Sonae Sierra diversifies into real estate fund management

Sonae Sierra, which has a portfolio of shopping centres in Portugal and across Europe, is to develop and manage assets not just in retail but also in other property assets such as offices, housing, supermarkets, hotels and hospitals.

The reasoning behind the diversification strategy is because the “shopping centre market in Europe is mature with few possibilities for growth”, says Fernando Guedes de Oliveira, CEO of Sonae during a presentation of the company’s new strategy.
“In the majority of European markets the feeling is that the market is mature and so therefore there will not be many more opportunities to develop shopping centres”, he told RTP.
Fernando Guedes de Oliveira said that the company’s new strategy is to increase investment fund management focusing on various segments of the real estate sector. At present, Sonae Sierra has €8Bn of assets under management, an amount which could increase to €10Bn by 2025.
Currently, €1Bn is from the retail (shopping centres) area, which will increase to €3Bn over the next three years.
The company has also announced a new partnership with NOS to create a smart cities project.