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The principal investments and highlights of the last week in the Portuguese real estate market.

June 14, 2022

Last week’s highlight came in the form of the sale of the Infante de Sagres hotel in Porto to Gaw Capital.

In anticipation of the holiday celebrations during these weeks in June, the first week of the month proved to be quiet regarding the property market. However, a few transactions stood out, especially in the hotel sector.

Right at the beginning of the week, Home Tailors Real Estate announced the sale of a wine estate for 8 million euros. The real estate agency was responsible for selling the Herdade das Fontes Bárbaras, located on a classic Alentejo hill near Castro Verde. The estate has a wine-growing component and a rural tourism and wine tourism project. The tourism project is on the estate’s 162 hectares, where the predominant culture is the vineyard.

The 400-m2 tourism project comprises six suites, two living rooms, a game room, a library and heated pool and an independent, 120-m2 two-bedroom house. The property has 43 hectares of irrigated vineyards, two dams, three water holes and two boreholes, 2, approximately 600-m2 warehouses for agricultural support, and all the necessary equipment. Herdade das Fontes Bárbaras also has a fully functioning, 1,000m2 wine cellar, the capacity for 800,000 litres of wine and a wine tasting room.

Meanwhile, the Fladgate group sold a hotel in Porto to Gaw Capital. Owner of the Intercontinental Palácio das Cardosas, Gaw Capital is the new owner of the oldest 5-star hotel in Porto, the Infante de Sagres hotel. The Fladgate Partnership sold the historic hotel in a deal whose value was not disclosed. The new hotel, which has yet to be named, will have between 85 and 90 rooms and is expected to be operational within two years.

The State of the Portuguese Real Estate Market in June

Rounding out the first semester of the year, May brought a slew of announcements in the real estate market and new investments all over Portugal. There were deals in every market sector, with the principal emphasis on housing and hotels. If, on the one hand, bets on the Portuguese residential market are considered safe and profitable, on the other, and despite two years in which the tourist sector was almost stagnant, the hotel segment is now emerging and proving to be increasingly resilient in the face of past and present adversity. It should be noted that although the pandemic is lessening in its effects, Russia’s invasion of Ukraine has triggered a series of economic effects, adding to sector restraints. But the fact that Portugal is far from the conflict and has an enviable location in the south of Europe brings with its hopes of a rapid recovery of its tourism sector, especially in hospitality.

Residential

In May, doValue announced the launch of a new luxury development in Funchal, the capital of the Madeiran archipelago. The Casas Brancas development comprises 11 villas and is located in a tourist area in the parish of São Martinho, Funchal. The project is set on a rectangular geometrical plot of 3,322 square meters. The villas are arranged on three levels, enabling every flat to have south-facing balconies and terraces with excellent sun exposures and sea views.

Meanwhile, a project to develop 400 flats in an investment of 16.25 million euros was announced. The new residential project has the potential to build over 50,000 m2, located next to the Marina de Lagos in the Algarve. Marina Park II has an approved PIP with the potential to build around 400 residential units and retail assets. The project represents an excellent opportunity to boost 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, along with 1,600 m2 for retail.

It was only halfway through the month when the São João da Praça appeared, the new residential project in Alfama with prices ranging between 500,000 and 1,040,000 euros. The project is next to the Sé de Lisboa. It comes from the rehabilitation of a 9-flat Pombaline building in Alfama, bringing modern flats, one and two-bedroom homes, to this traditional neighbourhood, with two duplexes on the top floor. The flats’ surface areas vary between 60 m² and 124 m². Construction began in April, and delivery of the flats is scheduled for the last quarter of 2023.

News was released at the end of the month that the Pestana Group had inaugurated the Madeira Acqua Residences in a €100-million investment. The Madeira Acqua Residences results from the refurbishment of the Madeira Palácio Hotel and has 181 flats, ranging from 1 to 4 bedrooms and penthouses. Madeira Acqua Residences has over 7,000-m2 of gardens, direct private access to the beach and an infinity pool on the cliff’s edge, immediately overlooking the sea.

