Commercial property investments to reach a “record €2 billion”

Real estate specialists Cushman & Wakefield (C&W) expect commercial property investments to reach a record amount of €2 billion this year in Portugal.

Cited by Expresso newspaper, C&W reveals that an unprecedented €1.3 billion was invested in Portuguese commercial real estate in the first 10 months of the year – €640 million of which was invested in the purchase of shopping centres.

In May, American real estate investment group Blackstone announced the purchase of two malls in Portugal, the Almada Forum and Forum Montijo. The deal was reported to have been worth around €200 million – €100 million for each mall.

And just last week, the Alaska Permanent Fund (APF) took over 50% of the Allegro Setúbal shopping centre.

According to C&W’s data, foreign investors represent 90% of the capital invested in Portugal this year. American investors account for most of the investments, around €600 million, followed by Spanish businesspeople who have spent €200 million on Portuguese commercial real estate.

Expresso newspaper also points out that Portugal is expecting a number of major shopping centres to open in the coming years, such as the IKEA mega complex in Loulé which is slated to open in 2017.

Lisbon is expecting to open a new shopping centre in Sete Rios, as well as planning expansion for Forte Nova in Benfica and the Oeiras Parque. Nova Arcada in Braga is also expected to open in 2016.

By MICHAEL BRUXO michael.bruxo@algarveresident.com