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Real estate investment closes the year at €3.000M
06 January 2020 | Ana Tavares

Commercial real estate investment in Portugal reached around 3.000 million at the close of 2019.

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The numbers are from Cushman & Wakefield, which calculated 2.750 million euro were invested until the 31st of December, with the last transactions of the year still unaccounted for.

These numbers are similar to those of 2018, consolidating «one more exceptional year, following the records of 2018», commented Eric Van Leuven, the consultant’s CEO for Portugal. The same as in other European markets, investment was only limited by the amount of assets available for trade, and not by the investors’ appetite.

In a very dynamic year, investment in asset portfolios stood out, representing 53% of the capital invested – a total 1.450 million euro divided by 17 deals.

The office segment led the commercial investment, with 36% of all investment, around 990 million euro. Amongst the most relevant operations, were the purchase of FPM 41 by Deka and the Art’s Business Centre’s portfolio and the Torre Fernão de Magalhães building by Merlin.

Retail was a close second, with 35% of all investment at 970 million euro (the values are very close and may still change after the year’s final transactions are taken into account). The purchase of the AlgarveShopping and the Albufeira Retail Park by Frey, for 179 million euro, and the acquisition of the RioSul Shopping, 8ª Avenida and LoureShopping for 170 million euro, should also be highlighted.

But the year’s biggest transaction was within the hotel segment (which had a share of 19%), the sale of the Tivoli portfolio by Minor to Invesco for 313 million euro. The industrial segment represented 4% of all investment and the remaining segments, such as the alternative ones, had a share of 6%. Within the alternative segments, the purchase of 8 student residences by Xior for 160 million euro, stood out.

Foreign investment represented the majority of investment, with German investors representing 32% of all investment for a total 680 million euro. The American investors came next with 300 million euro, followed by the Spanish with 294 million euro invested. The 135% yoy increase in terms of domestic investment at 600 million euro should also be noted.

2020 “moderately optimistic”

The year begins with good prospects, «moderately optimistic», according to Cushman & Wakefield, «due largely to the current international circumstances and to the low interest rates».

It is certain that the «the market’s attractiveness will remain at the same level, as well as the lack of adequate product», and as such, it is estimated that investment in 2020 will also come close to 3.000 million euro, similar the last few years. C&W alone knows that there currently are around 2.000 million euro being traded.

Shared economy will keep boosting new housing and office concepts and the presence of the big insurance companies will be noted, «a very positive sign from these international companies», commented Eric van Leuven.

He also warned about legal stability being decisive towards the investment market’s good performance.