Offices

The highlight for this sector was the sale of a building on Avenida de Berna for €15 million. Cofidis and Prosegur currently occupy the building. The property, located at 54 Avenida de Berna in Lisbon, was acquired by a Portuguese institutional investor from Tristan Capital Partners’ CCP 5 fund. The building has a gross area of 3,825 m2 and 124 parking spaces, located opposite the Calouste Gulbenkian Foundation. The property is between Campo Pequeno and Praça de Espanha.

At the end of the month, CORUM Eurion announced the acquisition of a building in Porto for 16 million euros. Owned by the French management company Corum Asset Management, CORUM Eurion bought the building in the business centre on Rua do Heroísmo in Porto. The building was completely refurbished in 2021, has 6,072 square metres of surface area, and has tenants such as the tech companies Infraspeak, Koerber and Sitel.

Retail

At the beginning of the month, Mercadona opened a new shop in Póvoa de Varzim. With a sales area of 1,900 m2, it is the chain’s 31st supermarket in Portugal and the first in this city. It is on Rua Comendador Francisco Quintas, in Póvoa de Varzim, though no investment amount was revealed.

Meanwhile, Auchan has invested around €40 million in a new shop in Cascais. The old Pão de Açúcar shop, the first supermarket to open in the country 49 years ago, has been renovated. The store will have an area of around 7,000-m2, a garden at one of the entrances, a rooftop on top of the shop with sea views and a shopping gallery with several restaurants.

Hotels

A major announcement came in this sector, as Discovery Hotel Management launched Octant Hotels. DHM announced that the group’s new brand would group and manage the eight hotels owned by the Discovery Portugal Fund in Portugal, called Octant Hotels. DHM’s 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, the Palácio da Lousã Boutique Hotel, Évora Farm Hotel & Spa, Santiago Hotel Cooking & Nature, Praia Verde Boutique Hotel, Vila Monte Farm House, the Azor Hotel and Furnas Boutique Hotel.

Meanwhile, Azora acquired the Pestana Blue Alvor in the Algarve. Built in 2019, the Pestana Blue Alvor boasts 120,000 square metres of surface area and almost 500 rooms. The asset is Azora’s fourth investment in Portugal, following its acquisition of the Tivoli Marina Vilamoura resort, the Tivoli Carvoeiro resort and the Vilalara Thalassa Resort. The acquisition was completed through its Azora European Hotel & Lodging fund. Azora finalised its purchase of the Pestana Blue Alvor, though its investment was not revealed.

Mid-month saw the emergence of the Herdade Monteverde, a new residential tourist resort on Lisbon’s south bank. Located in a 102-hectare nature reserve, Herdade Monteverde will have 355 residential units, including detached villas, townhouses, and flats. In partnership with the SIL Group, HomeLovers is now exploring the new project after the success of the Herdade da Aroeira. It is a tourist residential development, so that it may be eligible for golden visa buyers. Prices for detached villas start at 740,000 euros, with townhouses beginning at 420,000 euros.

Next, Sonae Capital announced the sale of the Aqualuz Tróia Mar & Rio and The Editory By The Sea Tróia-Comporta. Sonae Capital’s Hospitality business unit will keep the management of The Editory Hotels, totalling 377 accommodation units. The sale was one of the largest real estate deals in hotels carried out in the Portuguese market since the beginning of the year, though the value of the transaction was not disclosed.

Towards the end of the month, Sonae Capital opened a new luxury hotel in Porto, investing around 20 million euros. The Editory Boulevard Aliados Porto Hotel is the new five-star hotel in Aliado, with 68 rooms. The Editory Boulevard Aliados Porto Hotel is a new space in the heart of Porto, offering nearly seven dozen rooms, a heated outdoor pool, two meeting rooms, a sensorial restaurant and a cocktail bar. The hotel is the result of a partnership between FVC Group and SC Hospitality, with the architecture and the interior design designed by Ding Dong.

