• Transaction / Assets
    Pedro Pinto buys five building in downtown Porto
  • Seller
  • Buyer
    Pedro Pinto
  • € MM

A Partner in the Livraria Lello Buys Building Housing the Historic Confeitaria Serrana

 

23 August 2017

The Pensão Douro and the Casa Arcozelo are two other establishments that are part of the buildings bought by Pedro Pinto. Tenants fear for the future.

The businessman Pedro Pinto, a partner at the Livraria Lello, bought five buildings on Rua do Loureiro, in Porto, where the Pensão Douro, the Confeitaria Serrana and the Casa Arcozelo are located. At a time when investors are acquiring a large amount real estate in downtown Porto, often to turn them into hotels, tenants are worried about the future of their businesses, but Pedro Pinto says he has no plans for the area. “I like to support the area and want to invest,” he explained.

Contacted by Público, Pinto, who also runs the Lionesa business centre, said that “the only change is that tenants will pay rent to a different person,” pointing out that he has “not had any ideas to develop.” “Any projects that may arise will be a consequence of this act,” he added laconically.

Despite this statement from the new owner, tenants are wary of what will follow. The owners of Pensão Douro and Confeitaria Serrana realize the importance of renovating the city, but they argue that “there needs to be a balance”. “Tourists are also interested in traditional,” they add, recalling situations in which they were asked for directions to typical Portuguese restaurants.

For now, the tenants have been visited by an architect, sent by the new owner. It remains to be seen whether the change in landlords will bring some change to the three businesses on the street next to São Bento train station.

The tenants of the purchased properties state that they were not informed of the sale of the buildings, which they learned of through a registered letter sent by the new owner, in which only the change of owner and new banking details for rental deposits were explained. The letter included a request to review the terms of the rental agreements. Thus, they ended up not being able to exercise the pre-emptive right provided to tenants by law, which would give them a chance, if they wanted and could, to buy the buildings.

The three tenants – Pensão Douro, Confeitaria Serrana and Casa Arcozelo – received the same letter, none of which was accompanied by documents proving the transfer of ownership of the properties. The situation has caused some discomfort and having been advised by their lawyers, the tenants are waiting for a meeting with the new owner to see if their businesses will be affected.

The Confeitaria Serrana, which has been in existence for more than 70 years, appeared in a news article in Público just over a month ago, citing the degrading interior of the establishment, caused by the growing influx of tourists. The establishment is famous for the beautiful first-floor iron balcony and the ceilings designed by Acácio Lino, which attracts dozens of visitors of visitors every day. Mónica Oliveira, the owner of Serrana, wants to see the confectionery classified as a protected store within the scope of the Porto Tradição program. “We have owned the confectionery for 41 years. I came here when I was five,” she says, explaining that rents are high throughout the city and that she would prefer to pay more than to have to leave.

Next door, the owner of Pensão Douro had just finished smoking a cigarette at the entrance while guests came in. The guest-house has been there since 2000. “Blood, sweat and tears” is how Victor, as he prefers to be called, describes his time with the establishment. He lives there with his two children and has recently had renovations done, investing all the money he had on the business. “I’m the only one here who sleeps on the street,” he says. Two houses below, on the other side of Confeitaria Serrana, is the entrance to the Casa Arcozelo, where Manuel and his wife sell cheese and cold cuts. If they are forced to close, they will not open anywhere else.

“We all grew up here,” Monica Oliveira insisted, explaining that the people’s history and experience of the street is even greater than the interest in the businesses they maintain there.

Original Story: Público – Sara Lopes

Translation: Richard Turner