Tag: public tenders

IHRU to Acquire Homes in Lisbon, Porto and Algarve

According to a statement on the Portuguese Republic’s official website, the Institute of Housing and Urban Rehabilitation’s (IHRU) strategy is to expand the supply of affordable public housing and ensure access to housing for families with middle incomes.

February 9, 2022 – Ana Custódio

The IHRU’s market consultation for acquiring the real estate ends this Friday,  February 11.

According to a statement on the Portuguese Republic’s official website, the Institute of Housing and Urban Rehabilitation’s (IHRU) strategy is to expand the supply of affordable public housing and ensure access to housing for families with middle incomes.

The market consultation ends on February 11. The properties, residential buildings and flats, must meet the requirements and conditions set out in the announcement. In the municipalities of the metropolitan areas of Lisbon and Porto and the Algarve region, the location is one of the conditions.

Among the criteria are maximum figures per various sized flats. A one-bedroom apartment should have a maximum value of 213,000 euros, while a two-bedroom apartment can reach 295,000 euros. A three-bedroom apartment may cost up to 373,000 euros, and a four-bedroom apartment 430,000 euros.

The announcement also states that proposals may be submitted by any natural or legal person that owns the properties that are the subject of the proposal, as well as duly licensed real estate agencies.

Translation: Richard D K Turner

New Public Works Tenders Down by 21% in 2021

February 2, 2022 – Ana Custódio

The total number of public works tenders in Portugal reached 3.825 billion euros last year.

According to a report today, the Public Works Barometer, by AICCOPN (Association of Civil Construction and Public Works Industries), public works tenders executed throughout the year 2021 totalled 3.825 billion euros. The figure represents a drop of 21% compared to the previous year.

AICCOPN explained that this reduction is primarily because there was a significant number of public works tenders worth €80 million or more in 2020, related to planned investments in the railway and metro network, which totalled €1.126 billion that year.

Contracts concluded and reported in the Base Portal under public tenders in 2021 amounted to €2.713 billion, an 8% decrease y-o-y. Throughout 2021, public works contracts concluded as a result of Direct Adjustments and Prior Consultations totalled 584 million euros, up 2% year-on-year.

Read the full article in Portuguese

Translation: Richard D K Turner

New Public Works Tenders Down by 23% in November

According to the AICCOPN (Association of Civil Construction and Public Works Industries) Public Works Barometer, in the year to November, the volume of signed public works contracts has held steady at the same level as last year.

December 29, 2021 – Ana Custódio

According to the AICCOPN (Association of Civil Construction and Public Works Industries) Public Works Barometer, in the year to November, the volume of signed public works contracts has held steady at the same level as last year.

For the ninth consecutive month, tenders for public works contracts fell year-on-year, compared to 2020.

In the first eleven months of this year, the procedures that were subject to public tender and respective publication in the Official Gazette totalled 3.488 billion euros, down 23% y-o-y.

According to the report published today by AICCOPN, construction contracts concluded and reported on the Base Portal under public tenders totalled 3.476 billion euros up to November, 0.3% that of the same period of the previous year.

This stabilisation in the volume of works contracts is due to a base effect. Last year, two agreements were signed regarding the expansion of the Porto Metro network, worth 288 million euros.

Public works contracts concluded due to Direct Adjustments and Prior Consultations in the first eleven months of the year totalled 550 million euros, up 5% year-on-year. 3.321 billion euros of public works contracts were signed up to the end of November, up 0.3% compared to the same period in 2020.

Translation: Richard D K Turner

 

Public Works Tenders in Portugal Total €3.323 Billion

The number of public works tenders fell by 15% YTD by the end of October.

November 26, 2021 – Ana Custódio

The number of public works tenders fell by 15% YTD by the end of October.

According to AICCOPN’s (Association of Civil Construction and Public Works Industries) Public Works Barometer, public works tenders for the year to the end of October totalled 3.323 billion euros. That figure corresponds to a 15% drop y-o-y, down by 842 million euros compared to the same period in 2020.

Contracts concluded and reported on the Base Portal under public tenders during the same period totalled 2.263 billion euros, 18% higher than last year.

In the first ten months of 2021, public works contracts concluded as a result of Direct Adjustments and Prior Consultations summed 504 million euros, up 15% year-on-year.

Year to date, the total number of public works contracts signed and registered in the Base Portal stood at 3.042 billion euros, a year-on-year increase of 15%, having also fallen compared to the 22% and 33% reported in the previous two months.

Translation: Richard D K Turner

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.

Public Works Tenders Down 15% by End of August

According to an analysis by AICCOPN (Associação dos Industriais da Construção Civil e Obras Públicas), Portugal’s public works market maintained its existing trajectory, with new tenders falling and signed contracts increasing, year-on-year.

September 29, 2021 – Ana Custódio

According to an analysis by AICCOPN (Associação dos Industriais da Construção Civil e Obras Públicas), Portugal’s public works market maintained its existing trajectory, with new tenders falling and signed contracts increasing, year-on-year.

In the year to the end of August, new public works tenders totalled €2.916 billion, down 15% y-o-y, maintaining a six-month streak of consecutive year-on-year declines.