NPLs

Near the end of the month, Novo Banco announced the sale of a portfolio of logistics properties. The deal’s completion is expected to positively impact around 35 basis points on the Novo banco group’s total capital ratio. The buyer’s identity and the investment value of the logistics properties located in Portugal were not released. The portfolio of real estate assets was held mainly by the real estate funds NB Património and NB Logística, both managed by GNB Real Estate. Novo Banco held a 75% stake in the real estate assets in March 2022.

Alternative Assets

In the north of the country, Supera announced an investment of €10 million in Gaia. Supera already operates two sports centres in Portugal and has seven other projects underway in Portugal. The Spanish group will build a swimming complex in Gaia, having gained a 40-year municipal concession. The Aquatic Training Complex will be built in Gaia’s Parque da Lavandeira. The Galician group Sidecu, which operates the Supera gyms brand, has 45 gyms in Spain and two in Portugal. The brand also has other projects underway in Portugal, in Braga, Porto, Coimbra, Seixal, Barreiro and Lisbon.

Later last month, a new campus of the British School of Lisbon was announced due to a 30-million-euro investment. The second campus, with 7,000-m2, 30 classrooms, a swimming pool complex and a sports pavilion, will be located on land adjacent to the Belenenses stadium. Following an agreement with Belenenses Football Club, the British School of Lisbon plans to open its second campus in Lisbon. The space will be built on land located above the main stadium.

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.

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.

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.

The State of the Portuguese Real Estate Market in December

January 3, 2022

Despite the current slowdown due to the festive season, the real estate market in Portugal has powered on, toasting the coming New Year with some of the biggest transactions and announcements of the year. December saw a series of deals, underscoring the strength, stability and resilience with which the market has faced the uncertainty of the last two years.

The point was reinforced once again by further recognition of Portugal’s tourism industry, as the country won 12 awards in the 28th edition of the World Travel Awards 2021, the most well-known prize in the sector. The trophies, awarded since 1993, served to highlight Portugal’s dominance in several categories. Madeira stood out by receiving the “Best Island Destination in the World” award for the seventh consecutive year. At the same time, Parques de Sintra was named the “World’s Best Conservation Company,” a category in which it has taken awards for eight straight years. The Paiva Walkways were also considered the “Best Adventure Attraction” for the fourth year in a row, and Dark Sky Alqueva won the “Responsible Tourism” category.

In other news, a decree was published in the Diário da República stating that the price per square metre for IMI taxation purposes will increase in 2022. The increase will be 25 euros compared to the price in 2021, rising to 640 euros, up by 4% compared to 2020. This update applies to all property valuations carried out from 1 January 2022.

Residential

In this sector, the Salgueiral Residences development announced that 90% of its more than 70 flats had already sold, in an investment of over 13 million euros. The condominium is located in the Guimarães city centre and boasts the highest standards of comfort coupled with state-of-the-art technology.

Offices

The Ageas Portugal Group acquired an office building in Lisbon. The operation represented the Group’s fourth acquisition in the real estate sector in 2021, which totals €100 million invested this year. In Sete Rios, Lisbon, the Bloom building has a gross above ground construction area of 5,500 m2. The amount of the investment was not revealed.

Logistics

Halfway through the month, Lidl Portugal inaugurated its first semi-automated logistics centre in a 73-million-euro investment. The supermarket chain’s next stop is in Santo Tirso, where it will continue to increase its bet on Portugal’s Northern region. The recent and most modern Lidl logistics centre is already operating at 100%, taking over the supply of its supermarkets in the north of Portugal. Located in Zona Industrial da Ermida, the warehouse occupies an area of 48,000 square metres and can supply more than 100 shops. The storage capacity is 55,000 pallets, and it has over 90 docks.

Student Residences

Also in early December, the Ageas Portugal Group, Promiris and Cetim signed an agreement to build a student residence in Porto. The investment amount was not revealed. Construction was scheduled to begin at the end of 2021, and the home is expected to open its doors during the summer of 2023. The 265-room purpose-built student residence, near the University of Porto’s Faculty of Engineering, will be managed by the French group Odalys.

