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May 22, 2022

Of particular note was Sonae Capital’s sale of Aqualuz Tróia Mar & Rio and The Editory by The Sea Tróia-Comporta.

The middle of May proved to be especially active for the real estate market in Portugal, particularly in the residential and hotel sectors. Some news of interest came to light, along with significant investments.

At the beginning of the week, Coporgest’s Chiado 12 announced that it would gain new luxury flats. Transformed into a residential building, in a total investment of 9.25 million euros, Chiado 12 is undergoing an intervention to add two new luxury flats. The development located in Largo do Chiado, in the heart of Lisbon, has been a reference in the capital for being where the famous Hermès brand shop is located. In 2014 it was acquired by Coporgest, a company specialising in the development of luxury real estate projects.

Madeira plans to invest €136 million in housing for 1,400 families under the Recovery and Resilience Programme (PRR). The Government of Madeira aims to build 783 homes by 2026 in the autonomous region’s 11 municipalities. The projects built in the 11 municipalities may suffer changes due to the rise in the price of raw materials and labour shortages. At stake is the acquisition of 533 homes at controlled costs and the rehabilitation of 325 homes, especially regarding energy efficiency improvement. There is also a budget of 1.6 million euros for information technologies linked to social housing.

Midweek, it was announced that Herdade Monteverde is the new residential tourist resort on Lisbon’s south bank. Located in a 102-hectare nature reserve, Herdade Monteverde will have 355 homes, including detached villas, townhouses, and flats. In partnership with the SIL Group, Homelovers is now exploring this new project after the success of Herdade da Aroeira. It is a tourist residential development, so it may be eligible for Golden Visa buyers. Prices for detached villas start from €740,000 and townhouses from €420,000.

Meanwhile, a new My Auchan convenience store has opened in Costa da Caparica. More My Auchan shops are planned for the coming years. This is the 32nd My Auchan shop to open. The 385-m2 space is located in Rua dos Pescadores and intends to offer a simple and quick response to its customers and a better shopping experience.

With the week coming to an end, the São João da Praça was announced as a new residential project in Alfama. The new project next to Sé de Lisboa, is the result of the rehabilitation of a Pombaline building in Alfama. The renovation project, designed by Appleton & Domingos Arquitetos, will bring to this traditional neighbourhood nine modern 1 to 2-bedroom flats, and two duplexes on the top floor. The areas of the flats vary between 60 m² and 124 m², with prices from €500,000 to €1,040,000. Construction began in April and delivery of the flats is scheduled for the last quarter of 2023.

Finally, Sonae Capital announced the sale of Aqualuz Tróia Mar & Rio and The Editory By The Sea Tróia-Comporta. The Editory Hotels, Sonae Capital’s Hospitality business unit will keep the management of these tourism assets, with a total of 377 rooms. This is one of the largest real estate investment operations in hotels carried out in the Portuguese market since the beginning of the year, the transaction value of which was not disclosed.

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The biggest investments and highlights of the previous week in the Portuguese real estate market.

May 16, 2022

The highlight of the week was the launch of the Octant Hotels brand by Discovery Hotel Management.

The last week was marked by some news and investments in the Portuguese real estate market. The highlight was the hotel sector, where the most significant announcements from north to south of the country predominated.

At the beginning of the week, it came to light that a German transport and logistics multinational had opened a technology centre in Porto. The new facility is located in the Latin Building, with a total area of 1,000 m2. It will be the office building’s first tenant as it expands its operations in Portugal. The new technology centre is intended for developing digital solutions.

Meanwhile, the Hotel Meliã Lisbon has entered the second phase of construction. The hotel going up next to the Marquês de Pombal should be ready by 2023. It will have approximately 240 rooms, convention rooms and a congress centre for 550 people. There are 22,220 m² of gross construction area on 14 aboveground floors and six underground floors.

Portugal’s housing sector also saw some significant news, as a project was announced involving the development of 400 flats in an investment of 16.25 million euros. The new project has the potential for building over 50,000 m2 of residences located next to Marina de Lagos in the Algarve. Marina Park II has an approved PIP with the potential to build around 400 homes in addition to a retail area. Interfundos has awarded the exclusive commercialisation of this project to JLL. The project represents an excellent opportunity to reinforce the supply of homes in the Algarvian city. It foresees a total construction area of over 51,000 m2, of which 49,520 m2 is distributed over 16 plots for residential development and 1,600 m2 for retail.