Contracts signed and reported in the Base Portal under public tenders totalled 1.93 billion euros, up 41% compared to the same period in 2020.

According to AICCOPN, public works contracts concluded as a result of Direct Adjustments and Prior Consultations reached 400 million euros, up 19% year-on-year

As a whole, the total number of public works contracts signed in the year to August’s end stood at 2.617 billion euros (+33%).

Translation: Richard D K Turner

Public Works Tenders Fell in July

August 27, 2021 – Ana Custódio

The total volume of public works tenders held fell by 20%.

The volume of tenders held fell for the fifth consecutive month, despite an increase in signed public works contracts signed. According to AICCOPN’s Public Works Barometer, the total volume of public works tenders held dropped by 20% y-o-y to reach 2.516 billion euros.

The number of tenders announced in the Official Gazette declined for the fifth consecutive month.

Public procurement contracts signed and reported in Portugal’s Base Portal up to the end of July totalled 1.789 billion euros, an increase of 46% y-o-y.

Public works contracts concluded due to Direct Adjustments and Prior Consultations in the same period totalled 341 million euros, up 23% year-on-year.

The total amount of public works contracts signed during the first seven months of 2021 stood at 2.254 billion euros, an increase of 32% compared to the same period of the previous year.

Translation: Richard D K Turner

Government Launches Tender for Concession of the Hotel Turismo da Guarda

July 27, 2021 – Ana Custódio

Closed for several years, the hotel was one of the first properties put to tender under the Revive programme.

A new tender was launched for the Hotel Turismo da Guarda under the Revive programme. In May 2018, a concession contract was signed for the recovery and operation of this property by the consortium composed of the companies MRG Property, S.A. and MRG – Construction, S.A. Financial difficulties afflicting the group, however, prevented the project from going ahead.

The Portuguese government subsequently revoked the contract, according to an announcement on the Portuguese official website. Now, it has launched a new tender to finally give new life to the iconic building in the city of Guarda, designed by architect Vasco Regaleira in 1936.

The announcement of the new tender for the concession of the Hotel Turismo da Guarda is now awaiting publication in the Diário da República and the Official Journal. Closed for several years, the Hotel Turismo da Guarda was one of the first buildings tendered under the Revive programme.

For a minimum annual rent of 35,317.80 euros, the property will be awarded as a 50-year concession. Interested investors will have 120 days to submit a proposal. In addition to refurbishing the property, the winner would be required to promote its recovery through tourism and contribute to attracting tourists to the region and generating new dynamics in the local economy.

The Hotel Turismo da Guarda was one of the 33 properties in the initial batch of the REVIVE programme, an initiative of the Ministries of Economy, Culture, Finance and Defence. The programme, which has the collaboration of local authorities and is coordinated by Turismo de Portugal, aims to recover and enhance vacant public properties and strengthen the attractiveness of regional destinations.

The second edition of Revive was launched in 2019. Sixteen new properties were added. Another three have already joined the list in 2021. The programme currently includes a total of 52 properties, 22 of them in low density areas.

The concession of 18 of these properties has already been awarded, representing more than 138 million euros of private investment in the recovery of public assets and annual rents of around 2.4 million euros.

Translation: Richard D K Turner

Public Works Tenders Decrease While Contracts Rise in June

New public works tenders fell by 18% in June. Conversely, Public Works Contracts signed in the month rose by 47% y-o-y.

July 26, 2021 – Ana Custódio

New public works tenders fell by 18% in June. Conversely, Public Works Contracts signed in the month rose by 47% y-o-y.

The data was presented today by AICCOPN (Associação dos Industriais da Construção Civil e Obras Públicas), in its Public Works Barometer.

The total volume of public works tenders in June and the year fell for the fourth consecutive month to 2.201 billion euros.  This figure corresponds to a drop of 18% compared to the same period in 2020.

As reported in the Base Portal, signed construction contracts for public tenders totalled 1.506 billion euros in the first half of 2021. That figure was up 66% y-o-y, maintaining the trend of the last few months.

AICCOPN also reported that public works contracts awarded due to Direct Adjustments and Prior Consultations reached 277 million euros in the first six months of the year, 27% more than the total in the same period last year.

The total number of contracts signed over the first half of 2021, as a whole, stood at €1.893 billion, up 47% compared to the same period of 2020.

Translation: Richard D K Turner

Lisbon City Council Approves Construction of School for €7.5 Million

July 20, 2021 – Ana Custódio

Lisbon’s City Council has approved the construction of a school in Parque das Nações.

The Lisbon City Council unanimously approved the launch of a public tender to build the Parque das Nações Primary School 1, with a base price of 7.5 million euros.

The deadline for completion is 1,095 days, and the base price of the public tender is 7.5 million euros, according to the website Construir.

The proposal, which was considered at a private meeting of the local authority, was approved by all the political forces that make up the executive.

According to Jornal de Negócios, the local authority stated that the new school, including a kindergarten, aims to “respond to an existing gap in educational provision for the age groups covered” in a parish with over 20,000 inhabitants.

Translation: Richard D K Turner