offices Market News: Spanish Real Estate Intelligence

Study by EY Foresees 2-Year Impact on Real Estate Sector by Covid-19
23 June 2020 A survey carried out last month by the consultancy EY, predicts that the economic damage wreaked by Covid-19 will last 24 months. While market commentators and pundits have been speculating about the impact of the coronavirus, EY’s Real Estate team carried out an extensive survey of 300 real estate professionals from different sectors of the real estate industry in Portugal. The general conclusion has been that the government measures to protect the economy and prevent a future crisis will largely determine how the effects of the current pandemic play out in the near-to-medium term. Most of the study’s respondents believe that while confidence is sure to suffer a slight hit, investment plans are likely to undergo a temporary suspension. Half of the respondents expect a crisis in the sector, but think that it will last no longer than 12 months. Those same respondents believe that the industry will regain the highs of 2019 will within two years. Demand in the residential segment is forecast to fall by 40%, while prices should decrease by 20% over the next six months., with an eventual rebound over the next 24 months.  The luxury segment, primarily sustained by foreign investors, is likely to escape much of the expected impact. The demand for offices is also expected to drop by 20%, again with a recovery over the next 24 months. Prices, however, will decrease by a lower amount, 10%. The pandemic’s effect on the retail segment, though, is likely to be more severe. The logistics and industrial segments are forecast to undergo a period of adjustment to the new reality. The pandemic revealed weaknesses in supply chains which have strengthened the existing movement to focus on last-mile solutions. The logistics sector, in particular, is likely to benefit from an increased focus on e-commerce and faltering sales at retail shops. Possibly one of the worst-hit sectors will be that of tourist accommodations. Demand is likely to fall by 40%, with a 30% decrease in asset values, a 50% decrease in RevPAR and a deeper downturn over the next 24 months. Original Story: Jornal Económico - João Moura, Head of Real Estate, Hospitality, Construction & Infrastructure EY, Transaction Advisory Services Translation/Summary: Richard D. Turner  
Nelson Quintas Group to Build Offices and Parking in Porto
18 June 2020 The Nelson Quintas group, which owns a portfolio of tourism, services and leisure assets in Greater Porto, will invest approximately €12.5 million in the construction of two buildings in the Porto Business Area (ZEP). The new development will consist of offices, parking and shops. The architectural studio of José Carlos Cruz is designing the project, which will go up at the intersection of Rua Manuel Pinto Azevedo and Avenida Antunes Guimarães. The building, which has 2,600 square meters of Gross Leasable Area (GLA), is composed of 12 open-plan, modular offices, with the possibility of joining offices to cover entire floors. There is also space for two shops on the building's ground floor. On the plot adjoining the office building, the Nelson Quintas group is also developing an underground car park to meet the elevated demand in the area. The parking structure will have three floors and 175 spots for vehicles. The ground-level roof the building will become a park, open to the public. He adds that this building will have, as a particularity, "the green roof, at ground level, providing a place of leisure / public enjoyment for the users of the office buildings in the surroundings, ideal for their breaks from work. Original Story: Idealista – Elisabete Soares Photo: Nelson Quintas Translation/Summary: Richard D. Turner
Cofidis Acquire Natura Towers for €46.5 Million
25 May 2020 The French company Cofidis has acquired the Natura Towers, an office complex located in Telheiras, Lisbon. The sale was conducted as part of MSF Ativos Imobiliários’s insolvency proceedings. The firm went bankrupt with debts of 56.3 million euros, much of it to CGD. Cofidis, which specialises in consumer credit, paid 46.5 million euros for the asset. The French financial services company will install its new Portuguese headquarters in the complex. The move, however, has been temporarily postponed due to the Covid-19 pandemic. The firm began operating in Portugal 24 years ago and has more than 600,000 clients in the country. The Natura Towers consist of two, eight-floor office towers with a surface area of more than 12,000 square metres. The sale of the asset attracted five bidders, including Värde Partners. Original Story: Jornal de Negócios - Rui Neves Translation/Summary: Richard D. Turner