The week came to a close as news broke of Auchan’s investment of around €40 million in a new store in Cascais. The old Pão de Açúcar there was Portugal’s first supermarket 49 years ago and has now been renovated. The Auchan Retail Portugal group is responsible for the investment in the new spot, which opened last Wednesday. The new shop will have an area of around 7,000 m2, a garden at one of the entrances, a rooftop with sea views and a shopping gallery with several restaurants.

Discovery Hotel Management announced that it had launched Octant Hotels. DHM’s new brand will group and manage the eight hotels owned by the Discovery Portugal Fund in Portugal, called Octant Hotels. Its portfolio includes a unique set of boutique hotels throughout the country, which will become part of the Octant Hotels brand.  The hotels include the Douro41 Hotel & Spa, Palácio da Lousã Boutique Hotel, Évora Farm Hotel & Spa, Santiago Hotel Cooking & Nature, Praia Verde Boutique Hotel, Vila Monte Farm House, Azor Hotel and the Furnas Boutique Hotel.  DHM intend to offer a unique approach to service and experience, allowing it to showcase the best of Portuguese hospitality and highlight its various regions, cultures and landscapes.

Finally, Azora acquired the Pestana Blue Alvor. Built in 2019, the five-star hotel covers 120,000 square metres and has almost 500 rooms. This is Azora’s fourth investment in Portugal, after previously acquiring the Tivoli Marina Vilamoura resort, the Tivoli Carvoeiro resort and the Vilalara Thalassa resort. Azora bought the Pestana Blue Alvor through its Azora European Hotel & Lodging fund. Details of the investment was not disclosed. The hotel is in Alvor, on Portugal’s southern coast, with access to several beaches.

The State of the Portuguese Real Estate Market in April

April’s property market remained vigorous and resilient at the start of the second quarter of the year. After two years of the pandemic and an international conflict currently affecting the entire European economy, the sector is weathering the storm and saw significant investments during the month in various sectors.

Residential

The month was halfway through when the beginning of the construction of MERECES 718 was announced, in an 8-million-euro investment. The first building of the new multipurpose complex, developed by dstgroup, includes 36 flats and two shops in Barcelinhos, the municipality of Barcelos. Focused on creating a familiar and safe environment, the project has already sold more than 40% of the units.

Meanwhile, the Convento do Beato will include a residential condominium with more than 60 flats. The Larfa Properties group will redevelop the surrounding buildings to accommodate this condominium with 61 flats and a central square with a garden which will bring together the entire block. The area in Lisbon is being completely redeveloped to integrate well-known events space with a new residential condominium called Beato Quarter.

Finally, the real estate developer SOLYD Property Developers started work on the third and final block of Lago Altear. 80% of the units have already been sold in just three months. The building, LAGO ALTEAR – Block C, is the seventh launch of the project ALTEAR, consisting of 63 new flats and three commercial spaces in Alta de Lisboa. Composed of three buildings, Block C represents an investment of 31 million euros. The first two blocks were already concluded and fully let. The construction company Alves Ribeiro is responsible for the project to be completed in 2024.

Offices

A the beginning of the month, WeWork announced that it would open the first flex office space in Portugal. The first tenant will be Organon, a multinational operating in the health sector, and the space will be inaugurated in the summer of 2022. The building located at Rua Alexandre Herculano will mark the 39th country for WeWork globally.   The opening in Portugal reflects the company’s growth strategy, which involves expansion into markets with strong demand for flexible workspaces. Organon, a global leader in women’s health and a valued member of WeWork worldwide, will occupy three floors of the building.

Industrial and Logistics

April also began well for the industrial and logistics sectors, starting with doValue’s announcement regarding its sales of three commercial properties for €5.9 million. The transactions were completed in the first quarter of this year but have only just become public. The assets are located in Abrunheira, Sintra, the Industrial Area of Santarém and the Warehouse area in Taveiro, Coimbra. DoValue Portugal intermediated the sale of three commercial buildings. The operations concluded in the first quarter of this year totalled close to 6 million euros.

Meanwhile, Panattoni announced an investment of 50 million euros in its first logistics park in Portugal. The logistics-industrial real estate developer has debuted in Portugal, developing the largest logistics project in the country’s north, including two buildings with surface areas of 27,000 m2 and 47,000 m2 for lease in Porto. Panattoni’s first deal in the country was the acquisition of 150,000 m2 of land in the industrial complex of Campo Valongo, Porto. Panattoni Park Porto, the new logistics facility, results from a purchase from the Braga-based Castro Group, which will also be responsible for supervising the different phases of the project’s pre-construction process.