NPLs

Nearing the end of the month and year, the Portuguese Securities Market Commission (CMVM) revealed that Novo Banco’s portfolio of non-performing loans, called the Harvey Project, was sold for €52.3 million. The portfolio, which had a value of 164.4 million euros last September, was sold to the Deva Capital Management Company fund and the Arrow Group’s AGG Capital. The completion of the transaction, under the agreed terms, is expected to impact the capital position and income statement of the bank led by António Ramalho.

On the last day of the month, the CMVM also announced stated that Banco Montepio had sold a 253-million-euro non-performing loan portfolio. The acquisition of the assets, which includes 10,318 registered loan contracts, was carried out by LX Investments Partners III, BTL Ireland Acquisitions II Designated Activity Company and BTLP Acquisitions I Unipessoal, Lda.

Alternative Assets

Again at the end of the December, the French group Icade Santé announced that it had acquired three Lusíadas hospitals and HPA Saúde’s Hospital Privado S. Gonçalo for €213 million. The four assets comprise Fidelidade’s entire SaudeInveste fund and are the Icade Santé’s first investment in Portugal. The hospitals have a total area of 90,000 square metres and over 500 beds. The three Lusíadas properties are located in Lisbon, Porto and Albufeira, while the fourth property, Hospital Privado S. Gonçalo, is in Lagos.

The State of the Portuguese Real Estate Market in November

December 2, 2021 – Ana Custódio

The second to last month of the year saw a series of major transactions in Portugal’s property market. Every sector showed a huge volume of deals and the completion of operations. In November, the office and industry and logistics segments were the most active in announced transactions.

Residential

November was just beginning when the Belas Clube de Campo announced an investment of 30 million euros in townhouses and flats. The development will comprise 35 high-quality new apartments and 15 townhouses. They have been designed for various types of families or investors. They include a range of services and infrastructure, in an excellent location just a few minutes from the centre of Lisbon, Sintra and Cascais.

At the end of the month, the Onires Group announced a new urban development project in Braga involving a €20-million investment. The Carvalhal Building promises to rejuvenate the historic centre of the city of Braga. The project includes a total of 60 flats with parking spaces and ten spaces for shops and services. It was designed by the Carvalho Araújo and Big Arquitetura, along with BO Associados.

Offices

The month started well for the office sector, in which some of the most significant deals of November were announced. A new office project called Allo will go up in Alcântara in a €125-million investment. Divided into two office buildings with similar characteristics, the ALLO project comprises a gross above ground construction area of approximately 39,000m2. The Alcântara Lisbon Offices were designed by the Saraiva Associados architectural studio and run by the management company Bedrock Capital Partners.

Also at the beginning of the month, Norfin sold an office in the Greenpark Complex, in Lisbon, for more than 6 million euros to an international fund. The property near the Catholic University and Praça de Espanha consists of an approximately 2,400-m2 office with 60 parking spaces.

Meanwhile, the former headquarters of the Somague building sold for more than eight million euros. The deal comes from a partnership between The Edge Group and the Ardma FCR fund. The office building located in Beloura, Sintra, was acquired by The Edge Group and is located next to the Beloura Business Park. The asset has around 7,500m2, 409 parking spaces, three floors and is set within a plot of land with 27,300m2 of total area. The asset also has a construction potential of 11,000m2, allowing for a future expansion.

Retail

The retailer Lidl announced that it would expand into the Autonomous Region of Madeira with an investment of €100 million. The first three shops are planned for 2023. Sustainability remains one of Lidl’s main focuses. The entry of the supermarket chain into Madeira also aims to boost the local economy, not only by establishing partnerships with local suppliers but also by recruiting employees.

Industrial and Logistics

The month began with one of the biggest transactions of the year in this sector, as Novo Banco announced that it had sold the former premises of Lisgráfica. Located in the Industrial Area of Queluz de Baixo, in the municipality of Oeiras, Lisgráfica is an industrial unit with approximately 48,000 square metres of gross construction area, set in a 105,000-square-metre plot of land. The value of the transaction and the identity of the buyer were not disclosed.

