• Transaction / Assets
    Merlin Purchases Lisbon’s Zen Tower
  • Seller
    n/a
  • Buyer
    Merlin
  • € MM
    33.3

Merlin Purchases Lisbon’s Zen Tower for €33.3 Million Euros, Strengthening its Presence in Portugal

17 April 2018

The asset, located on Dom Joao II, the main avenue in Lisbon’s neighbourhood of Parque das Nações, has 10,190 square meters of gross leasable area distributed over 13 floors plus five parking floors (331 spaces).

Merlin has gone shopping in the Portuguese market. The socimi has just finalised the acquisition of Torre Zen, in the Expo area of Lisbon, expanding its footprint in the Portuguese office market to above 70,000 square meters, the group announced in a statement. The acquisition price reached €33.3 million, an implied gross return of 6.4% on €2.1 million of gross income.

The asset, located on Dom Joao II, the main avenue in Lisbon’s neighbourhood of Parque das Nações, has 10,190 square meters of gross leasable area distributed over 13 floors plus 5 floors of parking (331 spaces). The asset is 100% leased to companies such as Danone, Avigilon (Motorola Solutions) and Subsea7, a global engineering company.

Merlin has thereby increased its presence in the Lisbon office market through the acquisition. “Last year was the most active fiscal year of the last decade, with more than 165,000 square meters contracted, a reflection of positive macroeconomic data, a competitive labour market and an excellent quality of life, which is attracting strong demand from multinational service companies, back-offices and call centres,” the socimi, which is led by Ismael Clemente, explained.

Parque das Nações, where Merlin currently has three buildings with a total of 27,240 square meters of gross leasable area, is at full occupancy and was the area that had the largest general increase in rents in 2017.

Original Story: EjePrime

Translation: Richard Turner