With the month drawing to a close, Aldi announced a 60-million-euro investment in its largest distribution centre. Located in Moita, the warehouse will allow it to supply more than 100 Aldi shops in Portugal rapidly. The food retailer also stated that the centre, with an area of 57,000 square metres, will streamline the supply of goods to shops across the country. The structure was designed to support over 150 shops in the country and arose due to the need to support Aldi’s expansion plan in Portugal, aiming to reach 200 shops by 2025.

Student Residences

The Universidade Nova de Lisboa announced the launch of a tender to create a University Residence in Caparica. The project will result in the largest accommodation for the academic community in Almada. With up to 550 beds, it will be the largest accommodation for students, teachers and researchers in the Almada region. The purpose of the tender is the constitution of a surface right for a lot located on the Campus of the Faculty of Sciences and Technology (FCT) in Caparica, Almada.

Residences for Senior Citizens

Thor announced the expansion of its portfolio, acquiring a social and health project in the heart of Porto. In Porto, the private equity firm bought a senior citizens’residence on Rua 5 de Outubro. The move is part of its investment plan on the Iberian Peninsula. It will develop a six-storey building with a surface area of more than 6,910 square metres, with 96 single rooms and eight double rooms.

Hotels

Fontinha Hotel opened at the beginning of the month in the historic centre of Porto. The urban rehabilitation project results from a 14-million-euro investment by Mercan Properties.

The new four-star hotel has 49 rooms on six floors. The first Trademark Collection by Wyndham hotel in Portugal was built on the site of an old quarry. The new four-star hotel is located in the city’s historical centre, between Rua da Fontinha and Rua de Santa Catarina.

Meanwhile, the Barceló Angra Marina has been awarded at the Traveller Review Awards 2022. The awards have been given according to customer reviews in recent years. The Traveller Review Awards 2022 were awarded to 113 Barceló Hotel Group hotels located in 13 countries in Europe. The only five-star hotel in Angra do Heroísmo, on the island of Terceira, was one of the winners. The hotel has 130 rooms and is an urban holiday resort located next to the sea, and the Angra do Heroísmo marina.

Shopping Centres

With April drawing to a close, Grupo Domingos Névoa announced it had acquired two shopping centres for more than 20 million euros. Its initial acquisition of the Braga Retail Center was followed closely by the Mira Maia Shopping. The Braga group intends to reinforce its presence in this sector. Mira Maia Shopping, inaugurated in 2009 by the bankrupt FDO in a €45 million investment, was managed by Inogi – Asset Management. The asset is located close to Francisco Sá Carneiro Airport, has 19,000 square metres of gross lettable area, around 80 shops and approximately 850 parking spaces.

Proptech

Tiko announced that it is continuing its expansion in Portugal with a new branch in Porto. Tiko now has three locations in Portugal: Lisbon, Setúbal and Porto. The company is the first international iBuyer to operate in the Portuguese market and is looking to expand further after beginning its expansion in November 2021. It chose Lisbon as its first overseas location and is now expanding to Porto.

#BrainsFlash

The biggest investments and main highlights of the last week in the real estate market.

May 2, 2022

Aldi invests 60 million euros in its largest distribution centre.

After the first quarter of the year, for which statistical data is still being released, this last week of the month was very tranquil regarding investments in the real estate market. Still in a transitional phase after the Easter period and with a holiday at the beginning of the week, these last few days were, in fact, very quiet in transactions and operations in most of the real estate sectors.

Of note was the announcement that Aldi has invested 60 million euros in its largest distribution centre. Located in Moita, the warehouse will allow it to supply more than 100 Aldi shops in Portugal. The food retailer also stated that the 57,000-m2 centre would streamline the supply to its shops across the country. The facility was designed to supply over 150 shops in the country. The investment came in response to Aldi’s expansion plan in Portugal, aiming to reach 200 shops by 2025.

At the end of the week, Grupo Domingos Névoa announced it had acquired two shopping centres for a total of more than 20 million euros. Its initial acquisition of the Braga Retail Center was followed closely by the Mira Maia Shopping. The Braga group intends to reinforce its presence in this sector. Mira Maia Shopping, inaugurated in 2009 by the bankrupt FDO, in a €45 million investment, was managed by Inogi – Asset Management. The asset is located close to Francisco Sá Carneiro Airport, has 19,000 square metres of gross lettable area, around 80 shops and approximately 850 parking spaces.

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April 4, 2022

Mercadona plans to open ten new shops and invest 150 million euros by 2022.

