Square AM spends more than €30M on new acquisitions

Square AM spends more than €30M on new acquisitions

One of the acquisitions was multi-housing building ExpoLiving, marketed by consultant JLL and located near Parque das Nações, in Lisbon, at number 2 Rua dos Argonautas.

The building has 11 floors above the ground and 4 below the ground (where it offers 155 parking spots) and it has a 20.000 sqm built area. It hosts the Residências Montepio (on the bottom five floors – from 0 to 4) and housing apartments rented to private citizens in floors 5 to 9. On the tenth floor, there is a terrace with a view over the river, green areas and a gym.

This operation alone cost the Portuguese management company around 21 million euro, according to the Savills. This is this value was paid to Swiss GMG Real Estate, which since now was the owner of the building. The operation’s yield should be around 4%.

«This transaction proves not only the real estate market’s ability to resist under adverse circumstances such as the growing attractiveness of the Living alternative segment in our market. Expo Living is an excellent example of this segment, integrating two of its main products: senior residences, which are a type of asset that already has consistent demand and private renting which is starting to spike the interest of investors for the opportunities it presents on a market that is not yet very institutionalised. There are several ongoing negotiations within the Living segment, which is seen as the most resilient against the market’s negative cycles and should have some news this year», commented in a release Fernando Ferreira, Head of Capital Markets at JLL.

More than €10M for logistics

Logistics was the other segment on which Square AM decided to invest during the first quarter, a segment which has been one of the most resilient against the effects of the pandemic crisis.

The asset traded is a Greenyard unit, located in Torres Novas. According to information advanced by the same consultant, this unit has a total combined area of 16.000 sqm and was purchased from TN Park for between 10 and 15 million euro. This operation was advised by Cushman & Wakefield on behalf of the seller.

As far as VI/IP was able to ascertain, both operations are yet to be reported to CMVM by the management company.

This is one more step towards Square AM consolidating its investment in the country based on risk diversification. It should be recalled that during an interview to VI/IP Pedro Coelho, the company’s vice- president and CEO, revealed that one of the «secrets» to ensure consistency in investment returns is to «invest in a balanced way», which includes «diversifying risk amongst all segments, tenants, directions and geographies».

Last Update 4/11/2020 at 10:44 a.m

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