Real estate investment falls 30%
Commercial real estate investment in Portugal was 30% down in 2021 on the previous year, netting around €2Bn.
Nevertheless, 2020 had been better precisely because of so many uncompleted transactions that had been in the pipeline from 2019 – a bumper year which netted around €3Bn.
According to the consultants Cushman & Wakefield Portugal (CEO Eric van Leuven pictured), and based on deals to December 2021, the consultants revealed that 70% of the capital invested had come from overseas, while Portuguese investment stood at €550 million.
Paulo Sarmento, Partner and Director of Capital Markets told journalists “we have very few logistics or residential properties bought as investments to rent. If we had had more supply, we would have had a greater overall turnover of investment, and also more overseas investment”.
According to C&W, 39% of investment was from the offices segment, and 34% from alternative segments. Hotels were responsible for 15%, while retail had little significance on the figures at all. “In fact, we haven’t been involved in shopping centre transactions for almost two years,” he said.
From among the big ticket deals of the year, the sale of part of Quinta da Fonte for €130 million, the sale of a portfolio of residential assets (PRS) from the hotels Tivoli Marina Vilamoura, and Tivoli Carveiro for €148 million and, more recently a portfolio from the fund Saudeinveste (private hospitals) for €213 million stand out.
Paulo Sarmento highlights that 2021 closed with a record yield which demonstrates “if we had had more assets of this kind, the value of healthcare transactions would have been much higher.”
As to development and urban rehabilitation, €465 million was invested in 2021, 10% down on 2020. Among the large projects in this category was the Norfin acquisition of Project Vilamoura for €125 million, or the sale by Millennium bcp of the Grupo Pestana Madeira Palácio project for a total of €45 million.