After a quieter week, this last week arrived in a big way as the first quarter, and the financial year both came to a close. With a series of transactions and investments, the last week of March demonstrated, once again, the strength of some sectors of Portugal’s real estate market. After two years of the pandemic, the hotel sector is now showing more and more dynamism and is taking off strongly at the beginning of the year.

Also of note was the residential sector, which also saw some major announcements regarding investments aimed at mitigating the lack of supply in the country’s housing stock.

At the beginning of the week, the Empril Group announced the acquisition of a 60,910-m2 plot of land in Vila Nova de Gaia. The project planned for the land is for residential construction. It will involve an investment of over 30 million euros, solidifying the Empril Group’s leading position in the Vila Nova de Gaia market. The project will have an unobstructed view over the Douro River and is very close to the sea line.

Meanwhile, in the hotel sector, the Four Points by Sheraton Matosinhos opened its doors after an investment of 19.1 million euros. Located in the city centre and just five minutes from the beach, the new hotel unit has 108 rooms and results from an urban rehabilitation project by Mercan Properties. The hotel caters to business travellers, and all rooms are equipped with a compact kitchen and other amenities such as Wi-Fi to make guests feel at home.

Also in Portugal’s north, Hoti Hoteis is betting on a new hotel in Braga. Hotel Plaza Central is scheduled to open in Easter 2024, resulting from a 16-million-euro investment. The Hoti Hoteis Group will have 108 rooms, with a Portuguese inspiration in the design, decoration and materials. The new unit will also have a spa, outdoor and indoor pool, restaurant, bar, cloister and meeting rooms.

In retail, the supermarket chain Mercadona announced that it would open a supermarket in Guimarães, with a forecast investment of €150 million by 2022. The supermarket chain will reach five new districts, Viseu, Leiria, Santarém, Setúbal and Lisbon. The first of the ten new shops planned for 2022 in Portugal will open in Guimarães on April 5th. The new stores underscore Mercadona’s continuing interest and confidence in Portugal.

At the end of the week, it was made public that the site of the former Favorita chocolate factory will be converted into a residential project. The plot has an area of around 7,000 m2 and more than 9,000 m2 of potential gross construction area. Still under analysis by the Lisbon City Council, the project foresees the development of 90 flats with an investment of around 40 million euros. It also includes an area dedicated to retail and large areas of green spaces, both for private use by residents and for collective use. The asset’s sales price, which Gavepart – Imobiliário e Turismo S.A. sold, was not disclosed.

Finally, the company Emanuelle Investments acquired a plot for residential development in Leça da Palmeira, the municipality of Matosinhos. The asset will be the focus of a 15-million-euro investment and will have the capacity to host a residential project with around 5,000 m2 and 50 flats on 11 floors.

The State of the Portuguese Real Estate Market in March

April 1, 2022

Closing out the first quarter of the year, March came loaded with news in Portugal’s real estate market. While, on the one hand, two years of the pandemic caused immense problems for the hospitality sector, there have since been a series of transactions and new projects. At the same time, the housing market saw the birth of several new projects in response to a shortage in the supply of homes.

Housing

On the first Monday of the month, the Fortera group announced the implementation of a new concept in all its new buildings, an investment which will eventually cost 500 million euros. Alive by Fortera will be the focus of an initial investment of around 115 million euros, with a global investment forecast of €500 million over five years, building 1000 new homes. This concept aims to revolutionise the way we live and think about housing.

Meanwhile, in Vila Nova de Gaia, the developers SPintos S.A. Group and Chave Nova – Mediação Imobiliária, Ltd. will build the residential development “Jardins da Seara,” with an investment of 100 million euros in approximately 700 flats. With the architectural project concluded, construction will begin mid-next month. The development will include ten lots in an area of about 70,000 m2 for aboveground housing, shops and services.

Also, at the beginning of the month, it was announced that the NOOBA would go up in Barreiro, in a potential investment of up to 130 million euros. With a total gross area of 98,360 m2, the real estate developer Solid Sentinel’s residential project will consist of 518 one-to-five bedroom flats, with prices starting at 189,000 euros.

Qriar City will also invest 70-million-euros in three buildings in Alta de Lisboa. The land in the capital has a buildable area of 25,655 square metres (m2), located next to Lisbon’s Parque Oeste. The group acquired the land from GAL – Sociedade Gestora at the end of February. A total of 148 new homes are planned for the area, including three buildings. A public tender for the construction, with expected costs of 45 million euros, will be launched in the first half of 2022, and it is estimated that work will begin in early 2023.

