State Property Will Pass to Property Rehabilitation Fund

2 November 2017

The Council of Ministers approved a decree today that establishes a mechanism for the identification, selection and integration of real estate pertaining to the private domain belonging to the direct and indirect state administration to the National Property Rehabilitation Fund.

The real estate investment fund, created to promote the rehabilitation of rental properties, in particular, leases, at affordable costs, thus “integrates State properties that are not necessary for the development of Public Administration activities (because they are unoccupied), increasing the supply of housing, particularly in urban areas,” the Council of Ministers’ communiqué reads.

With the approval of the decree, the Portuguese government also intends to “ensure that part of the income derived from the integration of these properties into the National Property Rehabilitation Fund (FNRE) can be invested in the Heritage Conservation and Rehabilitation Fund, creating a virtuous circle in which unneeded assets are explored commercially, which will in turn finance the conservation of the assets indispensable to the activities of the Public Administration.”

Original Story: Lusa / Diário Imobiliário

Translation: Richard Turner