DEGI Deutsche Gesellschaft fÃ¼r Immobilienfonds mbH is investing for the first time in an office building in Portugalâs capital. For a total investment of around €21.8 mln, the âExpo Towerâ is being incorporated in DEGI INTERNATIONALâs portfolio. The fund thus now owns properties in six of Europeâs major cities, and in South Korea.
Prime location in an up-and-coming submarket
The ellipsoidal Expo Tower is located in the established submarket of Parque das NaÃ§Ãµes on the former Exhibition Centre of 1998, featuring significantly more than 170,000 mÂ² of office space, and located about five kilometres away from the city centre, in the immediate vicinity of Vasco da Gama bridge and the airport, and in contrast to the city centre it offers modern, generously dimensioned office buildings designed to international standards. The motorway can be reached with ease. Thanks to its location on the Avenida D. JoÃ£o II directly next to the new Gare do Oriente station, the property is conveniently placed for rapid-transit and long-distance rail travel. In the immediate vicinity there are office buildings, hotels and one of the countryâs most popular shopping centres. The 13-storey building incorporates 6,216 mÂ² of ultra-modern office space, plus underground parking for 105 cars. The property is complete, and secured by long-term tenancy agreements with Portugalâs leading travel agent EspÃrito Santo Viagens and Portugal Telecom ComunicaÃ§Ãµes. âThe current rents are below the market level for such high-quality office space, which is why we are upbeat about the propertyâs rental price potential. Whatâs more, office rentals in Lisbon are expected to rise in the medium term overall, due to continuing harmonisation of Europeâs office marketsâ, says DEGI Managing Director Malcolm Morgan, explaining the thinking behind this investment.
Portugalâs investment centre
Lisbon is the business centre of Portugal: around a third of the total population here creates almost half of Portugalâs GDP. More than three-quarters of direct investment from abroad in Portugal, for instance, goes to the capital. With approximately 2.5 mln mÂ² of offices, Lisbon is Portugalâs largest market for office space. The average proportion of unoccupied premises is around 9.5%.