land Assets News: Portuguese Real Estate Intelligence

The State of the Portuguese Real Estate Market in December
January 3, 2022 Despite the current slowdown due to the festive season, the real estate market in Portugal has powered on, toasting the coming New Year with some of the biggest transactions and announcements of the year. December saw a series of deals, underscoring the strength, stability and resilience with which the market has faced the uncertainty of the last two years. The point was reinforced once again by further recognition of Portugal’s tourism industry, as the country won 12 awards in the 28th edition of the World Travel Awards 2021, the most well-known prize in the sector. The trophies, awarded since 1993, served to highlight Portugal’s dominance in several categories. Madeira stood out by receiving the “Best Island Destination in the World” award for the seventh consecutive year. At the same time, Parques de Sintra was named the “World’s Best Conservation Company,” a category in which it has taken awards for eight straight years. The Paiva Walkways were also considered the “Best Adventure Attraction” for the fourth year in a row, and Dark Sky Alqueva won the “Responsible Tourism” category. In other news, a decree was published in the Diário da República stating that the price per square metre for IMI taxation purposes will increase in 2022. The increase will be 25 euros compared to the price in 2021, rising to 640 euros, up by 4% compared to 2020. This update applies to all property valuations carried out from 1 January 2022. Residential In this sector, the Salgueiral Residences development announced that 90% of its more than 70 flats had already sold, in an investment of over 13 million euros. The condominium is located in the Guimarães city centre and boasts the highest standards of comfort coupled with state-of-the-art technology. Offices The Ageas Portugal Group acquired an office building in Lisbon. The operation represented the Group’s fourth acquisition in the real estate sector in 2021, which totals €100 million invested this year. In Sete Rios, Lisbon, the Bloom building has a gross above ground construction area of 5,500 m2. The amount of the investment was not revealed. Logistics Halfway through the month, Lidl Portugal inaugurated its first semi-automated logistics centre in a 73-million-euro investment. The supermarket chain’s next stop is in Santo Tirso, where it will continue to increase its bet on Portugal’s Northern region. The recent and most modern Lidl logistics centre is already operating at 100%, taking over the supply of its supermarkets in the north of Portugal. Located in Zona Industrial da Ermida, the warehouse occupies an area of 48,000 square metres and can supply more than 100 shops. The storage capacity is 55,000 pallets, and it has over 90 docks. Student Residences Also in early December, the Ageas Portugal Group, Promiris and Cetim signed an agreement to build a student residence in Porto. The investment amount was not revealed. Construction was scheduled to begin at the end of 2021, and the home is expected to open its doors during the summer of 2023. The 265-room purpose-built student residence, near the University of Porto’s Faculty of Engineering, will be managed by the French group Odalys. NPLs Nearing the end of the month and year, the Portuguese Securities Market Commission (CMVM) revealed that Novo Banco’s portfolio of non-performing loans, called the Harvey Project, was sold for €52.3 million. The portfolio, which had a value of 164.4 million euros last September, was sold to the Deva Capital Management Company fund and the Arrow Group’s AGG Capital. The completion of the transaction, under the agreed terms, is expected to impact the capital position and income statement of the bank led by António Ramalho. On the last day of the month, the CMVM also announced stated that Banco Montepio had sold a 253-million-euro non-performing loan portfolio. The acquisition of the assets, which includes 10,318 registered loan contracts, was carried out by LX Investments Partners III, BTL Ireland Acquisitions II Designated Activity Company and BTLP Acquisitions I Unipessoal, Lda. Alternative Assets Again at the end of the December, the French group Icade Santé announced that it had acquired three Lusíadas hospitals and HPA Saúde’s Hospital Privado S. Gonçalo for €213 million. The four assets comprise Fidelidade’s entire SaudeInveste fund and are the Icade Santé’s first investment in Portugal. The hospitals have a total area of 90,000 square metres and over 500 beds. The three Lusíadas properties are located in Lisbon, Porto and Albufeira, while the fourth property, Hospital Privado S. Gonçalo, is in Lagos.
