The "Eleanor Project", which is announced as a unique opportunity to create one of the largest investment platforms for residential and tourist real estate development in Portugal, was presented on Monday by Novo Banco, together with consultants CBRE and JLL, which will co-market the project.
In total terms, the portfolio comprises approximately 400,000 square metres and a potential sales volume of 2 billion euros. The portfolio comprises 4 plots of land, all of which are in an advanced stage of licensing, for different types of use. The portfolio represents an investment potential of 1,100 million (with land).
According to Volkert Schmidt, CEO at Novo Banco Real Estate Group, who presented the project in depth, when LoneStar bought Novo Banco the real estate portfolio "was around €3.5 billion, and we currently have €600/700 million, remaining unsold now". He added that "our strategy was to identify the best assets in the portfolio and where we could add more value with planning and architectural design".
The four plots are located in the Lisbon region, namely in the centre of the capital (Amoreiras and Olivais) and in the Algarve, in prime zones (Lagoa and Portimão). In concrete terms, this is a multi-location and mixed use portfolio, allowing to reach different segments and classes of assets.
More than 90 potential investors
The Novo Banco Group points out that, about a month after the communication to the market, they have already received expressions of interest from more than 90 potential investors, given that a large part are international investors, some of which are supported by local entities that act as capital partners and future managers of the development of the various projects.
The four plots of land can be sold together, but also separately. In an interview with Grupo Iberinmo, Nuno Nunes, Head of Capital Markets, points out that "if there is a sum of the parts that is better than selling everything together, there is no objection". As for the investors, the responsible person indicates that "we identify which type of investors may have this type of profile and we invite them to participate in the process".
This first phase, in terms of feeling, "is very much in line with what we already expected: we have several investors that have shown willingness to acquire the assets, as well as investors that want a specific asset", underlines Nuno Nunes. From CBRE's point of view, in the commercial real estate panorama, "what is working best, by far, is property development. There is a lot of dynamism," he points out.
The Amoreiras asset is "the most important in the portfolio
Located in the CBD area of Lisbon, the Amoreiras site plans a total construction area of 133,000 square metres distributed over six residential lots, with a total of 683 homes, and a services lot that can accommodate different uses such as offices or hotels. The project should represent a global investment (with land) of between 600 and 650 million euros.
Entitled as "the best real estate development available in Lisbon", Volkert Schmidt points out that the Amoreiras asset is "the most important in the portfolio, with about 60% of the value". Meanwhile, an "alteration to the approved land division project has been submitted to the local authority in order to improve the global quality of the masterplan", says the responsible, in order to grant a better adaptation to current trends of sustainability, energy efficiency and well-being. The project will allow for the regeneration of two central urban networks, creating new spaces for the local population, including an 11,000 square metre garden.
As for the Olivais Sul project, this is a mixed-use development located in Parque das Nações, in Lisbon, with a total construction potential of 90,000 square metres, distributed over four lots, for a total of 256 residential units. The site also provides for the development of 45,000 sqm of offices, 15,000 sqm for retail and 5,000 sqm for equipment.
Strong presence in prime areas of the Algarve
This portfolio provides an answer to the existing imbalance between supply and demand across all sectors, namely residential, quality offices and differentiated tourist offer, particularly in an area like the Algarve, which continues to assert itself as a world-class tourist destination.
Benagil is another project in the portfolio: the project located in Carvoeiro has a total construction potential of 59,000 sqm. It is planned to develop an eco-resort composed of a hotel (15,000 sqm and 150 rooms), branded residences (31,000 sqm and 386 units), townhouses (16,000 sqm and 242 units) and villas (2,500 m² and five units), as well as 3,000 sqm for equipment. The Land Division and the Environmental Impact Report (EIA) have already been approved.
In the neighbouring municipality of Portimão, Novo Banco is also selling a plot of land located next to the Arade river, and two steps away from the Marina, for which the development of a large-scale mixed use project is planned. The Arade project has a total construction potential of 116,000 sqm, allowing for the creation of 58,000 sqm of housing (652 homes), 39,000 sqm for tourist flats (613 branded residences), 10,000 sqm for a hotel (153 rooms) and a further 9,000 sqm for retail. The EIA and the allotment have already been approved and the infrastructure project has been submitted.
