According to Savills, this «very strong» first quarter reached 1.500 million euro, representing close to 50% of all investment during the years of 2018 and 2019. This number is justified by the conclusion of large transactions in the retail, office and hotel segments.
Paulo Silva, Head of Country at Savills Portugal, explained in a release that «Covid-19 had a significant impact on the real estate market, with the retail and hotel segment having been the most significantly impacted. Despite the uncertainty as to a potential second wave and its control, there is an important dynamic in terms of assets to be developed which highlights the investors’ confidence on the mid to long-term».
In total, 25 transactions were carried out during the semester, 5 of them concerned offices, retail and hotel portfolios, for a total of more than 1.200 million euro, representing 81% of all investment during the semester. During April, May and June, only office transactions were concluded.
This number of deals represents a 19% y-o-y drop, with portfolio transactions maintaining the same number as in 2019.
Foreign capital continued to dominate the Portuguese markets, representing 76% of all concluded operations. American investors lead the rank of nations which invested the most.
Insurance companies lead in investment tickets
During this semester, insurance companies registered the highest investment tickets, with around 800 million euro in 3 transactions.
The highlight goes to the sale of 50% of Fundo Sonae Sierra which included shopping centres Colombo, Vasco da Gama, Cascais Shopping and Norteshopping for an estimated 750 million euro, acquired by German insurance company Allianz and by Finnish insurance company Ellos.
Investment assets’ management funds also stood out, having been the main players with 40% of the deals, representing 350 million euro.
Private equity transactions represented a total of 32% of all operations. Domestic investment represented around 50%.