Further north, Bondstone announced the start of work on the GREENSTONE luxury development in Porto. The residential project located in Foz, Nevogilde, represents an investment of over 28 million euros and is being built by ACA – Engenharia & Construção. Construction is expected to be concluded by the end of 2023, with over 30% of the units already sold.

With the month nearing its end, the investment that stood out the most came to light, as SOLYD Property Developers stated that it would invest 260 million euros in a new project in Miraflores. The project has 426 residential units, 25,000 m2 of gross aboveground construction area for developing workspaces, and 23 commercial spaces. The new multi-purpose project, called MIREAR, includes five residential buildings, one office block and several shops with an excellent location in the heart of Miraflores.

Meanwhile, the Empril Group announced that it had acquired a 60,000 m2 plot of land in Vila Nova de Gaia. The 60,910-m2 property will be used for residential construction. The project results from an investment of over 30 million euros. It’s expected to solidify the Empril Group’s current leading position in the Vila Nova de Gaia market.

News was also released that the site of the former Favorita chocolate factory will give way to a new residential development. The site has an area of around 7,000 m2 and more than 9,000 m2 of potential gross construction area. Still under analysis by the Lisbon City Council, the project foresees the development of 90 flats with an investment of around 40 million euros. It also includes an area dedicated to retail and large areas of green spaces, both for private use by residents and for collective use. The asset’s sales price, which Gavepart – Imobiliário e Turismo S.A. sold, was not disclosed.

Offices

The office sector saw less movement in March, with one of the largest known transactions coming when Santander sold a building in Lisbon to Incus Capital. Located in the Praça de Espanha area, it was acquired by a fund managed by Incus Capital, a pan-European investment company based in Madrid with offices in Lisbon. According to market sources, the sales price was approximately 55 million euros. The property is an outstanding real estate asset in a central location, with a total area of over 24,000 m2 of space, including the main building and two independent blocks. The largest building has ten aboveground floors (11,657 m2) and three underground floors, including 296 parking spaces.

Logistics and Retail

Meanwhile, the logistics sector saw the sale of three warehouses in Porto Alto to Bedrock Capital and Europi Property, though the sales price was not revealed. The warehouses are located in the Porto Alto Industrial Park and have a total of approximately 40,000 m2 of gross construction area. The assets were owned by a real estate investment body and have now been acquired by a joint venture between Bedrock Capital Partners and Europi Property Group.

In retail, the supermarket chain Mercadona announced that it would open a supermarket in Guimarães, with a forecast investment of €150 million by 2022. The supermarket chain will reach five new districts, Viseu, Leiria, Santarém, Setúbal and Lisbon. The first of the ten new shops planned for 2022 in Portugal will open in Guimarães on April 5th. The new stores underscore Mercadona’s continuing interest and confidence in Portugal.

Hotels and Resorts

At the very beginning of the month, Coporgest announced a €116-million investment in a new resort in Troia/Comporta. The real estate developer is responsible for the new five-star tourist development on the Alentejo coast. The future resort will be built on land that Coporgest acquired from Sonae Capital in December 2020. The project should be completed in 2025, and sales of the villas and flats are planned to begin in mid-2023. The new resort includes a 5-star hotel with 58 rooms and suites, with two presidential suites, and an additional 38 villas and 91 tourist flats.

Again, further north, in Arcos de Valdevez, the Luna Hotels & Resorts Group is preparing to inaugurate the Hotel Solar de Requeijo. The total investment is expected to reach €4.1 million. The new facility, located in Arcos de Valdevez, comprises 27 rooms and suites. An agreement between the municipality and the Luna Hotels & Resorts Group facilitated the acquisition and subsequent rehabilitation of the vacant manor into a major new hotel for the region.

Also in early March, another major investment emerged, with Mercan Properties investing €187 million in three Marriott hotels. Mercan Properties signed an agreement with Marriott International to operate three hotels in Portugal. The hotel projects are in Lagos, Lisbon and Vila Nova de Gaia and will be managed by Ace Hospitality Management (AHM). They include the Marriott Lagos in the Algarve, the Moxy Alfragide Lisbon and The Riverview, a Tribute Portfolio Hotel located in Vila Nova de Gaia.

Meanwhile, part of the Hotel Intercontinental do Estoril was acquired by BPI Imofomento for €22 million. BPI acquired 62 of the building’s 88 flats from the Closed Real Estate Investment Fund Turístico II. The deal was finalised for 4.4 million euros, below the property’s last valuation of 26.3 million euros. The deal for the 62 units includes a 20-year lease contract. The hotel will continue to be managed by the Intercontinental group.