Buildings Granted Municipal Licensing Up 0.9% in Q3 2021
December 15, 2021 – Ana Custódio Portugal’s northern and central regions continued to stand out regarding the number of completed buildings. According to the National Statistics Institute, 6,000 buildings were licensed in Q3 2021, up 0.9% compared to the same quarter last year (vs +29.5% in Q2 2021) and up 3.1% in Q3 2019. The number of buildings licensed for new construction increased by 3.8% (vs +30.2% in the 2nd quarter of 2021) and were up 8.1% compared to the 3rd quarter of 2019. According to the INE’s analysis, licensing for renovations fell by 6.3% (vs +26.3% in the 2nd quarter of 2021), corresponding to a decrease of 9.8% compared to the 3rd quarter of 2019. The number of completed buildings rose by 5.5% (vs +3.3% in the 2nd quarter of 2021), 7.8% more than in the 3rd quarter of 2019, totalling 3,900 buildings. Portugal’s national statistical agency also reported that the number of licensed buildings decreased by 8.9% q-o-q (-0.5% in Q2 2021), and the number of completed buildings grew by 4.1% (-0.4% in Q2 2021). Translation: Richard D K Turner
The State of the Portuguese Real Estate Market in November
December 2, 2021 - Ana Custódio The second to last month of the year saw a series of major transactions in Portugal’s property market. Every sector showed a huge volume of deals and the completion of operations. In November, the office and industry and logistics segments were the most active in announced transactions. Residential November was just beginning when the Belas Clube de Campo announced an investment of 30 million euros in townhouses and flats. The development will comprise 35 high-quality new apartments and 15 townhouses. They have been designed for various types of families or investors. They include a range of services and infrastructure, in an excellent location just a few minutes from the centre of Lisbon, Sintra and Cascais. At the end of the month, the Onires Group announced a new urban development project in Braga involving a €20-million investment. The Carvalhal Building promises to rejuvenate the historic centre of the city of Braga. The project includes a total of 60 flats with parking spaces and ten spaces for shops and services. It was designed by the Carvalho Araújo and Big Arquitetura, along with BO Associados. Offices The month started well for the office sector, in which some of the most significant deals of November were announced. A new office project called Allo will go up in Alcântara in a €125-million investment. Divided into two office buildings with similar characteristics, the ALLO project comprises a gross above ground construction area of approximately 39,000m2. The Alcântara Lisbon Offices were designed by the Saraiva Associados architectural studio and run by the management company Bedrock Capital Partners. Also at the beginning of the month, Norfin sold an office in the Greenpark Complex, in Lisbon, for more than 6 million euros to an international fund. The property near the Catholic University and Praça de Espanha consists of an approximately 2,400-m2 office with 60 parking spaces. Meanwhile, the former headquarters of the Somague building sold for more than eight million euros. The deal comes from a partnership between The Edge Group and the Ardma FCR fund. The office building located in Beloura, Sintra, was acquired by The Edge Group and is located next to the Beloura Business Park. The asset has around 7,500m2, 409 parking spaces, three floors and is set within a plot of land with 27,300m2 of total area. The asset also has a construction potential of 11,000m2, allowing for a future expansion. Retail The retailer Lidl announced that it would expand into the Autonomous Region of Madeira with an investment of €100 million. The first three shops are planned for 2023. Sustainability remains one of Lidl’s main focuses. The entry of the supermarket chain into Madeira also aims to boost the local economy, not only by establishing partnerships with local suppliers but also by recruiting employees. Industrial and Logistics The month began with one of the biggest transactions of the year in this sector, as Novo Banco announced that it had sold the former premises of Lisgráfica. Located in the Industrial Area of Queluz de Baixo, in the municipality of Oeiras, Lisgráfica is an industrial unit with approximately 48,000 square metres of gross construction area, set in a 105,000-square-metre plot of land. The value of the transaction and the identity of the buyer were not disclosed. Mid-month, Ar Telecom announced that it would invest 10 million euros in a new data centre in Lisbon. The company is looking to reinforce its fibre optic network and build a new 1,400-m2 data centre in Lisbon. The operator’s strategic repositioning envisages the creation of 200 direct and indirect jobs by 2025. Soon after came the news that Aquila Capital and GSE’s Green Logistics will build a 115,000 m2 project in Azambuja, Lisbon, one of Portugal’s logistics epicentres due to its road and sea connections.  The value of the investment was not disclosed. Azambuja Green Logistics Park is Aquila Capital’s first logistics investment in Portugal. The project is already under construction and is expected to be completed by the end of 2022. The building’s designers plan to obtain the BREEAM VERY GOOD certification. Hotels W Hotels Worldwide will debut in Portugal with a bold and dynamic hotel. The Hotel W Algarve will open its doors in the spring of 2022. W Hotels Worldwide, part of Marriott International, will launch the W Algarve, located on the Algarve’s iconic cliffs, less than 50 km from the Faro International Airport. The new unit will have 134 rooms and suites, as well as 83 residences. The value of the investment was not disclosed. Alternative Assets Tiko took a leap abroad, opening a new branch in Lisbon. The company is a Spanish proptech with an ambitious expansion plan for Europe which has chosen Lisbon as the company’s first international headquarters. The firm foresees an initial investment in Portugal of more than 30 million euros. Its innovative technology allows clients to sell their homes in record time. Also in the middle of the month, it became known that Discovery Land Company, a North American group, was investing 285 million euros in Melides. The amount is subject to the sale of properties in Costa Terra, a tourist development located in Melides, Grândola, in which the North Americans have made at least 285.7 million euros. The Discovery Land Company acquired the Galé Camping Park from Imobiliária Ilhas Atlânticas for €25 million in October.