CBRE Portugal has announced that it has exceeded its target of 25 million euros transacted in small and medium-sized income properties.
This set of transactions, in the segment known as MidCaps, relates to more than 11,500 square metres of real estate in the Greater Lisbon and Greater Porto region, distributed heterogeneously across various sectors, such as offices, retail, warehousing or alternatives.
The MidCaps deals that CBRE has already completed over the course of 2023 include the sale of the European University's Carnide Campus to an investment fund for 5.5 million euros; the sale of the former Castill cinema building, located on one of Lisbon's most emblematic streets, for a sale price of over 2 million euros; and the sale of a number of units in an office building in Parque das Nações, totalling 600 square metres and worth approximately 3 million euros. In addition to these operations, a portfolio of three retail units (Continente, Leroy Merlin and Supermercado DIA) previously owned by a Portuguese owner was sold to a local investment fund.
According to the consultancy, the profitability of these businesses varies according to the type or location of the assets, with yields of between 5.5% and 7.5%. And it highlights the "high resilience" shown by small and medium-sized income property, "especially when there is a context of greater instability".
Nuno Nunes, Senior Director of Capital Markets at CBRE Portugal, said in a statement that "the reinforcement of our activity in this market segment responds to the realisation that small and medium-sized commercial properties (MidCaps), in the current market context, represent a refuge investment for a certain type of investor, who are typically family offices, Portuguese funds or private investors who want to diversify their investment portfolio and gain security in an inflationary and more volatile context".
"As a property consultancy we want to broaden our footprint and support all types of investors in all categories of property products, regardless of the size of the operation," adds Nuno Nunes.