ESUMMIT 20-21SEPT. Real estate investment has already surpassed 1.1 billion

Transcription

1 Newsletter Nº 02 07/09/2016 PORTUGAL ESUMMIT 20-21SEPT. R E A L E S TAT LISBON2016 ORGANIZED BY: Hotel Palácio Estoril PROMEVI PRODUCCIONES, EVENTOS & EXPOSICIONES PORTUGAL R E A L E S TAT E SUMMIT More than 150 investors confirmed for the Portugal Real Estate Summit Representing above all European and North American capital, the investment firms participating in this event include both entities that are already operating in Portugal, and entities that have yet to make investments in our country. Page 02 Real estate investment has already surpassed 1.1 billion Real estate investment in Portugal has surpassed 1.1 billion euros in the first semester, reaching levels that are very close to the activity registered during the same period in 2015 (1.2 billion). Page 03 Asset sales leverage Sonae Sierra s new strategy Committed to reinforcing its position as one of the greatest international experts in shopping centre development and management, the Portuguese corporation Sonae Sierra is focused on selling its own assets to leverage the brand's international expansion. Page 04

2 MORE THAN 150 INVESTORS CONFIRMED FOR THE PORTUGAL REAL ESTATE SUMMIT The countdown has begun for the Portugal Real Estate Summit, which takes off on September 20 in Estoril. For the first time in our country, this will be the largest event dedicated to the real estate investment industry ever to take place in Portugal, with the confirmed attendance of more than 150 leading investors from all over the world. Representing above all European and North American capital, the investment firms participating in this event include both entities that are already operating in Portugal, and entities that have yet to make investments in our country. Giants like Blackstone, Benson Elliot, CBRE Global Investors, Fidelidade-FOSUN, Green Oak, HIG Capital, Lone Star, Merlin SOCIMI, M7 Real Estate, Meyer Bergman, Orion Capital and Patrizia are just some of the international names that have already confirmed their attendance. The company Baía do Tejo, Square Asset Management, Refundos SGFII and Vilamoura World, as well as, in the services field, Auxadi and Broadway Malyan, are some of the national firms that have also secured their participation in the trade fair. Many of these investors are coming to Estoril to become better acquainted with the investment opportunities in Portugal, states António Gil Machado, who represents the Portugal Real Estate Summit organising body. In his opinion, the event provides an excellent opportunity in the international panorama for us to capture a greater portion of global investment. This is the right time to do so, at a moment that is perfect for taking up spaces and investing in real estate. Consumption is recovering, sustained by the rise in tourism in the cities of Lisbon and Porto. Multinationals are discovering our cities to set up their service centres, to the point where there is a lack of quality office space in Lisbon and Porto, he adds. Created to attract the international real estate investment community to the Portuguese market, the Portugal Real Estate Summit also receives extensive support from the main associations and bodies that mobilise real estate investment on a global, European and national scale, including RICS-Royal Institution of Chartered Surveyors, EPRA -European Public Real Estate Association, ULI-Urban Land Institute and ASPRIMA, the real estate developers association of Madrid. ACAI, APPII, APAF and APFIPP are the Portuguese entities associated with this event. Marking its first edition this year, the Portugal Real Estate Summit aims to attract investors from all over the world to get to know firsthand the reasons why the Portuguese market has been asserting itself as a destination for foreign capital. Taking place on September 20 and 21 at the exclusive Hotel Palácio Estoril, the event is co-organised by Vida Imobiliária and Promevi, and has already gathered extensive support from the national real estate industry, obtaining sponsorship from Aguirre Newman, CBRE, Cushman & Wakefield, as well as JLL, Abreu Advogados, MLGTS Advogados, Deloitte, Explorer Investments and the SIL Group.

3 MULTI CORPORATION SELLS NOS HEADQUARTERS IN LISBON Multi Corporation completed a deal with a private Asian investment fund for the sale of the building where the headquarters of the telecommunications and entertainment group NOS are located in Lisbon s Campo Grande district, one of the largest transactions involving a single asset in the office market this year. The seller was advised by JLL, and the amount involved was not revealed. Developed by Multi Corporation specifically to accommodate the headquarters of this Portuguese corporation, the building was constructed in 2012 and totals m² of offices distributed across eight floors, complemented by 581 m² for retail on the ground floor and underground parking for 557 vehicles, 166 of which for public access and managed by Empark. NOS takes up 95% of the area, with the remaining space occupied by five other tenants, among which Caixa Geral de Depósitos and Empark. Prospects for the evolution of take-up in the Lisbon office market are quite encouraging, which was also an attractive factor in the deal. The positive performance of this market has encouraged investor confidence in rental growth, thereby driving demand for this type of assets for investment, comments Tiago Girão, consultant at JLL Capital Markets. REAL ESTATE INVESTMENT HAS ALREADY SURPASSED 1.1 BILLION The office sector is attracting the most capital, approximately 43% of the total in the semester: million euros. Following closely, the retail sector traded a total of million euros, representing 38% of the total transactions this semester. Within this asset class, emphasis goes to shopping centres and supermarkets, which captured investment volumes of 205 and million euros, respectively, plus more than 4.6 million euros negotiated in retail parks and another 4.4 million euros involving investment in high street shops. Real estate investment in Portugal has surpassed 1.1 billion euros in the first semester, reaching levels that are very close to the activity registered during the same period in 2015 (1.2 billion). This data is provided by the consultancy Aguirre Newman, who recorded 35 investment operations. According to Aguirre Newman, the logistics sector captured 44.5 million euros, followed by hotels, with 41.6 million euros, and the residential sector with 18.7 million euros. The consultancy also recorded 126 million euros in transactions that do not fall under any of these asset classes, here referred to as others.

