Novo Banco sells its headquarters on Avenida da Liberdade for €112.2M

Novo Banco sells its headquarters on Avenida da Liberdade for €112.2M

Novo Banco informed the CMVM of the sale of the head office building to Spanish Merlin Properties, located on Avenida da Liberdade, in Lisbon, for the sum of 112.2 million euros: «after completion of a competitive sale process, [the bank] celebrated a Promise of Purchase and Sale Agreement (CPCV) for the sale of the building of its current headquarters located on Avenida da Liberdade in Lisbon», according to a statement, quoted by Idealista/news.

This transaction should have a positive impact of 55 million on net income for 2022. As announced, this sale is part of the «measures to accelerate the divestment of non-core assets, should result in an increase of c.40 bp in capital ratios'.

It should be remembered that the new headquarters of Novo Banco, in Tagus Park, is currently under construction.

Merlin will additionally invest 40 million euros in the modernization of the building, according to Negócios.

Merlin's CEO, in statements to Idealista/news, indicated that he intends to transform the building into a "premium" office asset, «the idea is to submit the property to a very deep renovation and make a magnificent office building at the level of an excellent location. it has, where, moreover, there is no quality offer», said Ismael Clemente, adding that this will be «a purely office building, with shops on the ground floor».

According to Ismael Clemente, regarding the deadlines for the remodeling works, «these are impossible predictions to make when it comes to processing licenses with the Lisbon City Council». He also adds that a concrete cost estimate can only be made when the project is finished.

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