March was already half over when the opening of the Sé Catedral Hotel Porto was announced, following an investment of 23.8 million euros. Sé Catedral Hotel Porto, Tapestry Collection by Hilton, results from an urban rehabilitation project. The new 4-star hotel is Mercan Properties’ new investment in the centre of Porto. This is the first project under the Tapestry Collection brand, belonging to the international Hilton group, and will be managed by Ace Hospitality Management (AHM). Sé Catedral Hotel Porto has 77 rooms, a restaurant, bar and a café on the terrace overlooking Porto’s Sé Cathedral.

Still in the north, another hotel unit, the 1877 Estrela Palace, opened its doors in Aveiro. The new luxury hotel is in Porto’s historic centre and will be managed by Unlock Boutique Hotels, which also manages various units throughout the country. The 1877 Estrela Palace has nine luxurious rooms and suites in an ancient 17th-century manor. It’s considered a paean to luxury in the heart of Aveiro, with stunning views over the main channel of the great Ria de Aveiro.

Towards the end of the month, the Four Points by Sheraton Matosinhos opened its doors after an investment of 19.1 million euros. Located in the city centre and just five minutes from the beach, the new hotel has 108 rooms. It is the result of an urban rehabilitation project by Mercan Properties.

Also in Portugal’s north, Hoti Hoteis is betting on a new hotel in Braga. Hotel Plaza Central is scheduled to open in Easter 2024 and results from a 16-million-euro investment. The Hoti Hoteis Group will have 108 rooms, with a Portuguese inspiration in the design, decoration and materials. The new unit will also have a spa, outdoor and indoor pool, restaurant, bar, cloister and meeting rooms.

NPLs

The NPL (Non-Performing Loan) market saw a major transaction at the beginning of March. It was BCP’s turn to conclude the sale of its non-performing loan portfolio Project Lucia. Comprising non-performing loans with a nominal value of €60 million and real estate assets worth €50 million, the Lúcia portfolio was sold to LX Partners (in partnership with Cabot). Millennium BCP will also return to the market, continuing efforts to clean up its balance sheet.

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March 28, 2022

Last week’s highlight was Solyd’s €260-million investment in a new project in Miraflores.

After a relatively serene period week before last, the real estate market gained a new lease of life. With the end of the month approaching, the real estate market has picked up speed again. The most important news came from investments in the hotel sector, where new units in the north of Portugal were inaugurated.

Right at the beginning of the week, the inauguration of the Sé Catedral Hotel Porto was announced, in an investment of 23.8 million euros. Sé Catedral Hotel Porto, part of the Tapestry Collection by Hilton, results from an urban rehabilitation project. The new 4-star hotel unit is Mercan Properties’ new investment in the centre of Porto. This is the first project under the Tapestry Collection brand, which belongs to the international Hilton group in Portugal. The result of another Mercan Properties’ urban rehabilitation project, it will be managed by Ace Hospitality Management (AHM). Sé Catedral Hotel Porto has 77 rooms, a restaurant, a bar and a café on the terrace overlooking Porto’s Sé Cathedral.

Meanwhile, the sale of three logistics warehouses in Porto Alto to Bedrock Capital and Europi Property was announced in the logistics sector. The warehouses are located in the Porto Alto Industrial Park and total around 40,000 m2 of gross construction area. The assets were owned by a real estate investment firm and have now been acquired by a joint venture between Bedrock Capital Partners and Europi Property Group. The value of the transaction was not disclosed.

Meanwhile, another hotel unit was inaugurated in Aveiro after an undisclosed investment. The 1877 Estrela Palace, a new luxury hotel unit, is in the city’s historic centre, under the management of Unlock Boutique Hotels, responsible for managing various units throughout the country. The new hotel has nine luxurious rooms and suites. The building is an old 17th-century manor, considered an ode to luxury in the heart of Aveiro. It is in the historical centre and has stunning views of the main channel of the great Ria de Aveiro.

At the end of the week, the most significant investment of the week was revealed, as Solyd invested 260 million euros in a new project in Miraflores. The real estate developer, SOLYD Property Developers, has launched its latest urban project in Miraflores, called MIREAR. The project has 426 residential units, 25,000 m2 of above-ground gross construction area for the development of workspaces, and 23 commercial spaces. MIREAR is the new multi-purpose project that includes 5 residential buildings, 1 office block and shops, located in a premium area in the heart of Miraflores.