Mid-month, Ar Telecom announced that it would invest 10 million euros in a new data centre in Lisbon. The company is looking to reinforce its fibre optic network and build a new 1,400-m2 data centre in Lisbon. The operator’s strategic repositioning envisages the creation of 200 direct and indirect jobs by 2025.

Soon after came the news that Aquila Capital and GSE’s Green Logistics will build a 115,000 m2 project in Azambuja, Lisbon, one of Portugal’s logistics epicentres due to its road and sea connections.  The value of the investment was not disclosed. Azambuja Green Logistics Park is Aquila Capital’s first logistics investment in Portugal. The project is already under construction and is expected to be completed by the end of 2022. The building’s designers plan to obtain the BREEAM VERY GOOD certification.

Hotels

W Hotels Worldwide will debut in Portugal with a bold and dynamic hotel. The Hotel W Algarve will open its doors in the spring of 2022. W Hotels Worldwide, part of Marriott International, will launch the W Algarve, located on the Algarve’s iconic cliffs, less than 50 km from the Faro International Airport. The new unit will have 134 rooms and suites, as well as 83 residences. The value of the investment was not disclosed.

Alternative Assets

Tiko took a leap abroad, opening a new branch in Lisbon. The company is a Spanish proptech with an ambitious expansion plan for Europe which has chosen Lisbon as the company’s first international headquarters. The firm foresees an initial investment in Portugal of more than 30 million euros. Its innovative technology allows clients to sell their homes in record time.

Also in the middle of the month, it became known that Discovery Land Company, a North American group, was investing 285 million euros in Melides. The amount is subject to the sale of properties in Costa Terra, a tourist development located in Melides, Grândola, in which the North Americans have made at least 285.7 million euros. The Discovery Land Company acquired the Galé Camping Park from Imobiliária Ilhas Atlânticas for €25 million in October.

 

The State of the Portuguese Real Estate Market in October

October proved to be the month where real estate investments revived after the holidays. Even though the previous month was remarkable in terms of news in the real estate market, this first month of autumn brought major announcements on all types of investments in the various real estate sectors.

October proved to be the month where real estate investments revived after the holidays. Even though the previous month was remarkable in terms of news in the real estate market, this first month of autumn brought major announcements on all types of investments in the various real estate sectors.

Given the lacunae in the housing supply, the Housing and Urban Rehabilitation Institute announced the construction of 375 affordable rental homes in Almada and Setúbal. The investment, which will amount to approximately 52 million euros, will involve three new developments totalling 375 homes, aimed at the affordable rental market, on land owned by the Institute in the municipalities of Almada and Setúbal.  Two of the developments will be in Almada, São Francisco Borja and Três Vales, while the third is in Varandas do Sado, Setúbal.

Meanwhile, The Central House acquired its first asset in Portugal through the Hostel Experience Europe Fund, FCR, created two years ago by Orienta Capital. The investment is a Hostel in the historic centre of the Portuguese city of Porto. The acquisition aims to make the chain a leader in Spain and Portugal for this type of tourist accommodation, in a planned investment of more than 120 million euros over five years.

Once again, Portugal was in the news, having been elected the Best Country in the World by Condé Nast. The magazine’s readers voted for the Readers’ Choice Awards 2021 and placed Portugal at the top of the table of the twenty best countries. The hotel São Lourenço do Barrocal, in Alentejo, was elected Iberian Peninsula’s Best Hotel. Portugal topped out rivals such as New Zealand, Japan, Morocco, Sri Lanka, Italy, Iceland, Greece, Croatia, and Turkey.

 

Residential

Also in early October, the family-centred residential development Gaia Hills was unveiled, which will be developed by the Belgian groups Thomas & Piron and Promiris, in a total investment of around 85 million euros.  The development is being built in the riverside area of Vila Nova de Gaia, with a project that envisages the construction of eight residential buildings totalling approximately 256 flats, from studios to five-bedroom apartments. Projected with four to five floors, Gaia Hills will have a total aboveground construction area of around 30,500 m2.

