Investment might recover when the pandemic calms down

Investment might recover when the pandemic calms down

Pedro Valente from the Capital Markets Department at Worx said so and he further explained that most investors will not take decisions right now, because they «are assessing the impact» caused by the Covid-19 pandemic on their portfolios. This means that, at the moment, investors are focused on grace period requests and reducing their tenants’ rents.

Given the circumstances, investment in new projects is on stand-by. But there are exceptions, such as operations which were already at an advanced stage of negotiations before the current situation, he revealed.

Despite the support from financial institutions to face the crisis’ economic consequences currently available to investors, Pedro Valente recognises that «the current scenario might become an opportunity for opportunistic investors who, having substantial liquidity, will focus on property owners who cannot fulfil their obligations and are forced to sell».

Another mid-term scenario concerns the yields’ increase, which may translate in an assets’ price decrease. Nevertheless, Pedro Valente considers that «it is still too early to understand whether those price decreases will, in fact, occur and, if they do, on what scale». For now, a «rapid return to business» is expected, he guaranteed.

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