Property deal of 2022 was €800M

 In Commercial Real Estate, News, Real Estate

The best property deal in Portugal for last year netted over €800 million according to CNN.

And the five next commercial real estate sales of the year raked in €100 million or over for 2022 in one of the few areas of the Portuguese economy (tourism and exports of goods also did well) which bucked the recessionary trend in 2022.
It means that investors, mostly overseas ones, continue to see Portugal’s commercial property market as a safe bet and hedge against inflation, and falling revenues in other asset classes.
That said, property market pundits suggest that 2023 will not bring in such a bonanza from bricks and mortar with the year likely to be a challenge.
Overall, real estate investment markets will emerge from a period of uncertainty. Pricing should stabilise and activity should return, but conditions will remain challenging for the deployment of equity and debt capital and will require investors to adapt.
Nationally, “Despite the number of adverse factors such as the armed conflict in Ukraine, and increase in inflation and interest rates as a result, 2022 will have been a vey good year in terms of (commercial) real estate investment”, says Nuno Nunes, CBRE Portugal’s director of Capital Markets in a statement to ECO.
The year will close with a real estate investment turnover of between €2.7Bn and €3Bn. However, the deterioration of market conditions throughout the year, with most deals being completed or in the main phases of the deal agreed in the first half of 2022 even through contracts were signed in the second half of 2022,” says Nuno Nunes.
“2023 will be a quite challenging year despite investors still having a fair amount of liquidity, many risk factors will continue to bring much uncertainty regarding performance and the pricing of assets.”
2023 will see a “sharp slowdown in activity” with a recovery likely to happen gradually, with the main risk and adaptation factors to the reality of the new market stabilising for both sellers and buyers”.

6 Big deals of 2022

Project Crow: Sale of ECS Capital (Asset management company, restructuring funds and hotel assets) to Davidson Kempner. (€800M)
Connect portfolio: Logistics assets sold by Novobanco via its subsidiary GNB Real Estate to Blackstone. (€208M)
Smart Studios Residences: Student residences in Lisbon sold to Round Hill Capital for €200M.
Atrium Saldanha shopping gallery and offies in Lisbon purchased by Sonae Sierra from Imosal (Kostas) for €170m
Linda Portfolio: Logistics assets purchased by Blackstone from M7 Real Estate for €120.8 million, and will be managed by Logicor (Blackstone). €120.8M
Novobanco HQ: Purchased by Merlin Properties. (€112.2M)