Portugal’s Banks to Sell Portfolio of Rental Homes Worth €360 Million

30 July 2020 – Several Portuguese banks, including Novo Banco, have put a portfolio of more than 4,400 homes, worth a total of 360 million euros, up for sale. In all, there are 4,435 homes, most of which are currently leased to tenants. The dwellings are primarily in city centres of Porto, Setúbal and Lisbon and are part of a set of real estate investment funds (FIIAH) managed by Norfin.

The funds are owned by the leading Portuguese banks, including Novo Banco, Caixa Geral de Depósitos (CGD), Montepio, BCP and Santander Totta. In order to address a lack of supply of affordable housing, the Portuguese government led an initiative to allocate hundreds of properties in the social housing rental funds. In exchange for the properties, the banks received shares in the funds.

At the time, the project was run by Social Security Financial Management Institute and the Housing and Urban Rehabilitation Institute (IHRU). It included such banks as BES, Banif, Banco Popular, Santander Totta, Montepio, Millennium BCP and CGD. BES failed in 2014 and was taken over by Novo Banco.

Original Story: Economia Online – Alberto Teixeira / Rita Neto

Translation/Summary: Richard D. Turner

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