Tag: new investments

Mondego Capital Partners Invests €45 Million in Downtown Lisbon

6 January 2021

Mondego Capital Partners has increased its portfolio of real estate developments by acquiring several new projects, in a total investment of 45 million euros.

The investment consists of developing luxury residential projects in the centre of the Portuguese capital, in neighbourhoods such as Chiado, Marquês de Pombal and Baixa de Lisboa. These acquisitions follow on the heels of Mondego’s purchase of two buildings in Baixa-Chiado in July for 20 million euros. Mondego Capital Partners has already invested 67 million euros this year.

In a statement, the developer noted that these acquisitions are part of its strategy to invest more than 100 million euros in the Portuguese real estate market, with Lisbon and Porto as the primary sites for residential and hotel development projects.

Gonçalo Ahrens Teixeira, a partner in the real estate development company, said that “despite some delay due to the pandemic, with the recovery this quarter – these acquisitions were closed in December – the €100 million will certainly be fully invested in 2021.”.

Original Story:  Jornal de Negócios

Translation: Richard Turner

Brookfield Asset Management in Joint Venture with Temprano Capital

20 January 2020 – Brookfield Asset Management’s Strategic Real Estate Partners II has formed a partnership with Temprano Capital Partners to invest in the market for student housing in Portugal and Spain. The two firms announced that they would develop 19 new student residences.

The Canadian fund has taken control of Temprano Capital, committing to conclude 25-year lease contracts for 19 student residences in Portugal and Spain. The joint venture has also secured an option to acquire the assets at a later date, including a total of more than 8,000 beds.

As part of the transaction, the new firm will take immediate operational control, through the triple-net leases, of 3three assets. The assets include the Collegiate Madrid Aravaca; the Collegiate Marina Real (Valencia) and the Livensa Living Barcelona Diagonal Alto. Also, in separate transactions, the two companies agreed on other projects will total 1,000 additional beds, increasing the capacity to a total of 9,000 beds.

Original Story: Economia Online – Rita Neto

Translation/Summary: Richard D. Turner

Pestana to Open Ten New Hotels Just Next Year

17 December 2019 – The Pestana Hotel Group announced its intention to open ten new hotels next year while investing a total of 250 million euros in developing another 3,500 rooms by 2025. The new ventures will include four hotels and two pousadas (inns) in Portugal, three Pestana CR7 outside of Portugal and a new hotel in Morocco.

The Pestana brand is looking to consolidate its brand in Lisbon’s urban segment. The group will thus open two hotels and a pousada in the city, with a total of 250 new rooms and 20 million euros in investments.

Pestana will also open two more units, Pestana Douro and Pousada do Porto, in Porto. The hotels will have a total of 300 rooms and 30 million euros in investments. The hotel chain also intends further investments in the Algarve, Madeira and the Azores next year.

Original Story: Visão

Adaptation/Translation: Richard D. K. Turner

Pestana CR7 Invests 60 Million Euros in New Hotel in Paris

12 September 2018

The Pestana group, in partnership with Cristiano Ronaldo, is set to open its sixth Pestana CR7 hotel in Paris, France, in a 60-million-euro investment, the company announced in a statement.

The four-star hotel, due to open in 2021, will have 210 rooms and will be the brand’s “largest to date. It will be located on the Left Bank, near the Seine, between the Austerlitz and Lyon train stations,” according to the same document.

At the moment, the hotel is in the “preliminary licensing phase”, the Portuguese hotel group stated.

“Like the other five Pestana CR7 Lifestyle Hotels, this is a 50-50 investment partnership between the Pestana Hotel Group and Cristiano Ronaldo,” in which the hotel will be managed by the hotel group, the source said.

The football star said that “it makes perfect sense for the Pestana CR7 brand to open in Paris, one of the most visited cities in the world.” In turn, José Roquette, Chief Development Officer of the Pestana Hotel Group stated that “with this achievement, we are on the way to doubling the brand’s size, with a largely international expansion that reinforces its global visibility.”

The Pestana CR7 Lifestyle Hotels brand currently has two units in Lisbon and Funchal, but openings are planned in Madrid, New York, Marrakech and Paris for a total of 800 rooms, the hotel group said.

