Swiss Investment Foundation AFIAA has acquired the “242 Avenida da Liberdade“ office and commercial building in Lisbon by way of an asset deal. The seller was “Real Added Value PN – Fundo de Investimento Imobiliario Fechado”, a real estate fund managed and represented by Portuguese investment manager Lace Investment Partners. The purchase price was not disclosed.
Built in 1969, the twelve-storey property with a total rental space of approximately 9,600m² was comprehensively modernised in 2018/2019 and has been awarded a grade A “Energy Performance Certificate”, the second-highest classification. The property is situated in a prestigious location in Lisbon’s prime CBD market and provides for excellent transport links. 98% of the total space is currently let to insurance company Generali Seguros Portugal. Earmarked for the AFIAA Global portfolio, the building represents AFIAA’s second investment in the Portuguese capital.
“Our decision to purchase the property was motivated by the long-term tenancy agreement with a financially sound key tenant and the high structural quality of the building. Moreover, the scarcity of space in this submarket suggests high-value stability and medium to long-term upside potential. The attractive risk-return ratio compared to other European core markets, a positive economic outlook and remarkable resilience are all factors in favour of Lisbon. Stable demand for office space even persisted throughout the corona pandemic,” said Sebastian Feix, Head of Transactions at AFIAA.