonio Brufau, in his speech, noted that "industry and technology are two essential advances for the competitiveness of a country's economy." He also highlighted that "private initiative and public policies must work together in the best possible way for an energy transition compatible with economic competitiveness and emission reduction." The government considered Repsol's project for the Sines Industrial Complex to be of potential national interest (PIN), extending tax incentives worth up to 63 million euros. Based on this contract, the energy company will invest 657 million euros in expanding its Sines Industrial Complex, aligning with the objectives of the Paris Agreement and the energy transition. In a statement on its website, Repsol says that the industrial investment, which "is the largest in the last ten years in Portugal and will improve the country's trade balance", includes the construction of two polymer plants, each with a capacity of 300,000 tons per year, with 100% recyclable products. The technologies of both plants, which are expected to be completed by 2025, guarantee maximum energy efficiency, are market leaders and the first of their kind to be installed on the Iberian Peninsula. They will also contribute to the integration and diversification of Repsol's industrial area and its leadership in Europe. Translation: Richard D K Turner
The State of the Portugal Real Estate Market in September
In the month that wraps up the summer and the third quarter of the year, investment was robust, mainly in the residential sector. Housing saw the lion’s share of activity throughout the month of September. In parallel with August, which witnessed significant transactions at the beginning of September, with a clear focus on tourism, the Quinta do Lago Sul Golf Course reopened after a 7-million-euro investment. The largest luxury resort in the Algarve, which has been at the forefront of elite golf destinations, has finally reopened to the public after a thorough modernisation. Near the end of September, Fercopor announced that it would launch nine projects in a 190-million-euro investment. The luxury real estate company expects to complete the projects by the end of 2022. Plans include more than 200 luxury homes and a 17-storey office building, focusing on Avenida da Boavista (Porto), Vila do Conde and Lisbon.  Two projects are under construction, and another seven will begin marketing between this year and next. Residential It was just at the beginning of the month when Mexto announced that it would invest €20 million in the Portuguese market by the end of the year. The Swiss real estate developer intends to strengthen its presence in Portugal by investing in second-home projects on the coast south of the capital. Mexto, a specialist in luxury rehabilitation, continues to bet heavily on the Portuguese residential market and plans to invest another €20 million next year. Rio Capital also announced an investment of 8 million euros in the interior of the country. The developer is betting on projects outside Lisbon and Porto and recently announced a new real estate investment. Details of the project in Portalegre will be announced in the coming months. Relying on the agility of the local city council for the necessary approvals, Rio Capital expects to start construction and pre-sales early next year, with completion expected by mid-2023. Meanwhile, INVARIA announced that it had boosted its housing stock by acquiring a PIP-approved plot of land in Lisbon. The deal will allow the Spanish group to bring another 220 flats to the residential market. INVARIA has a developed plot located in Ameixoeira for residential use for sale.  The project also has the approval to convert one of the plots into a student residence. The project, with no revealed values, will consist of 6 distinct plots. With the end of September in sight, the real estate investment fund Maya Capital announced its entry in Portugal via a 65-million-euro investment in residential assets. This is the fund’s Iberian platform’s first deal. The assets include seven buildings located in prime areas of Lisbon, which the company plans to redevelop. The mainly residential portfolio is located in four parishes of Lisbon: Misericórdia, Santo António, Santa Maria Maior and Avenidas Novas. Retirement Homes During the second half of the month, Thor Spain announced that it had begun operations in Portugal, with plans to develop three retirement homes in an investment of more than 30 million euros. The residences, which have 120 beds each, will be located in Setúbal, Guimarães and Algarve. Each project involves an investment of between 10 million and 14 million euros. Thor had previously announced its intention to expand its operations to the Portuguese market. Logistics CORUM announced its acquisition of Nobre’s logistics centre in Rio Maior for an undisclosed amount. The asset has around 9,500 square metres and is the centre of operations for the storage, logistics and distribution of Nobre’s production for Portugal and international markets. Hotels On the last day of the month, Mercan Properties announced the inauguration of the “Casa das Lérias” Hotel after an investment of 7 million euros. Located at the beginning of one of the main thoroughfares in the centre of Amarante, the new hotel offers comfort and elegance on the banks of the river Tâmega. The avant-garde building provides an ample exterior space and a harmonious and relaxed interior, ideal for those looking for a service with modern amenities. Casa das Lérias has 23 rooms, including Deluxe, Duplex, Single and Superior. Alternative Assets The pan-Mediterranean real estate development and investment management company, OptylonKrea, has launched a €150 million fund. OptylonKrea was named General Partner of the venture capital firm Stag Fund Management to launch the new fund. The Prima Europe Fund is aimed at investors seeking to benefit from the Residence Permit for Investment Activity (ARI) regime, the so-called ‘Gold Visas’, by investing in Prima Collection branded residences.