Globally, and after these inaugurations, Pestana will have more than 90 units operating in 15 countries.

Original Story: JM Madeira

Translation: Richard Turner

Ceetrus to Invest €550MM Over Five Years in Portugal

5 June 2018

Ceetrus Portugal, formerly known as Immochan Portugal, has planned investments of €550-million over a five-year period, ” one-tenth of what invests the group internationally,” the company’s CEO, Mario Costa, said today. The new company is ceasing to be just the real estate arm of the large commercial distributor, to become an active real estate developer in every segment, not just commercial centres, but also housing, offices, leisure centres and urban infrastructure.

The €550MM-investment will include the “acquisition of assets for transforming, land, construction costs and all associated project development and service costs,” Ms Costa stated on the day the new international brand of the Auchan group’s real estate company was revealed.

After presenting the new brand, Ms Costa recalled that the bet on “diverse, multipurpose projects,” had been carried out since the strategic plan’s inception in 2016.

The company’s strategy will reveal its strategy for diversifying its operation in Portugal by the end of the year. “We are working hard on some projects which will become public knowledge later this year,” the executive said, adding that they are “new real estate projects in the areas in which we are now operating: mixed-use projects for offices, restaurants and retail.”

“We will take our multi-purpose functionality to these new spaces,” Ms Costa stated, noting that the Alegro Setúbal venue has an area for sports, a health clinic and play area for children.

The acquisition of Forum Montijo, Forum Sintra and Sintra Retail Park: one of the “largest financial transactions” in the sector

Ceetrus has 393 shopping centres worldwide and, following its new strategy, also has a housing project in Romania, is participating in the construction of a railway station in Vigo (Spain), and has a residential district and offices in Lille.

In March, while still known as Immochan, the company announced a two- to three-million euro investment in the three shopping centres it acquired in Portugal for 411 million euros, and a study of the construction of two new assets.

The acquisition of Forum Montijo, Sintra Forum and Sintra Retail Park was one of the “largest financial transactions” in the sector in Portugal in recent times, Ms Costa stated, adding that the acquisitions were due to the need to “accelerate the growth” of the group in Portugal, taking into account its strategic plans for 2030.

At that time, she referred to plans to invest two to three million euros for improvements on the three shopping centres.

Also, Mário Costa said, the company has “the construction of two new assets” located in the Greater Lisbon area in its pipeline. Construction may begin within five years, although the company gave no further details.

The executive also stated that the acquisition of the three shopping centres in Portugal strengthened the group’s position in the Portuguese market, noting that the number of visitors to the shopping malls is growing by 2% per year.

Immochan has been in business for more than 40 years and is present in 12 countries. The group owns almost 400 shopping centres, representing four million square meters of gross leasable area (GLA).

Original Story: Lusa / Diário Imobiliário

Translation: Richard Turner

17 New Hotels to Open in Porto

21 April 2018

The boom in investment in the tourism sector has yet to fade. The city of Porto currently has 17 new hotels in its pipeline.

The historic and central areas of the city are the focus of fifteen possible investments, which are currently in the licensing process at the municipality, Confidencial Imobiliário revealed. Two new hotels are also planned in the parish of Bonfim.

JN/Dinheiro Vivo learned that Pestana, the largest hotel group in the country, is scheduled to open three new hotels in Porto by the end of next year. The first to open will be in the well-known Casa Navarro building, in Baixa, which was acquired by the David Rosas family. This 46-room unit, scheduled to open this year, will be under Pestana’s management. Using the same business model, in which the investment is undertaken by the property owner and the hotel group manages the hotel’s operation, Pestana will open an 87-room hotel in Rua das Flores in 2019.

The Portuguese group has planned an investment of 20 million euros in the construction of the Douro Hotel, in Freixo, close to the pousada that it also manages. This project, which includes 165 rooms, is expected to be completed in 2019. Last month, Pestana Porto – A Brasileira also opened. The building and investment, in the order of €12 million, was the responsibility of the owner, the former soccer coach António Oliveira, leaving Pestana in charge of the management of the unit.