Meanwhile, Bondstone will start the construction of a €15 million project in Cascais. The residential development, named The Coral, will be composed of 15 exclusive one to four-bedroom units. Through its subsidiary Louvre Properties, the Bondstone group has started the construction of its first residential project in Cascais, in Gandarinha. More than 50% of the units in The Coral have already been reserved. The conclusion of construction is scheduled for the last quarter of 2023.

The month was already halfway through when Nolon announced the launch of Polima Hills in a 10-million-euro investment. Located in Cascais, the development has 26 flats of various sizes and five shops. With an excellent location, right at the gates of the capital, the new development brings much-needed housing at the gates of Lisbon.

With October nearly ending, Mondego Capital Partners announced a €50-million investment in Portuguese real estate. The developer will bulk up its portfolio by acquiring new projects in historic neighbourhoods such as Baixa-Chiado/Alfama, Avenida Sidónio Pais and Avenida 5 Outubro. The investment will add a set of unique buildings for residential projects, with special emphasis on creating large residential areas, to Mondego Capital Partners’ portfolio.

 

Retail

Glicínias Plaza reopened in October after refurbishment works after a 40-million-euro investment. The shopping centre in Aveiro gained two new floors and more than 60 new tenants, after undergoing a complete refurbishment which included additional parking. The building now has an additional 13,000 square metres, increasing its gross lettable area to a total of 41,000 square metres. In total, Glicínias Plaza will have more than 120 shops, becoming the largest shopping centre in the region.

 

Logistics

The North American bank Goldman Sachs announced that it would invest one billion euros in logistics assets in the Iberian Peninsula. It intends to invest in the construction of warehouses in Portugal and Spain over the next three years through its subsidiary Newdock. The recently created company has been operating since the beginning of the year and already has a portfolio of seven logistics projects under development in Spain. Though Newdock has made its intention to invest in Portugal clear, no concrete plans have been announced to date.

 

Hotels

Once again, and for many months now, the hotel sector stood out from the rest due to a series of significant investments. The former monastery of Arouca is to be converted into a luxury hotel in a €5.9-million investment by Mesquita de Sousa Hotels & Resorts. The Mosteiro de Arouca will become a five-star hotel after being auctioned under Portugal’s Revive program. The MS Collection Mosteiro de Arouca will have fifty-six rooms, a spa, indoor and outdoor pools, a paddle tennis court, a top-flight restaurant, and other features.

Earlier in the month, the construction of Hotel Mundet in Seixal was announced, in an investment of around 7.6 million euros. Located in an old cork factory in Seixal, construction has already started after a few-month hiatus. The new 4-star hotel will have eighty-four rooms, a business centre, spa, health club, restaurant, pool, bar, and underground parking. The future hotel is scheduled to open in the summer of 2022.

Meanwhile, in the Alentejo, an 8 million euro investment was announced in a Boutique Wine Hotel, restaurant and winery, which is under construction near Quinta do Paral, in Vidigueira. In addition to a new winery and investments in the wine production process, Quinta do Paral will focus on wine tourism, including a Boutique Wine Hotel comprising twenty-three luxurious rooms and a restaurant.

 

NPL’s and REO’s

SPX – International Asset Management, after acquiring the prestigious tourist-residential complex The Keys, finalised a deal with Caixa Geral de Depósitos to boost its portfolio with an additional 850 beds in Quinta do Lago. The firm bought mortgage loans secured by two plots of land for real estate development that occupy a total area of 7.6 hectares within that Algarve resort.

Meanwhile, Millennium bcp announced that it would sell another 100 million euros in bad debts and real estate. The so-called Lúcia Project comprises a €60-million portfolio of non-performing loans and real estate assets totalling another 50 million euros. KPMG will lead the sale.

