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Merlin Buys Galp’s HQ & Another Property In Lisbon For €103M

15 March 2016 – Expansión

The Socimi Merlin Properties has purchased two properties in Lisbon, one of which is leased in its entirety to the oil firm Galp, for a combined total of €103 million, and has whereby strengthened its presence in the Portuguese capital, where it has an office portfolio comprising three buildings with a total leasable surface area of 42,842 m2.

The real estate company has explained that the acquisition price was fully paid down using own funds, and so the acquisition will generate an initial gross yield of 7.4% and an initial net yield of 6.5%.

Specifically, Merlin has acquired the Monumental building (pictured above), located in Plaza Duque de Saldanha – in the heart of the city’s financial district -, with a total leasable surfacea area of 22,387 m2, comprising offices and retail space. 89% of the offices are leased, to domestic and international firms, such as KPMG, Marsh and Mercer. Meanwhile, the retail area has 41 outlets.

The other property it has acquired is the Torre A Building, with a surface area of 13,715 m2, spread over 16 floors and leased to Galp under a long-term contract. Torre A forms part of another office complex, which contains eight buildings that have a surface area of more than 70,000 m2 and 1,683 parking spaces.

Merlin, which focuses on the Iberian market, made its debut in Portugal last June with the acquisition of an office building in Lisbon for €18 million.

The office building, located in the Expo area, is fully leased to Novabase. Meanwhile, Fidelity has notified the CNMV that it holds a 3.55% stake in Merlin, which is worth €117 million at the current share price.

Original story: Expansión (by Rebeca Arroyo)

Translation: Carmel Drake

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