Portugal Sale of Lisbon Buildings Attracts Several Investors

Portugal’s sale of nine buildings in the Lisbon city center has sparked the interest of several family offices and institutional investors, the state-owned unit that manages the properties said.

“There have already been demonstrations of interest from institutional and the so-called foreign family offices,” Francisco Cal, president of Estamo-Participacoes Imobiliarias SA, the real-estate unit of holding company Parpublica said by e-mail. If successful, the sale of the 37.25 million-euro ($46 million) office portfolio will be Estamo’s biggest real-estate deal this year.

Interest in Portuguese real estate has been on the rise after the country emerged from a recession last year and completed a three-year bailout program in May. Spending on commercial properties will increase to as much as 800 million euros this year from 322 million euros in 2013, according to estimates by broker Cushman & Wakefield Inc.

Lisbon is leading the way as a tourism boom provides the money and incentive to convert whole buildings into shops and hotels. Cal declined to provide details about the potential bidders for the buildings.

The 33,646 square-meter (362,163 square-foot) office portfolio includes four buildings that occupy a whole block in the capital city’s downtown area, an 18th-century riverfront property once used to store tons of cereals that arrived by boat in Lisbon and a glass-clad building in the city’s central business district. Investors have until Dec. 9 to submit their offers, Cal said.

Estamo forecasts so-called contracted sales will rise to almost 60 million euros this year from 15 million euros last year, according to Cal.

Before it's here, it's on the Bloomberg Terminal.