The buildings are Art and Torre Fernão de Magalhães, in Parque das Nações, with a total combined GLA of almost 30.000 sqm (22.150 sqm for Art, with an occupancy of 97% and 7.835 sqm for TFM, with an occupancy of 100%). The two buildings have tenants such as BNP Paribas, Huawei, Sage, DHL, Bold International or Webhelp.

Cushman & Wakefield, who represented the buildings’ seller, an international foreign investor, accompanied the sale.

António Camilo-Alves, Associate and in charge of Business Space investment for the Capital Markets team at Cushman & Wakefield in Portugal, comments that «this transaction was carried out with a record yield for Parque das Nações, which confirms the investors appetite for the Lisbon office sector. Parque das Nações is one of the most sought after office locations by investors, which is justified by a very strong occupational market with very little vacancy. With this combination of factors it is without surprise that we keep seeing core investors purchasing properties in this location».

With this acquisition, the REIT increases its office portfolio in Lisbon to more than 100.000 sqm, according to the release quoted by Spanish El Economista. The company explains that «2018 was our most dynamic year in Portugal during the last decade, with more than 200.000 sqm contracted, as a consequence of positive macroeconomic circumstances, an attractive tax regime for retaining talent, a competitive job market and an excellent standard of living, which is generating a strong demand from shared services and call centre multinational companies».

Currently Merlin has 8 office buildings in Lisbon, 5 of which in Parque das Nações. In this last purchase, the purchase price allows for a gross profitability of 5.4% over the rents, with a potential market level profitability of 6.5%, according to the same newspaper.

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