Real estate consultants Cushman & Wakefield Healey & Baker (C&W/H&B) and Aguirre Newman announced yesterday the sale of the landmark office development Entrecampos 28, located in the heart of Lisbon's Central Business District.
C&W/H&B structured the sale on behalf of the owner, Vision Escritórios, a registered real estate investment fund managed by Norfin. Aguirre Newman acted on behalf of the German purchaser, DEGI International, part of the Allianz Group.
The multi-storey office complex, recognizable for its impressive mirror façade, comprises 3 interlinked office buildings with a total gross lettable area of 11,300 m². The office space is 100% let to Portugal Telecom until 2010.
The final transaction value was over 43,300,000 making this the largest office investment in Portugal in 2005.
Carlos Moedas, the Portuguese Managing Director for Aguirre Newman comments: "DEGI has in a short period of time acquired two landmark assets in Lisbon which by itself is a major achievement in a market where prime investment product becomes rare. Entrecampos 28 is one of a kind product combining secure lease with a strong covenant with state-.of-art engineering and architecture".
Tim Seconde of Cushman & Wakefield Healey & Baker's Lisbon Capital Markets team comments: "Right across Europe, office investments with an adequate lot size and secure leases to financially strong covenants are rare and highly sought-after. Lisbon is no exception and this is driving the record yields now being achieved in this market."
"Portuguese funds are becoming more and more sophisticated and whereas they have traditionally focussed entirely on acquisition, some are now discussing the correct timing for maximising value on disposal."
In 2002, Cushman & Wakefield Healey & Baker acquired the property for Vision Escritórios from the developer, Grupo Amorim.