The State of the Portugal Real Estate Market in September

In the month that wraps up the summer and the third quarter of the year, investment was robust, mainly in the residential sector. Housing saw the lion’s share of activity throughout the month of September.

In parallel with August, which witnessed significant transactions at the beginning of September, with a clear focus on tourism, the Quinta do Lago Sul Golf Course reopened after a 7-million-euro investment. The largest luxury resort in the Algarve, which has been at the forefront of elite golf destinations, has finally reopened to the public after a thorough modernisation.

Near the end of September, Fercopor announced that it would launch nine projects in a 190-million-euro investment. The luxury real estate company expects to complete the projects by the end of 2022. Plans include more than 200 luxury homes and a 17-storey office building, focusing on Avenida da Boavista (Porto), Vila do Conde and Lisbon.  Two projects are under construction, and another seven will begin marketing between this year and next.

Residential

It was just at the beginning of the month when Mexto announced that it would invest €20 million in the Portuguese market by the end of the year. The Swiss real estate developer intends to strengthen its presence in Portugal by investing in second-home projects on the coast south of the capital. Mexto, a specialist in luxury rehabilitation, continues to bet heavily on the Portuguese residential market and plans to invest another €20 million next year.

Rio Capital also announced an investment of 8 million euros in the interior of the country. The developer is betting on projects outside Lisbon and Porto and recently announced a new real estate investment. Details of the project in Portalegre will be announced in the coming months. Relying on the agility of the local city council for the necessary approvals, Rio Capital expects to start construction and pre-sales early next year, with completion expected by mid-2023.

Meanwhile, INVARIA announced that it had boosted its housing stock by acquiring a PIP-approved plot of land in Lisbon. The deal will allow the Spanish group to bring another 220 flats to the residential market. INVARIA has a developed plot located in Ameixoeira for residential use for sale.  The project also has the approval to convert one of the plots into a student residence. The project, with no revealed values, will consist of 6 distinct plots.

With the end of September in sight, the real estate investment fund Maya Capital announced its entry in Portugal via a 65-million-euro investment in residential assets. This is the fund’s Iberian platform’s first deal. The assets include seven buildings located in prime areas of Lisbon, which the company plans to redevelop. The mainly residential portfolio is located in four parishes of Lisbon: Misericórdia, Santo António, Santa Maria Maior and Avenidas Novas.

Retirement Homes

During the second half of the month, Thor Spain announced that it had begun operations in Portugal, with plans to develop three retirement homes in an investment of more than 30 million euros. The residences, which have 120 beds each, will be located in Setúbal, Guimarães and Algarve. Each project involves an investment of between 10 million and 14 million euros. Thor had previously announced its intention to expand its operations to the Portuguese market.

Logistics

CORUM announced its acquisition of Nobre’s logistics centre in Rio Maior for an undisclosed amount. The asset has around 9,500 square metres and is the centre of operations for the storage, logistics and distribution of Nobre’s production for Portugal and international markets.

Hotels

On the last day of the month, Mercan Properties announced the inauguration of the “Casa das Lérias” Hotel after an investment of 7 million euros. Located at the beginning of one of the main thoroughfares in the centre of Amarante, the new hotel offers comfort and elegance on the banks of the river Tâmega. The avant-garde building provides an ample exterior space and a harmonious and relaxed interior, ideal for those looking for a service with modern amenities. Casa das Lérias has 23 rooms, including Deluxe, Duplex, Single and Superior.

Alternative Assets

The pan-Mediterranean real estate development and investment management company, OptylonKrea, has launched a €150 million fund. OptylonKrea was named General Partner of the venture capital firm Stag Fund Management to launch the new fund. The Prima Europe Fund is aimed at investors seeking to benefit from the Residence Permit for Investment Activity (ARI) regime, the so-called ‘Gold Visas’, by investing in Prima Collection branded residences.

The Portuguese Real Estate Market in August 2021

September 2, 2021 – Brainsre.news

Although August usually proceeds at a slower pace, with fewer investments and a lull in the news,  last month saw a continuation in the ongoing in the real estate sector in terms of transactions and investments.

