• Transaction / Assets
    MK Premium Acquires Two More Buildings in Alfama, Lisbon
  • Seller
    n/a
  • Buyer
    MK Premium
  • € MM
    2.2

MK Premium Strengthens Portfolio in Lisbon: Invests €2.2 Million in Two Assets in Old City Centre

23 November 2018

The two abandoned buildings, which are next to each other, have an area measuring 960 square meters and were in disuse. The Catalan real estate company is to undertake the full rehabilitation of the buildings.

MK Premium is strengthening in presence in Lisbon’s property market, acquiring two buildings in the city’s historic old town. The Catalan firm has invested 2.2 million euros in two historic estates in the Alfama district. Both assets will be completely refurbished, after years of abandonment, to be converted into residential housing, according to statements by the company to EjePrime.

Located next to the Lisbon Cathedral and the Castelo de São Jorge, the two new buildings, now owned by the brothers Daniel and Sergio Leiva’s family office, have a total area of ​​960 square meters. The residential complex also shares an interior cloister, typical of the waterfront district in which it is located.

The largest building is located at 16-21 Pátio do Carrasco. It is an empty property that has a total area of ​​551 square meters and 114 square meters of land. MK Premium paid 1.5 million euros for the asset, which has six homes and commercial space.

The second estate is located between numbers 5 and 7 of the same street and has an area of ​​250 square meters. In this case, the family office paid 750,000 euros for the building, which has four flats between 38 meters and 80 square meters in surface area.

The neighbourhood of Alfama, the cradle of the Portuguese style of music called fado, is currently one of the areas with the greatest demand for housing in the Lisbon capital. “These old abandoned houses, located in areas that are experiencing very elevated demand for housing can help address the current lack of supply in the real estate market,” says Daniel Leiva, founding partner of MK Premium.

“When we decided to enter the Portuguese market, we had already perceived the real estate opportunities that existed in prime areas of Lisbon,”, the executive stated, adding that he expects to obtain a return close to 8% with the two assets.

Including this new investment, MK Premium now has seven residential buildings in Portugal, four of which are in Lisbon. The company also expects to finalise another acquisition, this time in Porto, before the end of the year. The family office has been active in the Portuguese market since last January, EjePrime reported.

With more than 220 acquisitions and investments of more than 94 million euros, during the current real estate cycle, the family office has expanded its real estate portfolio by 15% in 2018. The firm’s principal areas of operation include Madrid, Barcelona, ​​Lisbon and Porto.

In the coming months, the family office will invest up to eight million euros acquiring assets in the metropolitan area of ​​Barcelona, ​​with investments in municipalities such as L’Hospitalet de Llobregat, Badalona and Santa Coloma de Gramenet.

Original Story: EjePrime – J. Izquierdo

Translation: Richard Turner