#BrainsFlash

The highlight of the week in Portugal’s real estate market was the sale of Project Lucia, a portfolio of non-performing loans.

The last two years have undoubtedly had a major impact on the tourism and the hospitality sectors, but they have nevertheless maintained their strength faced with such adversity. Proof of that came again last week in the form of important announcements regarding significant investments in hotels and resorts.

The NPL (Non-Performing Loan) market also saw a major deal, announced at the end of the week. BCP finalised the sale of the non-performing loan portfolio Project Lucia. The Lúcia portfolio, comprising non-performing loans with a nominal value of €60 million and real estate assets worth €50 million, was sold to LX Partners in partnership with Cabot. Millennium BCP will continue its efforts to clean up its balance sheet.

The week was starting when Coporgest announced a €116 million investment in a new resort in Troia/Comporta. The real estate developer will build the new five-star tourist development on the Alentejo coast on land that Coporgest acquired from Sonae Capital in December 2020. The project should be completed in 2025, and pre-sales of the various villas and flats are scheduled to begin in mid-2023. The new resort includes a 5-star hotel with 58 rooms and suites, including two presidential suites, 38 villas and 91 tourist flats. The resort will be situated close to the beach, and every unit will have sea views.

Further north, in Arcos de Valdevez, the Luna Hotels & Resorts Group is preparing to inaugurate the Hotel Solar de Requeijo. In a global investment totalling 4.1 million euros, the new hotel comprises 27 rooms and suites. A deal between the municipality and the Luna Hotels & Resorts Group facilitated the acquisition and conversion of the vacant manor house into a hotel, whose inauguration is imminent.

Another important investment emerged at the end of the week, with Mercan Properties investing €187 million in three Marriott hotels. Mercan Properties has signed an agreement with Marriott International to operate three hotels in Portugal. The hotel projects are located in Lagos, Lisbon and Vila Nova de Gaia. Management will be handled by Ace Hospitality Management (AHM). They are the Marriott Lagos, in the Algarve, the Moxy Alfragide Lisbon and The Riverview, a Tribute Portfolio Hotel, located in Vila Nova de Gaia.

The State of the Portuguese Real Estate Market in February

The month of February saw both positive and negative events and reports, though they are not expected to harm the real estate market in Portugal.

The real estate sector has overcome, in various ways, the turbulence of the last few years, regularly demonstrating its resilience. On the one hand, pandemic-related restrictions are being increasingly eased, providing a boost of confidence to every sector of the Portuguese economy. On the other hand, the end of the month brought the news of a devastating war that is likely to roil the worldwide economy.

However, last month, even with Carnival, was a period of impressive reports in investment and transaction markets. There was an enormous emphasis on one of the sectors that suffered the most over the last two years but which nevertheless maintained its dynamism. In this month of February, the announcements of hotel groups stood out from the other sectors, by the sheer number of planned investments.

Residential

The residential sector continued to provide a slew of new projects. Among others, a new condominium will go up in the Old Prado Factory in Matosinhos. The old sardine canning factory, which closed 20 years ago, will be completely refurbished and converted into 30 1-5 bedroom flats, just 200 metres from the beach, on one of the city’s main avenues. Marketing is the responsibility of JLL and Predibisa. The value of the investment was not disclosed.

Offices

Also in Portugal’s north, Sonae Sierra and the Ferreira Group announced that they would develop a state-of-the-art office complex in Porto. The project fits in Sonae Sierra’s strategy regarding cities of the future and the Ferreira Group’s strategy to be present in markets with high demand. With an investment of 42 million euros, the complex will be developed with a contemporary and flexible architecture and with demanding sustainability requirements. The office complex, designed by Broadway Malyan, will have modern architecture, emphasising flexibility, innovation, and sustainability, prioritising the quality of spaces, comfort and people’s well-being.

Logistics

Meanwhile, the German supermarket chain Aldi announced a €50 million investment in a logistics platform in Santo Tirso. Construction is expected to start in March, and the platform should be operational by mid-2024. The project will be built in the Ermida Business Centre on the land at Quinta da Chinesa. The logistics platform will occupy an area of 160,000 square metres, with 40,000 square metres of constructed surface area.

Retail

In the Portuguese capital of Lisbon, Principal announced that it had acquired a supermarket for 10.2 million euros. The space has a 15-year long-term lease agreement with Continente, Portugal‘s leading food retailer and part of the Sonae Group. Principal Global Investors acquired the supermarket in Greater Lisbon, Portugal, for its Principal European Durable Income Fund (PEDIF). The market in Setúbal has 2,700 m2 of surface area.