As might be deemed fitting for the traditional holiday month, the largest transactions came in the logistics and hotel sectors. Tourism has been rebounding since the Portuguese government announced that it would gradually lift measures imposed to combat the pandemic, and statistical data has revealed Augusta as one of the months with the most significant growth.

Highlighting the month was Insula Capital’s announcement that it launched a €100-million real estate fund during the month’s final days. The fund is aimed at the housing, commercial, retail and hotel sectors. It will seek to take advantage of opportunities in the various industries and acquire assets in Portugal and capitals across Europe, including the UK and Switzerland.

 

Residential

At the very beginning of the month, Vanguard Properties announced that it would invest €15 million in a new development at Tomás Ribeiro 89 in Lisbon. The project is intended for luxury housing. Vanguard acquired and will rehabilitate the building from the 1920s, located in one of the most sought-after areas of Lisbon, on the street that gives its name to the property in the neighbourhood of Avenidas Novas, near the centre of the capital. Tomás Ribeiro 89 has a gross area of around 3,000 m2 and consists of seven floors with one flat each.

Further north, in Aveiro, a new condominium will be built, the Orizzont, which is the result of a 5-million-euro investment, with 12 flats with views of the Ria de Aveiro. It is a closed condominium with three-to-five bedroom flats, a heated swimming pool, a terrace with a 360º view, garden, multipurpose lounge and balconies overlooking the Ria de Aveiro.

 

Offices

The Ageas Portugal Group acquired two new buildings for more than 30 million euros, bringing its portfolio to around ten office buildings by the end of the year. The insurance group announced the acquisition as part of its plan to build a portfolio of high-quality office assets, a sign of real estate investment in the capital.

Classique, one of the office buildings, is located at Avenida Alexandre Herculano N23 and has around 2,250 square metres. Cais, the second building, has around 4,900 m2 and is located in Parque das Nações. The Ageas Portugal Group intends to develop a sustainable investment strategy and actively manage its properties, which is why the two buildings acquired are already leased.

 

Logistics

In mid-August, Sonae Sierra’s SIGI acquired a warehouse for €13.15 million. Olimpo Real Estate Portugal (Ores) acquired a warehouse in Vila Nova de Gaia for 13.15 million euros, the company reported. The property has 21,075 square metres and is leased to the Portuguese transport and logistics company Grupo Luís Simões.

Meanwhile, Sogenave made a €22 million investment in a logistics centre in Barreiro. Built on a 2,100 sqm site, the future building will house a new logistics and distribution centre. According to the local authority, the construction of this logistics and distribution centre for product storage and distribution should start operations in early 2023.

At the end of the month, Garland announced an investment of 30 million euros in a new logistics centre in Vila Nova de Gaia. Garland Logística expects to increase its turnover by 40% with the construction of the property, which will cover an area of 38,000 m2. Set on a 100,000 m2 site, the new logistics centre is excellently located, close to the Arcozelo junction between the A44 and A29 motorways.  Construction is set to conclude in June 2022.

 

Hotels

The hotel sector began the month with the announcement of an investment of 8 million euros in Quinta de Santo António – Country House & Villas, which recently opened to the public. Located in the municipality of Marco de Canaveses, it offers 22 accommodation units and fills a tourism gap in the Douro and Tâmega regions.

Meanwhile, the Azora fund acquired a third luxury hotel in the Algarve after buying two others in July.  The five-star unit is located at Praia das Gaivotas in Porches and has 118 rooms. The size of the investment in Luxury Vilalara was not revealed.

Also in mid-month, the European investment company Catalyst Capital acquired the former Diplomático Hotel in Lisbon for 14.75 million euros. The transaction is part of the new €250 million European hotel investment strategy.

The former Diplomático Hotel is located at Rua Castilho in Lisbon and was acquired from a family-owned company. The company will also invest around €9 million to renovate the asset, transforming it into a 4-star boutique hotel with 95 rooms.