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Spanish REITs aware of investment opportunities within the Portuguese REITs
29 August 2019 |

The green light was given to the creation of the SIGI (Portuguese REITS) in Portugal, and the Spanish REITS are aware of this investment opportunity in the neighbouring country.

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The opinion is shared by Orson Alcocer, partner in charge of Real Estate Law at DLA Piper. In an interview to El Economista, he advances that at least five companies have already shown interest in getting to know the opportunities the new regime offers.

Amongst these companies is Merlin Properties, which officially announced that it wants to be listed in Portugal before the end of the year, besides «several other companies which want to position themselves in the new listed real estate companies market which will be created in Portugal», where the SIGI may represent around 7.000 million euro within the next 5 years, for a total of around 25 companies, he added.

In addition, according to the same expert, «taking into account the specific characteristics and dynamics of both markets, to be able to invest in listed companies, might attract a new pan-Iberian wave of investors».

Nelson Rêgo, managing director at Prime Yield and in charge of business development at Gloval, points out that Portugal emerges as an investment opportunity for investors who are already present in Spain, a market which «is usually one or two years behind Spain», with a strong demand within the occupancy market. «The yields are a little higher than those of Spain, since it is a country with a higher risk», and historic prime rents for new offices are expected, he highlighted.