Hotels

In February, hospitality was the most prominent sector in the Portuguese real estate market. The Editory Riverside Santa Apolónia Hotel opened its doors after a 12-million-euro investment. The new 5-star hotel results from the rehabilitation of a part of the Santa Apolónia railway station in Lisbon. The Editory Riverside Santa Apolónia Hotel has a total of 126 rooms.

Meanwhile, the Vila Galé Group announced that it would invest around 35 million euros this year in four hotels in the Azores, Tomar and Beja. Among the news is the investment of 12 million euros in the renovation of part of the former Convent and Hospital of São Francisco, in Ponta Delgada, Azores, converting it into a boutique hotel in partnership with Santa Casa da Misericórdia. In the centre of the city of Tomar, Vila Galé will recover and refurbish several areas of the former Convent of Santa Iria and the Women’s College, with an investment of around ten million euros. In Beja, the hotel group has two projects in the pipeline: Vila Galé Nep Kids and Vila Galé Monte da Faleira. The former will cost about ten million euros. Vila Galé Monte da Faleira will involve an approximately three-million-euro investment in agro-tourism.

The IHG Group will also invest in new hotels in Portugal. The big news is the debut of the IHG brand, Staybridge Suites, which will open in Porto and Carcavelos. Porto, Cascais, Lisbon and Évora were chosen for five new hotels in which InterContinental Hotels Group intends to invest. The openings are planned for between 2022 and 2025. The total investment has yet to be disclosed.

Alternative Assets

Further south, the Fábrica da Cerveja in Faro will be converted into a creative hub. The investment by the Faro City Council will reach 13.4 million euros and is part of Faro’s bid to become the European Capital of Culture in 2027. The rehabilitation will take around five years to be fully completed and is intended for a network of local, regional, national and international partnerships. The intervention will go through four phases, and the first two may be completed in 2026 or 2027.

NPLs

Montepio announced that it is preparing to sell a bad debt and real estate portfolio, and the bank hired the Japanese investment bank, Nomura, to conduct the operation. The NPL portfolio is valued at around 1.4 billion euros, but initially, a portfolio of €500 million should leave the bank. The major players in the market have not been invited to participate. Nomura is in talks with a closed group of investors.

#BrainsFlash

The week started with a quiet Valentine’s Day regarding transactions in the real estate market’s various sectors. However, things picked up after that, making news daily.

February 22, 2022 – Ana Custódio

The highlight of last week was Aldi’s €50-million investment in a logistics platform in Santo Tirso.

The week started with a quiet Valentine’s Day regarding transactions in the real estate market’s various sectors. However, things picked up after that, making news daily.

On Tuesday, reports came out regarding the development of a state-of-the-art office complex in Porto by Sonae Sierra and the Ferreira Group. Through an equal partnership, the project benefits from an excellent location, good highway access, an excellent public transportation network, private parking, and outdoor green spaces. The office complex will have a contemporary architecture designed by Broadway Malyan, emphasising flexibility, innovation and sustainability, prioritising quality, comfort and people’s well-being.

Meanwhile, the Vila Galé Group announced an investment of 12 million euros to convert a former hospital into a hotel. Construction is expected to begin in March, with completion in the summer of 2023. The hotel chain is arriving in the Azores by way of a partnership with Santa Casa da Misericórdia de Ponta Delgada. In what will be the second-largest Portuguese hotel group’s debut in the Azores, Vila Galé will have in a little over a year a hotel in S. Miguel, which will have 93 rooms, a restaurant and four stars.

In the logistics sector, the German supermarket chain Aldi Aldi announced an investment of 50 million euros in a logistics platform in Santo Tirso. Construction is expected to start in March, and the facility should be operational by mid-2024. The project will be built in Área Empresarial da Ermida, which corresponds to the Quinta da Chinesa. The logistics platform will occupy an area of 160,000 square metres, with 40,000 square metres of constructed surface area.

Last but not least, given that the residential still leads when it comes to the generation of new projects, a new condominium to be built in the Old Prado Factory in Matosinhos. The old sardine cannery, which closed down 20 years ago, will be completely refurbished and converted into 30 1-5 bedroom flats, just 200 metres from the beach. The development is located on one of the city’s main avenues and marketing is the responsibility of JLL and Predibisa. The value of the investment was not disclosed.

Translation: Richard D K Turner