Axis Hotels is also preparing its inaugural hotel in Porto. According to the executive, Rui Barbosa da Costa, the Portuguese group, which already operates six hotels, wants to open a hotel with “a minimum of 100 rooms” in the city.

The Spanish group Catalonia chose Porto as the location of its first investment in Portugal. It is preparing to invest €14 million in a four-star unit on the Praça da Batalha. The group bought five buildings of historical interest for rehabilitation by 2020.

Original Story: Jornal de Notícias – Sónia Santos Pereira

Photo: Ivo Pereira / Global Imagens

Translation: Richard Turner

 

With a Two Million Euro Acquisition, Entrecampos Begins Operations in Portugal

10 January 2018

Investments in commercial real estate in Portugal reached 1.9 billion euros in 2017, 50% more than the 1.254 billion invested in the previous year.

Entrecampos Cuatro was the first socimi to debut on the Alternative Stock Market (MAB) in 2013, and it is continuing to expand its portfolio of assets. The Spanish REIT has now gone one step further, opting to enter the Portuguese real estate market in search of new assets. The company according to statements to EjePrime, has acquired its first position in the Portuguese market through the purchase of a residential and commercial building for 1.9 million euros.

On December 21, Entrecampos Cuatro Socimi’s formalised its first acquisition in Portugal, a building located at 384 Rua Sao Bento, one of the most central areas of the Portuguese capital. The property, as an official source at the group explained, will undergo restoration works, similar to many of the company’s other investments.

The acquired building is composed of five residences and a retail area on the ground floor, with an above-ground area that measures 406 square meters, which the company will place on the rental market once the renovations have been completed.

The price of the acquisition was 1.95 million euros, and the socimi “estimates that the total monthly revenues from the lease of all the units of the building will amount to approximately 10,000 euros, a profitability of roughly 6.15%.” Entrecampos Cuatro Socimi carried out the acquisition through a newly created Portuguese company 100% owned by the Spanish firm.

“The purchase was carried out using the group’s funds and through the use of a 1.8-million-euro corporate loan granted by a Spanish financial institution, with a term of three years and an initial interest rate of 1%,” the group added.

Office buildings account for 40.5% of the socimi’s portfolio of assets

Entrecampos is one of the veteran socimis on the Spanish market. The company has been linked to the real estate business since 1958, although the Segura Rodríguez family decided to create a new firm five years ago, grouping properties that owned in several Spanish provinces and Berlin, accumulated during several decades of work as a developer.

The company debuted on the stock market with a value of 1.59 euros per share and a valuation of 86.9 million euros. At the time its portfolio of assets was valued at 102 million, although in recent years the socimi has been growing its holdings through the acquisition of new properties.

Among its latest deals are a financial leasing operation with an option to purchase an office building in the La Marina Business Park in San Sebastian de los Reyes, north of Madrid, for 8.6 million euros, and a retail store in Madrid’s Golden Mile, where the company paid 4.5 million euros for the property at 87 Velázquez Street.

The total investment in commercial real estate in Portugal reached 1.9 billion euros in 2017

Currently, office buildings account for 40.5% of the socimi’s portfolio of assets, with more than 26,000 square meters of area. Residential holdings account for 24% of the portfolio (15,505 square meters) and the retail for 23.8% (15,382 square meters). The remaining 11% is divided into assets such as retirement homes, leased plots of land and others.

Portugal, a focus of commercial real estate investment

Portugal has aroused the interest of real estate investors in recent years. Investment in commercial real estate in Portugal reached 1.9 billion euros in 2017, 50% more than the 1.254 billion spent the previous year.

According to preliminary data provided by the real estate consultancy JLL, the investments were mainly in the retail sector (37%) and offices (33%), while the logistics sector quadrupled its participation to 17%.

The report also highlights that 68% of the activity was carried out by investment funds, of which nine out of ten were from outside Portugal. The growth in real estate investment was accompanied by an increase in the number of transactions and a consequent rise in prices and rents, but in a sustained manner.

Original Story: EjePrime – C. Pareja

Translation: Richard Turner