4 CAPITAL ALLOCATED TO RETAIL DECREASES IN THE FIRST SEMESTER After an exceptional year in 2015 regarding investment in retail assets in Europe, in the first semester of 2016, the volume of capital allocated to this asset class registered an overall reduction, and Portugal was no exception. Nonetheless, the outlook is positive, since the levels of activity are still above the average recorded over the past five years, JLL concludes. The direct investment in retail properties in the first six months of 2016 reached 20.7 billion euros in Europe, in other words, 19% less than the 25.5 billion traded in the same period in In Portugal, more than 400 million euros were invested in retail properties in the first semester, representing a decrease of approximately 40% compared with the 665 million recorded in the same period the previous year. However, the consultancy recalls that, like in the rest of Europe, the first semester of 2016 was also exceptional for investment in this segment in our country, representing 70% of the volume invested in this asset class in the whole year (972 million euros). ASSET SALES LEVERAGE SONAE SIERRA S NEW STRATEGY Committed to reinforcing its position as one of the greatest international experts in shopping centre development and management, the Portuguese corporation Sonae Sierra is focused on selling its own assets to leverage the brand s international expansion. Over the last five years, Sonae Sierra has been repositioning its business. Therefore, if during the first twenty years the company acquired experience in developing, marketing and managing its own shopping centres, in this new phase, the brand wants to grow, above all, in the provision of services to third parties, opting to sell some of its portfolio assets to recycle capital, explained the company s CEO, Fernando Guedes de Oliveira. Between 2011 and 2016, the provision of services by Sonae Sierra to third parties (ranging from project development to day-to-day shopping centre management) grew approximately 60%, increasing from 20 to 35 active contracts in locations as far away as South America, North Africa and Asia, as well as, of course, Europe. At the same time, the asset portfolio owned by Sonae Sierra has been decreasing, dropping from 49 in 2011 to 44 assets in 2016, in Portugal, Spain, Italy, Germany, Greece, Romania and Brazil. Among the most recent deals is the sale, last June, of a portfolio of three shopping centres owned by the Sierra Fund in Portugal (Estação Viana Shopping and Algarve Shopping) and Spain (Luz del Tajo), whereby the company maintains the operational management of these spaces. ROCKSPRING INVESTS 53 MILLION DEAL IN LISBON The Edge Group completed a deal with Rockspring, grossing approximately 53 million euros with the sale of two buildings located in the Santos - Cais do Sodré district in Lisbon, which are being regenerated for office use. This information was confirmed by the group s CEO, José Luís Pinto Basto, to the newspaper Expresso. The deal involves two buildings purchased by The Edge Group approximately a year ago: the 24 de Julho building, in Santos, and the D. Luís building, beside Cais do Sodré. The transaction with Rockspring was based on a model of partnership for the development of regeneration projects, in other words, the new owner joins as a partner, financing part of the cost of the project, agreeing to purchase the two buildings once the works are concluded. The Portuguese market is indeed conducive to the entry of foreign capital and we received offers from several funds, among which Spanish, German and English. But some only wanted to join at the end of the works, purchasing the buildings after the regeneration is complete. We ended up selecting Rockspring s proposal, which presented a more interesting model and enables us to leverage capital and plan other investments, explained the CEO. Purchased in July 2015 from Parvalorem (a public company created to recover former claims of the bankrupt BPN), the 24 de Julho building was an auto silo which was closed twenty years ago and will be converted for office use, in a project estimated at 20 million euros (including purchase and construction works), aimed to be completed in the first semester of The approximately m² already have guaranteed occupancy, assigned to the multinational advertising corporation WPP, according to the newspaper Expresso, and were sold to Rockspring for 25 million euros. Currently in a more advanced phase, regeneration of the D. Luís building should be concluded this September, with 75% of its m² already taken up, and it should be 100% occupied by the end of the year, states the group s CEO. Located on Rua do Instituto Industrial, the building was purchased from Millennium bcp last October for 16 million euros, plus another four million in regeneration works; it was now sold to Rockspring for 28 million euros.

5 Confirmed Investment Funds: The Blackstone Green Oak Real Estate Merlin Properties Patrizia Deutsche Bank CBRE Global Investors Benson Elliot Lone Star Boufonds Orion Capital Managers Fidelidade Property Europe H.I.G. Capital Sponsors & Exhibiting Companies: Abreu Advogados Aguirre Newman CBRE Cushman & Wakefield Deloitte Explorer Investments JLL Morais Leitão, Galvão Telles, Soares da Silva Grupo SIL Broadway Malyan Baia do Tejo Square Asset Management M7 Real Estate Auxadi Vilamoura World Refundos... Brochure Download Registration Form For more Information: LISBOA Fontes Pereira de Melo, 6-4º esq Lisboa Telefone: PORTO Rua Gonçalo Cristovão, 185-6º Porto Telefone: