NPLS FUNDS BRANDS PRIME YIELD WEDDINGS - PORTUGAL ON THE MOVE
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Nº14 April / June 2021
PORTUGAL ON THE MOVE
BUSINESS
NPLS
Awaiting the avalanche
FUNDS
Investors more cautious
BRANDS
Supporting Portuguese events
PRIME YIELD
Adding value
WEDDINGS
The lost year
April / June 2021 €3.00
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Unique International Curriculum
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Welcome to Essential Business, the 14th edition of the magazine. Tel.: +351 219 158 150
geral@grafisol.pt
In this issue, we highlight the importance of large, televised sporting and music events for brands Lisbon Office
in conveying their products and corporate messages to different audiences. We have focused on Av. Engenheiro Duarte Pacheco, Torre 2, 10º, Fracção 11
1070-101 Lisboa
two events in Portugal: The Millennium Estoril Open which brands have decided to continue Tel (+351) 213 224 812
supporting this year in spite of no live spectators, and Rock in Rio, which although sadly has been essential.lisboa@open-media.net
cancelled this year, will return next year. We speak to João Stilwell Zilhão, partner of what has Algarve Office
become Portugal’s most famous tennis tournament, and Roberta Medina, the businesswoman Apartado 59,
and producer of what is now one of the world’s most successful music festivals. Parque Empresarial Algarve 7, 8401-901 Lagoa
Tel (+351) 282 341 333 Fax (+351) 282 341 360
But brands do not confine their partnerships to events. The increasing trend for major interna- essential.algarve@open-media.net
tional luxury lifestyle brands to become associated with residential properties has reached
London Office
Portugal. We take a look at how major hotel chain brands are putting their exclusive names to 40 Craven Street, Charing Cross
branded residences, in both Lisbon and the Algarve. Essential Business also speaks to the London WC2N 5NG, England
managing director of the Portuguese Association of Resorts, Pedro Fontainhas, about why Tel: +44 (0) 207 389 0527
Portugal’s top-quality resorts are becoming even more desirable during Covid-19, as overseas Distribuição
retired and relocated second-home buyers place a premium on space in low population density VASP - Distribuidora de Publicações, Lda
MLP: Media Logistics Park
areas in some of Portugal’s most beautiful places. Quinta do Grajal - Venda Seca
After the disaster that was 2020 and the first quarter of 2021, some of the moratoria granted to 2739-511 Agualva Cacém
businesses will end, and with them, an expected avalanche of credit defaults or Non-Performing Tel (+351 214 337 000
geral@vasp.pt
Loans is looming. We speak to Nelson Rêgo, director of Prime Yield (Gloval) who knows the NPL
market in Portugal well and how profits can be made from restructuring businesses that, for one Published by
OpenMedia Europe S.A.
reason or another, have found it impossible to continue without external support.
Yet for all the business and tourism uncertainty last year, and so far for 2021, Portugal’s commer- Periodicy
Trimonthly
cial property assets look set to continue to enjoy the fairly strong demand from institutional and
family office investors that it has had over the past four years. Essential Business asks both Nelson Circulation
6000
Rêgo of Prime Yield and Eric van Leuven of Cushman & Wakefield what is in store for Portugal’s
property market this year and beyond, and talks to several experts on the Portuguese real estate C.E.O.
Miguel Ladeira Santos
investment market.
Chris Graeme, Editor
While every effort has been made to mantain the integrity of
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Publicação registada na Entidade Reguladora para a Comunicação Social com o
A revista Essential Business pretende dar a conhecer à comunidade empresarial e internacional em Portugal e a quem visita o país em trabalho, para eventos profissionais número 127106. DirectorCátia Matos Propriedade Open Media Europe S.A.
ou para investimento, a realidade e atualidade sobre negócios em Portugal. NIF 515462063 Administrador/Presidente do Conselho de Administração
Miguel Ladeira Santos
Enquanto temas relacionados com a imobiliária e o turismo são uma presença constante, a revista e os seus suportes digitais cobrem todas as áreas de negócio, incluindo 1 - É garantida a liberdade de imprensa, nos termos da Constituição e da lei.
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A revista Essential Business assume o compromisso de assegurar o respeito pelos princípios deontológicos e pela ética profissional dos jornalistas, assim como pela 3 - O exercício destes direitos não pode ser impedido ou limitado por qualquer
boa-fé dos leitores. tipo ou forma de censura.
www.essential-business.pt 4
Essential Features
8 News
MEGA PROJECTS FOR GREATER LISBON
10 NPLs
EVERY CLOUD HAS A SILVER LINING
14 EU Presidency
EUROPEAN RECOVERY
16 Renting your property?
TRUST EXPERTS
10
18 Rock in Rio
BIG FOR BRANDS
18 34
24 Portuguese funds
A SAFE BET
30 Angola
THE UK’S NEW TRADING PARTNER?
32 AmCham
PORTUGAL-US TRADE AT AN ALL TIME HIGH
34 Estoril Open
NOT JUST ABOUT THE TENNIS
38 Prime Yield
A BIG PLAYER IN IBERIA
24
40 Property development
STRANGLED BY TAXATION?
42 W Residences Algarve
PORTUGAL’S FIRST LUXURY LIFESTYLE BRAND
46 Residential resorts
COVID-19 BOOSTS INTEREST
48 Going to the chapel?
PORTUGAL’S WEDDING DAY BLUES
52 Portugal’s debt management
HAS IT BEEN DERAILED?
62
54 Being a consul
A DREAM JOB
56 António Cardoso e Cunha
THE VISIONARY WHO CHANGED LISBON
58 Thales Portugal
PORTUGAL’S PARTNER FOR TRANSPORT INNOVATION
60 The Mindful Business Charter
TACKLING STRESS AT WORK
62 International Club of Portugal
A SHINING EXAMPLE OF ASSOCIATIVISM 48
www.essential-business.pt 6
Essential News Essential News
Oeiras Council spearheads marina mega project
Oeiras Municipal Council is to spearhead a mega marina project at Cruz Quebrada on Portugal’s
upmarket Cascais-Estoril riviera.
The project promises to breathe new life into the area with a mixed upmarket development that will not only include the
yachting and boating marina, but also apartments, offices, shops and eateries.
An operation to sub-divide parcels of land earmarked for the construction of the project called ‘Porto Cruz’ has just completed
the public consultation phase.
Oeiras Municipal Council will require a bank guarantee from the landowner for the development of the mega project on the
Foz de Jamor before granting a development licence for the project and all its amenities.
In the technical dossier that accompanies the process, it states that the council will “condition the deeds of the urban building
operations, the building area and ensure the schedule for the construction timetable for the riverfront, and that the bank
guarantee should cover the construction of the same”.
According to the council’s urban planning services, “the current scheduled work on the parcels of land will have significant
impacts on the use of the area to the extent that the full use of the development in terms of quality, and without compro-
mising the harmony of the territory in which it finds itself will only take place when the marina and other associated infra-
structures are in place."
Oeiras Municipal Council says that the project is “indispensable” since there should be a marina at Cruz Quebrada. The land
on which the marina will be developed is owned by the real estate group SIL.
The parcels of land are currently occupied by the former premises of Lusalite and Gist-Brocades but will be transformed into
five plots on which six buildings for housing, with 325 homes in a private condominium project will be developed. There will
also be a hotel, offices and commercial units.
The architectural side of the project will be coordinated by Miguel Amado Arquitectos and also will feature 55,000m2 of
green spaces, a cycle path, a light railway that will link Jamor and Lisbon, and new road and pedestrian links to the coastal
road known as the Marginal that links Lisbon, Oeiras, Estoril and Cascais.
Almada megacity development
A new megacity projected for the South bank of megaproject that is now much more ambitious in a common strategy
Lisbon’s Tagus river at Almada will involve an initial between the council and investors.
€800 million investment and could create 17,000 Among the landowners and investors who have shown an interest in
the innovative potential of ‘Innovation District’ are companies such as
new jobs.
Cordialequation, Rustik Puzzle, SOSTATE, Maia e Pereira, Emerging
The ‘Innovation District’ project from the NOVA University Lisbon and Ocean, Rio Capital, Orbisribalta, the Serra Henriques Foundation and
a group of landowners with land and property in the area of Monte the Egas Moniz Higher Education Cooperative.
da Caparica and Porto Brandão promises to create a new centre that Neither an estimation of total costs nor a full execution timeline to
will attract international companies and investment to the greater complete the ‘Innovation District’ was given.
Lisbon area.
“The main assets in the knowledge economy are people, their talent
and the networks they establish among themselves, and this is at the
heart of ‘Innovation District,'" said the vice-dean of NOVA University
Lisbon, José Ferreira Machado, at the project’s presentation, adding that
he foresaw the completion of the first phase of the project by 2030.
And since people need “places to live and interact, places where they
can reside, work, talk and enjoy leisure time, cities like the one that will
be developed in Almada will serve to reinforce the internationalisation
of the greater Lisbon area,” he continued.
The vice-dean of NOVA University Lisbon added that some projects,
such as the works at the Technology and Science Faculty — the building
of sports facilities and a shopping area which are Phase 1 of the
innovation hub — should start this year given that “part of the financing
comes from European community funds and must be applied by 2023."
Chair of Almada Council, Inês de Medeiros, emphasised the involve-
ment of public and private investors, both national and overseas,
in adapting what had been initially more modest projects into a
www.essential-business.pt 8 www.essential-business.pt 9
Essential Assets
Where there’s muck
there’s money
Non-performing loans (NPLs) have increased significantly in Portugal, but also
across Europe since the financial crisis in 2008. But Portugal’s banks are in
much better shape to deal with the fallout from the current health crisis,
and for some companies, there’s money to be made from default portfolios
TExT CHRIS GRAEME
B etween 2008 and 2014 Portugal’s
banks suffered a veritable rash of
Non-Performing Loans (NPLs).
hard work achieved by the banks in
recent years.
The ratings agency Moody’s forecasts
for the Portuguese economy as a whole,
which grew 2.2% (0.4 pp year-on-year),
the banking system showed considerable
This had been mainly due to poor that bank NPLs will increase by around improvement in terms of efficiency,
supervision and governance, aggressive 9% with the end of the moratorium, com- liquidity, asset quality profitability and
lending and acquisition strategies, loose pared to 5.5% in 2020 and the Bank of solvency, and had been quite successful
credit underwriting policies, high expo- Portugal concurs. in clearing around €20 billion in NPLs
sure to sectors that were most impacted Nevertheless, Portugal’s banks have off its balance sheets.
by the financial crisis (such as real estate set aside a buffer of up to €2Bn to offset According to the Portuguese Banking
and in Portugal over-leveraged tourism the expected exposure. Caixa Geral de Association (APB) solvency was strongly
resorts) and lax credit controls. Depósitos alone has set aside €300 reinforced: CET1 reached 14.3% in 2019
After some years of improvement, the million to cover “credit default and other (versus Core Tier 1 of 7.4% in 2010),
situation looks set to deteriorate again, unexpected impairments” resulting from liquidity (loan-to-deposit ratio of 87-1%
with the prolonged economic downturn the pandemic. versus 158.7% in June 2010; liquidity
pushing highly leveraged borrowers into And just as well. In the first nine coverage ratio at 218.5%; although still
financial difficulties and leading to a months of last year, the net results of low, profitability improved (RoE reached
large number of defaults. Portugal’s banks plummeted 65% to 4.9%); non-performing loans had an
Increased regulatory requirements for €588 million like-for-like on 2019 be- impressive downwards development in
NPL management (including the Euro- cause of the pandemic and the money set Portugal, falling by €33.3 billion since
pean Central Bank (ECB) Asset Quality side for impairments. the maximum level of €50 billion in
Reviews, harmonisation of NPL classi- The Association of Portuguese Banks June 2016.
fication and disclosures, and the intro- (APB) in its summary for Q4, 2020 states
duction of specific NPL codes and that the total offset for eventual impair-
ments stood at €2.05Bn, which corres-
AIMING FOR A SOFT LANDING
directives, have also contributed to the The president of the Portuguese
increase in the overall NPL pool in ponds to an increase of 66%. In this Banking Association, Fernando Faria de
Europe as a whole. context, the profitability of the banks has Oliveira, says that the impacts of the
And with the end of moratoria in again suffered a setback with profitability recession on the banking sector, its profi-
Portugal from September this year (the ratios of around 1.7% when for the same tability, and in terms of an increase in
government is discussing extending it period in 2019 it was 6.2%. The ratio for loan defaults and therefore NPLs/NPEs
with banks for some cases until 2022), covering NPLs was boosted to 55.9%. In (Non-Performing Exposures) is inevitable
the Portuguese banking sector is likely to 2019 it stood at 51.5%. and will only be fully felt when the mora-
suffer a rash of credit defaults and bank- The asset quality of Portuguese banks toria, granted in line with the guidelines
ruptcies, as loans and interest once again has improved significantly over the past set out by the European Banking Author-
have to be paid, undoing some of the 4 years. As of June 2019, a bumper year ity (EBA) and viewed by it as a tool to
www.essential-business.pt 11
Essential Assets Essential Assets
avoid cash-flow problems and not insol- the General Managing Director of the cream in Portuguese) from Novo Banco. further €6.9Bn of national NPL stock
vencies, finally end. company that has offices/representations Presumably, the ‘cream’ was less than coming on line," says Prime Yield’s
It is why the Portuguese banking in Lisbon, Madrid, São Paulo, Maputo, fresh. Francisco Virgolino. "To get some idea,
sector has always argued that the ending Luanda, Cape Verde and Athens. This time, again, the fund involved that amount corresponds to more than
of the moratoria should be done in a Despite the fall, investor interest in was Davidson Kempner and the portfolio, half of the current stock of NPLs in the
“planned and phased manner” to ensure this type of asset has remained, however, called ‘Project Ellis’ was for sale at €170 system. However, this impact will only be
a “soft landing” and avoid a “cliff-edge” and the sale of NPL portfolios is million, while a second portfolio, ‘Project visible by the end of the year, and espe-
occurrence resulting from companies expected to step up in the first half of Webb’ was sold to the fund Arrow for cially in 2022."
which, despite being viable, might not, this year. €450 million.
by the end of the moratoria, be in a “Since January, the sector has already Francisco Virgolino, Head and Part-
seen portfolio deals worth €700 million,
UNDER PRESSURE
condition to generate enough cash-flow ner of NPL&REO Portugal at Prime The Portuguese banking sector will
to meet their loan obligations. while another €1.2 billion is already in Yield says: “Naturally, the pandemic continue to feel under strong pressure in
“In Portugal, despite the banks having the pipeline, including ones that are has delayed or even required the restruc- 2021. Despite the expected economic
increased cash provisions to offset credit already being negotiated or are already on turing of various NPL sale processes recovery, whenever it comes, the “burden
defaults risks, it is difficult to calculate the market,” says Rego. in 2020.” of non-performing loans will weigh
the potentially disruptive effects of the For example, Novo Banco announced Despite a slowdown being expected heavily on its financial institutions this
withdrawal of the moratoria, how the in March that it had signed a purchasing last year in the market, in the region of - year,” according to the Canadian rating
quality of assets will evolve, and the and sale contract with Burlington Loan 25% to around €6,000, 2020 was a rough agency DBRS.
extent of losses,” says Faria de Oliveira. Management DAC, a company linked to year for the sector with less than €1 “Banks in Portugal continued to re-
“Those banks with larger capital and advised by Davidson Kempner Euro- billion transacted. duce NPLs by €9 million in 2020, how-
ratios and less ratios of NPLs will, natu- pean Partners LLP based in Ireland, for “The market was almost at a standstill ever, Portugal’s banks still hold high levels
rally, be in a better state to face the fall- a portfolio of NPLs and assets with a until September when we noticed some of NPLs and have high NPL ratios rela-
out from the crisis while planning and nominal value of €216.3 million in renewed activity and various deals began tive to other European banks and above
monetary, fiscal, prudential and recovery December 2020. to be closed towards the end of the year,” the average of our sample," DBRS states.
support mechanisms are all determining According to the bank owned by US adds Virgolino. “Some €46 billion in loans are frozen
factors in dealing with the crisis and off- vulture fund Lone Star and managed by due to the moratoria regime (EBA) and
setting its effects on the Portuguese António Ramalho, this operation should THE OUTLOOK FOR 2021 there are many concerns about how
banking sector,” adds Portugal’s bank have a direct (and positive) impact on The Managing Director and Head much of this volume can turn into NPLs.
association chief. the results and capital of the institution of Portfolio Valuation at Prime Yield The real impact will only become visible
this year. (Gloval), Nelson Rego, thinks that 2021 from Q4 2021, but we think that 15% of
BETTER PREPARED Last year, Novo Banco had other should be a dynamic year. current loans in moratoria could become
Paulo Macedo, the CEO of state-run portfolio sale processes underway, “On the one hand, business from NPLs,” says Rego.
bank Caixa Geral de Depósitos, which is namely ‘Project Carter’ comprising 2020 coming through is progressing at a “This would mean another €6.9
preparing the sale of €450 million in 12,000 loans that had been sold to the healthy rate, with close to €2 billion billion entering the stock, which then
NPLs, says that Portugal’s banking CRC fund in a consortium with Arrow. worth of portfolios on the market from would go up to over €20.0 billion, bring-
system is much better prepared and This involved a portfolio of NPLs amongst operations that have already ing “fresh” portfolios to the market. So,
capitalised to overcome the current crisis with a price tag of €79 million, but been achieved, and others that have been even though there is all this uncertainty
and have an active role in assisting the which ended up being sold for €37 either identified or are currently under- around when the moratoria will end, one
country’s economic recovery. million. The bank said at the time that way," Rego says. thing is certain: the NPL stock will grow
The sale of NPL portfolios in Portu- the deal had been “marginally positive” “On the other, apart from the growing in Portugal over the next 18 months, as
gal was down by 87.5% to €1 billion in and had a “direct impact” on its capital. interest from investors in this segment, well as the potential for deals. And
2020, according to the real estate evalua- And in February this year, bank BPI the offer of NPL portfolios should grow investors are keeping track of events to
tion and asset advisory consultant Prime sold an NPL portfolio for €300 million considerably this year,” he adds find out where the best opportunities will
Yield’s latest market study ‘Keep an Eye to the European-wide Luxembourg based Rego also points out that with the end lie,” concludes Nelson Rego, Managing
on the NPL & REO Markets’ (Real fund LX Partners (LXP), an entity that of the moratoria in September, an ava- Director and Head of Portfolio Valuation
Estate Owned). describes itself as “a principal investor lanche of credit defaults is expected, of Prime Yield.
“Activity in Portugal represented a no- whose mission is to provide its partners while the pressure will be kept up on One thing is for sure, whenever the
table fall (87.5%) on the volume of with exposure to opportunities at arm’s banks to deleverage their stagnant and moratoria finally come to an end, a large
around €8 billion transacted in 2019, as length, with preferred terms”. underperforming assets, so new and very proportion of borrowers, both companies
a result of a direct impact of the pan- Millennium bcp, another bank with a interesting operations in market offer and families and individuals, will resume
demic which froze operations and redi- large presence in Portugal, was busy last should appear. payments on loans and interest, but the
rected focus on the financial system and year preparing to sell a portfolio of NPLs “According to the Prime Yield fore- capacity of those borrowers to make
government’s extraordinary financial to the same fund that had purchased the cast undertaken for the study, if 15% of payments will depend on the economic
support for the Portuguese economy rather curiously named portfolio for the amount subject to moratoria ends up shock experienced in Portugal later this
through moratoria,” says Nelson Rego, distressed assets ‘Nata 2’ (‘Nata’ means as Non-Performing Loans, that means a year and into 2022. 쐽
www.essential-business.pt 12 www.essential-business.pt 13
Essential Recovery Essential Recovery
Portugal’s presidency in practice would considerably reduce Portugal has been ranked the third most The focus is on developing the infra-
focuses on Europe’s recovery the firing range of that ‘bazooka’.
Reducing the industry’s carbon foot-
print is one big focus for the RRF for
2021-2026 in order to align Portugal’s
positive contributor.
And a report by the BBC found that
Portugal was an early leader in investing
in a full network of charging stations for
structure needed for the next generation
of tech start-ups, as well as growing
the right skills base and improving
cybersecurity.
economy with climate and green targets electric cars and that it has incentivised The initiative, spawned in 2018, is
In January 2021, Portugal took over the rotating presidency of the Council of the EU with set out in the European Ecological Pact. citizens to install solar power and renew- hoped to have a tangible impact on eco-
the motto ‘Time to Deliver: a fair, green and digital recovery’. Portugal is, in fact, more These European funds are earmarked able energy with lower rates and the nomic growth, education, and innovation
able, prepared and willing to use its €12.9Bn share of the EU’s €672.5Bn Recovery for entrepreneurs and business owners opportunity to sell energy back to the grid. in Portugal.
who aim to make structural changes to Portugal also intends to double its Portugal has embarked on a National
and Resilience Mechanism on greening and digitalising its economy their production processes, anti-climate renewable energy production by 2030 Reforms Programme which puts digitali-
TExT CHRIS GRAEME change measures, low carbon processes, mainly through solar energy, under sation, IoT (Internet of Things), mobility
electrification of industrial processes that Portugal’s National Energy and Climate and technology startups at its core.
are powered by hydrogen and renewable Plan 2030.
provide Portugal with a significant oppor- gases, and adopting energy-saving measu- In fact, Portugal’s dependence on coal, TRANSPORT AND MOBILITY
tunity to address the growth challenge res in production processes which use gas and oil has fallen considerably over the In terms of mobility, Portugal has also
that it faces," says Sarah Carlson, senior alternative energy sources including wind, past decades, and in 2018 actually mana- placed transport policy, particularly air
vice president for sovereign risk at ratings solar and biomass. ged to power the country for three days on and rail transport, near the top of its
agency Moody's. According to the Road to Carbon the trot from renewables alone. EU presidency agenda, both nationally
The analyst also points out that Por- Neutrality 2050 (Roteiro para a Neutra- and in Europe.
tugal is one of the larger recipients of the lidade Carbónica), industrial emissions GOING DIGITAL On the back of European Year of Rail
EU Recovery and Resilience funds in represent around one-fifth of emissions The Portuguese government says it Transport in 2021 and as head of the
nominal terms, standing to net €13.2Bn. in Portugal, of which 62% result from also will use EU funds to continue digi- EU’s Transport Council, Portugal aims to
Whereas some larger countries are recei- burning fossil fuels and 38% from indus- talising its administrative systems in the contribute to the rapid recovery of the
ving more in nominal terms, in terms of trial processes. This is particularly true of public sector while offering incentives to transport sector by ensuring operational
a percentage of GDP, Portugal is a very the cement, mortar, glass and ceramics companies to digitise their processes. capacity in different modes and the flow
important recipient of these funds which industries as well as chemical and paper In this, it has already made a good of people and goods in the Union.
will, says the Moody’s analyst, help “ramp industries. start, first by netting the world’s largest It will also lead and accompany the
up the country’s green and digital transi- Nevertheless, Portugal is frequently tech and startups fair Web Summit preparation of an EU Contingency Plan
tions” (The EC wants 37% of these funds touted as one of the greenest countries which moved from Dublin to Lisbon in to deal with pandemics and other disrup-
to be used for ‘greening’ the economy). in Europe and is often singled out for its 2016 which is now its permanent home, tive crises, and pave the way for a more
“Portugal is a great example of an EU positive ecological contribution with over for the time being, anyway. ecological, efficient and resilient trans-
country with a backlog of public invest- 50% of national energy consumption In 2020 Portugal launched its Natio- port sector in Europe.
ment projects and has a very good track coming from green sources (wind and nal Digital Action Plan which lays down In aviation, the Single European Sky
record of being able to absorb EU funds, hydroelectric 46%, biomass 5% and the actions the country will take in lead- project initiative aims to increase the
I n February the European Commission
welcomed the European Parliament’s
vote confirming the political agreement
Portugal’s three main priorities for its
presidency are: promoting a European
economic recovery, the green and digital
which is not necessarily the case in all
countries,” says Carlson, giving Spain and
Italy as examples.
solar 1.5%).
Wind power has been a particular
winner with wind capacity and genera-
ing the transition.
The fourth pillar of the Portuguese
Presidency focuses on the Digital Servi-
efficiency of air traffic management and
air navigation services by reducing the
fragmentation of European airspace. By
reached on the Recovery and Resilience transition of Europe’s economy, the Portugal has €9 billion to use bet- tion growing rapidly in Portugal. ces Act, which the European Commis- its nature, this ongoing initiative is pan-
Facility (RRF) of December 2020. It implementation of the European Pillar of ween this year and 2022 with another Wind power adoption in Portugal sion adopted just before the end of 2020. European and open to neighbouring
marked an important step towards mak- Social Rights, and strengthening the €3.9 billion defined in June 2022 depen- began in the early 2000s, incentivised by “This has been a long-term political countries.
ing €672.5Bn in loans and grants avail- strategic trade autonomy of a Europe ding on the evolution of its GDP over the a continuous feed-in tariff policy mecha- goal for Portugal for some time and we Portugal already has one of the most
able to Member States to support reforms open to the world. However, it is the first next two years. nism, coupled with public tenders for have legislative files of enormous impor- advanced and modern motorway sys-
and investments of which Portugal will that is grabbing the attention of headlines Last year, when Portugal’s prime mi- connection licenses in 2001, 2002, and tance to deal with during our presidency,” tems in Europe, and although the Com-
benefit from nearly €13Bn. worldwide and this is not surprising given nister António Costa made his famous 2005 and beyond. These policies led to says Ricardo Castanheira, digital coun- mission’s ongoing strategy for intelligent
The RRF is the key instrument at the the circumstances of a Western Euro- ‘bazooka’ remark to describe EU emer- enormous success in terms of having a sellor coordinator at the Permanent Rep- and sustainable mobility through digita-
heart of NextGenerationEU, the EU’s pean Economy damaged by the ravages gency funds to support Europe’s recovery, large share of renewables providing elec- resentation of Portugal to the European lisation to create safer and greener
plan for emerging stronger from the of a largely invisible enemy - Covid-19. the amounts to which he was referring tricity services: wind alone accounts Union (REPER). highways is still part of the work of Por-
Covid-19 pandemic. are a small parcel of the total amount (an today for around 23.5% of electricity de- The Portuguese government also tugal's presidency, the Covid-19 pan-
Over the next six months, Portugal GOING GREENING estimated 22%). He also said at the time mand in Portugal. signed a memorandum of understanding demic has derailed plans and forced a
will lead work at all levels of the Council, “The next generation of EU recovery that the government did not intend, for According to the Good Country (MoU) with US multinational Cisco temporary re-focus on combating its
building co-operation between EU mem- funds — €15.3Bn in grants, including the time being, to use the part which Index, which aims to measure the impact to drive a programme of country-wide immediate negative effects on the trans-
ber states. €13.2Bn between now and 2023 — will constitutes the loan from the RRF, which a single country has on the wider world, digitalisation. port sector. 쐽
www.essential-business.pt 14 www.essential-business.pt 15
Essential Property Essential Property
is becoming an emerging asset class. At tive profitability. At the outset, someone
MVGM International, we view this who runs a business can conclude that if “ACCORDING TO SEVERAL
decade as a key moment to revive and everything goes well, local accommoda- STUDIES ABOUT REAL
professionalise the residential market in tion is more profitable than a medium to
Portugal. Until now, investors have long-length lease. However, this profi-
ESTATE IN PORTUGAL,
shown a preference for Built to Sell tability is only apparent. Local accommo- CONSTRUCTION OF
projects, but we believe the market is at dation has a lot more variables which can RESIDENTIAL BUILDINGS
a turning point where new enterprises influence income: occupation, touristic FOR LEASE PROMISES IS
will be envisioned and built specifically flow, weather, and the popularity of the
for the leasing market, inherently enhan- destination. Also due to the pandemic, BECOMING AN EMERGING
cing the role of the professional property some investors turned from short to ASSET CLASS.”
manager. medium rentals – 2 weeks to a month.
Market tendencies naturally depend The main problem with these medium-
on the government, the profile of the term businesses is that utilities are
investor and tax issues. Decisions aren’t included. After you factor in water,
obvious, so it’s becoming increasingly electricity, cleaning, internet and other
important – and profitable – to invest in costs, your outcome will not be as
real estate. Rather than immediately sell- profitable as you anticipated. Basically,
ing, owners are rethinking their invest- you’ll have the costs of the short term but
ments for the long run, instead of the conditions of the long run, which will
thinking about immediate profit. be harmful to your investment.
Even though we’re going to enter an In our property management, we seek market trends and their effects; possible
Rent with the help of experts economic crisis, people will always need
somewhere to live. Keeping this in mind,
those privileged enough to have funds to
invest should really consider doing it.
to give our clients all the economic, social
and health context they need to make
informed decisions. We create a long-
term relationship of trust: we know they
threats to the profitability of the lease,
and all variables that influence it, includ-
ing government decisions.
The reality is that most people who
a pandemic-proof investment But, why rent and not sell? And, more
specifically, why lease and not turn my
property into a tourist accommodation?
treat our house well, we know they will
pay rent on time and we know what to
expect from that relationship. At the end
own properties also have their daytime
jobs and aren’t available for their tenants
24/7. Above all, having this professional
As stated above, an investor can Build of the day, people don’t really need to go assistance means knowing that the pro-
Miguel Kreiseler, Managing Director of MVGM Portugal, explains why professional to Sell and then pursue another project on holiday, but they do need somewhere perty is being taken care of, no matter
property management is important for property investors even in a pandemic, freeing or can Build to Rent and convert that to live. where you are and what you’re doing. It’s
project into a renting asset for the long This is where it gets tricky. So, I have having a safety net, which keeps the
their time to focus on other professional activities or real estate projects run. At MVGM we deal mainly with a property asset and made the adminis- owner up to date with everything they
OPINION MIGUEL KREISELER investors who buy a property to monetise. trative decision not to sell it, and to lease need to know to have the most successful
When they decide to do so, they also rather than turning it into a short-term outcome.
have to pick whether they want to put it rental. But how do I decide everything Of course, the quick-fix solution
M ore than ever, people are begin-
ning to realise the importance of
having someone specialised in their area
today. Take the example of health: for
minor issues, we have a tendency to self-
medicate (most of the time wrongly), but
money in our company, the teacher who
helps our children learn to read, the
cardiologist who assures everything is all
in the short, medium or long term mar-
ket. This decision is all about weighing
potential risks and rewards and being
else? This is where professional assis-
tance becomes decisive.
For the property’s owner, this profes-
exists. But this isn’t how markets work,
and it surely isn’t how we operate at
MVGM. As H. L. Mencken said, “For
of expertise by their side. The global as soon as it gets scary, we seek profes- right with our heart… and it’s no diffe- able to see beyond the one-year time sional assistance means having someone every complex problem there is an
pandemic we are living in is teaching us sional guidance and consult with a rent in real estate. There are many frame. In ten years, which decision who guides and advises them at every answer that is clear, simple, and wrong”.
that being surrounded by experts leads to doctor. If we do that with our bodies, why branches in our sector but I would like to would I regret? step of the way. The list of examples of It is our duty as specialists to be available
a proper and more strategic response to wouldn’t we do that with everything else focus on a particular one: professional Due to the Covid-19 crisis, local advice given would be endless, but it to help. As managers of commercial
disruptive environments, which seem to in our lives? property management. accommodation is facing revenue losses can include: not to overprice or under- estate, we bring experience, technology
be growingly recurrent in our lives. We face this reality every day: the According to several studies about superior to 75% in the second trimester price; what to offer for free, and what and know-how of managing complex
The reality of the ‘handyman’ who can driver of the subway we catch to work, real estate in Portugal, the construction of 2020. This confirms the difference to charge extra; when and how to charge businesses, so imagine what we can do to
do everything is perceived differently the accountant who takes care of the of residential buildings for lease promises between apparent profitability and effec- the monthly fee; how to act in a crisis; help owners with their houses. 쐽
www.essential-business.pt 16 www.essential-business.pt 17
Essential Events
Rock in Rio
the music festival
that unites different
generations and
prominent brands
Rock in Rio Lisboa is one of the largest live outdoor
events in Portugal with a truly international reach,
one which gives its stars a chance to shine and sponsors
unrivalled exposure. Although it has now been cancelled
this year, President Roberta Medina explains the
importance of the event for big brands
TExT CHRIS GRAEME
R ock in Rio is today probably one of
the world's most famous rock-pop
festivals. When the average person thinks
Gallagher, Duran Duran, A-HA and Ivete
Sangalo (Brazil), David Carreira and
Xutos & Pontapés (Portugal). However, it
of music festivals, only four instantly was not to be.
spring to mind. One, Woodstock, hap- “The decision was taken to sadly can-
pened in the late 1960s; two others - cel the 9th edition in June this year and
Coachella Valley in the US and Glaston- carry it over to next year,” admits Roberta
bury in the UK - are also household Medina adding “the event as we know
names. Then, there is Rock in Rio, which and love it only makes sense with thou-
because of its international reach, is bigger sands of people of all ages coming to-
than any other in the western hemisphere. gether to enjoy the music, the excitement
This feat is mainly because of the and the atmosphere that only a live event
festival’s recurring nature. The music like Rock in Rio can provide.”
festival may have originated in Rio de Although Brazilian entrepreneur and
Janeiro, Brazil, but later branched into advertiser Roberto Medina was responsi-
other cities such as Lisbon, Madrid and ble for the inception and organisation of
Las Vegas. the festival, as well as moving the 2004
Eight editions of the festival have edition to Lisbon, while controversially
been held in Rio de Janeiro (1985, 1991, keeping the brand ‘Rock in Rio,’ today his
2001, 2011, 2013, 2015, 2017 and daughter Roberta Medina has taken on
2019), eight in Lisbon (2004, 2006, the mantle of organising the festival,
2008, 2010, 2012, 2014, 2016 and which in 2011 returned to its original lo-
2018), three in Madrid (2008, 2010 and cation in Rio de Janeiro, where the story
2012) and one in Las Vegas, in 2015. all began back in 1985.
Despite COVID-19, the organisers Rock in Rio drew in 1.5 million peo-
had been planning for this year’s event, ple at its first event, with 700,000 attend-
from 19-27 June, to go ahead. It had an ing the second and fourth editions, about
impressive lineup including world-class 1.2 million attending the third festival,
acts Foo Fighters, Back Eyed Peas, Liam and about 350,000 people attending each
www.essential-business.pt 19Essential Events Essential Events
BRAND COMMUNICATION A MONEY-SPINNER FOR
The Rock in Rio organisers work a THE HOST CITY
year in advance to communicate and Roberta Medina admits that from an
market their events. organisational point of view, Lisbon tends
“We understood that a big brand will to work better than Rio, although the last
not invest US$20 million in one edition edition in Brazil generated an impressive
to reach their market audience for 10 US$180 million (1bn reais).
days," Medina points out. When Rock in Rio arrives in a coun-
“We realised that we would have to try, the first step is to get the city hall on
turn Rock in Rio into a communication board and the support of all the public
campaign for the brands where they entities for the 10-day private event,
could talk about Rock in Rio while com- which has a huge economic impact on
municating their brands, in the same way the city involved.
that brands need to communicate at And while the event is private and
Christmas or Easter." involves no public funds, that coopera-
So, the organisers came up with a tion with the municipal authorities in
one-year communication plan, generat- terms of licensing a venue, the police
ing news and being a communication and emergency services and traffic con-
platform where the brand sponsors could trol, is vital.
advertise their brands. “We cannot move 100,000 people to
In Brazil, the event attracts over 80 a venue and stop the normal flow of the
brands to the venue while in Portugal city and become a problem,” she stresses,
there are around 40 brands involved. emphasising that everything has to work “ROCK IN RIO DOESN’T
“In our communications campaigns, like clockwork. This means a high level CHOOSE THE SPONSORS,
we focused on giving voice to our of pre-planning and organisation.
brands," she explains. "That is the only “At every edition, the organisation
RATHER IT GOES TO THE
way, in the countries in which we ope- works with around 50 public service MARKET AND THE
rate, that we can invest much more than entities to guarantee that everything SPONSORS CHOOSE
at a traditional festival because we works perfectly when the event is taking THE EVENT.
constructed the festival with the brands." place,” says Roberta Medina.
of the first three Lisbon festivals. And it rock or alternative music. Instead, this kind of lineup we provide, as the best
has grown ever since, Roberta Medina event is global and has an audience that sound quality, world-class infrastructures
told members of the Harvard Club of ranges from 15-50. in terms of dressing rooms, restrooms,
Portugal and Essential Business partner “With Rock in Rio you’ll find MBB, lounges, restaurants, food service (with-
American Club of Lisbon, in February. Samba, Pop, Rock and Roll and Heavy out the long queues), not to mention a
Metal because we understood that we high investment in scenography, which
A FAMILY AFFAIR wanted to reach a large number of peo- all translates into conjuring a different
It started in Brazil in 1985, but the ple,” says the entrepreneur, whose mater- world,” says Roberta Medina.
birth of the concept was beset with nal ancestors hailed from Porto. “You don’t see another festival where
teething problems due to disagreements “The main motivation initially was to you can see families going to experience
with the Rio de Janeiro City Council, promote Rio de Janeiro abroad and give it together with a mainstream lineup that
which dismantled the City of Rock over a voice to a whole generation that was reaches so many people,” she adds.
public control concerns. looking for freedom after the military And this family and friendly atmos-
This led to the second edition being regime. The idea was that it is possible to phere foster a generally peaceful festival.
held in Rio de Janeiro’s Maracanã join different people from different back- In Brazil’s rock city, which has seven
Stadium in 1991, which went against the grounds, social and political classes, days of events, attracting 100,000 peo-
event’s philosophy of not just being about races and genders in peace and harmony, ple, and running from 2pm to 4am,
concerts, but a complete family expe- and music was the instrument to bring it works almost perfectly. There are
rience in which people spend time people together,” she explains. no fights.
together and have fun. “When thinking about Rock in Rio, “If it is possible to bring people from
Roberta Medina says that Rock in Rio we don’t just think about putting on great different backgrounds and beliefs
is different from traditional rock festivals, concerts, but about providing a special together, in harmony in Rio, then it is
which lack infrastructure, are mainly for moment for a big audience of all age possible anywhere. It’s not for music, it’s
young people aged 18-30 and focus on groups. That has as much to do with the with music,” Medina stresses.
www.essential-business.pt 20 www.essential-business.pt 21Essential Events Essential Events
days in Lisbon, but 5.8 million viewers in vehicle to bring five sub-brands together
Portugal followed the event live on TV, for the first time to launch the Millen- “YOU DON’T SEE ANOTHER
radio and social media. That explains why nium brand. The event was a big success FESTIVAL WHERE YOU CAN
the organisers see every relevant commu- for the bank proving that Rock in Rio is SEE FAMILIES GOING TO
nication channel as a partner together an effective platform for brands to reach
with the brands which invest in those their consumers. EXPERIENCE IT TOGETHER
media channels. WITH A MAINSTREAM
“We identify the media platforms and HEALTH AND PLANNING LINEUP THAT REACHES
look at the kind of audience they have One of the Rock in Rio (Lisbon and SO MANY PEOPLE.”
and the people who identify with it. We Madrid) team members who has had the
study the platform’s reach and see if it longest association with the festival is
will fit with our audiences,” says Medina. Ricardo Mexia, who has been advising
Medina stresses that Rock-in-Rio the organisers on public health issues
doesn’t choose the sponsors, but it goes since 2006.
to the market and the sponsors choose Mexia, who is a doctor specialising in
the event. “Usually they choose us be- public health at the Department of Epi-
cause they see that the Rock in Rio brand demiology at the prestigious Ricardo
has the same, or similar values and qua- Jorge Institute says that they try to ensure
lities to their brands, which can reinforce that if there are any health requirements
their brand products.” they “provide it for the organisation, both
And the sponsors are impressive in terms of the audience and the acts.”
household names in Portugal and some “I also work in other mass gatherings.
big international brands such as oil and Rock in Rio is easily the most well-orga-
gas company Galp, beer brand Super nised event of its kind, and it’s been chal-
Bock, 7 Up, and Vodafone, not to men- lenging to do things differently in other
tion the institutional support of the cities that host the festival like Madrid,
Lisbon City Council. Las Vegas and Rio where requirements “Crowds are not predictable, we have
“The brands want to be close to and regulations may differ,” he says, to know how to deal with many different
young people. They want to show them adding that trying to make everything go situations and be creative, so if some-
that they are innovative and creative. So as planned is an interesting and challeng- thing happens that is different to what
we had brands that decided to be with ing task. we had imagined, we are ready to act,”
Rock in Rio because they wanted to Roberta Medina stresses that from an she says.
position themselves at the same level as organisational point of view, the slogan is “We can’t do dress rehearsals with
the big brands,” continues Medina. ‘Plan, Plan and Plan’ and that means crowds. We have to be ready and pre-
Millennium bcp was the main spon- having Plan A, Plan B and other backup pared when the doors open to meet any
sor for five editions of the festival in plans to suit almost all eventualities if eventuality," concludes Roberta Medina,
Portugal. The bank used the festival as a anything else fails. the Vice President of Rock in Rio. 쐽
In Portugal, while exact numbers are people to come to a country. In Rio, 60% turns, while Rock in Rio invests €38
difficult to ascertain, each edition brings of those who buy tickets for Rock in Rio million in media to advertise the event
in around €70 million. come from other Brazilian federal states. over the year.
“Lisbon doesn’t have to invest any “In Lisbon, we have around 20,000 “Of course, we sell tickets, but we are
money, we make it happen," she points people that come from abroad to the serving as a platform for our sponsors to
out. "There’s no public funding involved. festival, while 15% come from Porto and communicate. Everything we say, the
In addition to the visibility the city gets, the North, which has a financial impact images we use, all of this communication
we also bring in thousands of music on hotels, restaurants and public trans- has an impact on the final result of the
tourists." port,” she says. event," Medina explains.
For example, in Brazil, every edition She also highlights that TV is still a
employs 20-25,000 people, while Portu- MEDIA PARTNERS very important platform. In Portugal, the
gal employs around 8,000-10,000 people Media Partners are vital for both the broadcasting rights to transmit the event
who are working directly or indirectly on success of the event and the brands in live are awarded to the youth-orientated
the event before, during and immediately order to reach a wide audience. entertainment channel SIC Radical.
afterwards. At the last event in Brazil in 2019, the In fact, on those days the festival ran,
Roberta Medina says the event has a return from the media coverage and SIC Radical netted the highest audience
huge impact in terms of tourism and the involvement in the festival was around figures in Portugal.
local economy. Entertainment and cul- 2.2bn reais. In Portugal there is around At the last edition in 2019, the festi-
ture, she stresses, are things that move €40 million in spontaneous media re- val attracted 280,000 people over four
www.essential-business.pt 22 www.essential-business.pt 23Portuguese real estate funds I n 2019 Lisbon was considered the best
city in Europe in which to invest in
real estate. Last year it dropped down to
Iberian economy are not so favourable,
particularly because Lisbon and indeed
Portugal, like the other two cities in
ments in cities all over Europe, including
Lisbon and Porto.
"Completing a transaction logistically
10th place and this year is at 15th, accor- Spain, are so dependant on tourism is often a challenge, especially for inter-
A safe haven in volatile times ding to a ranking compiled by PwC and
the Urban Land Institute.
This year Berlin, London and Paris are
flavours of the year for real estate invest-
which was hit hard by the Covid-19 crisis.
“In our experience, every real estate
investment has dropped in every market
in Europe over the last months and for
national investors, Teams can’t get on
flights and see assets in person, when the
process of notarisation or arranging finan-
cing becomes more challenging."
ment market players, such as funds and obvious Covid-19 reasons," says Kirk Lindstrom says that Round Hill Capi-
Real estate funds have always been seen as a safe haven in volatile times of crisis, especially developers. Lisbon was not the only city Lindstrom, Chief Investment Officer at tal benefits from having local teams in
when interest rates are at record lows. Although Lisbon has fallen from the top position of to fall out of favour. The outlook for Round Hill Capital, a vertically inte- Portugal to continue its activities and
‘Best City in Europe in which to Invest’ in 1919, to 15th Position this year, international southern European cities is down overall, grated real estate investment, develop- doesn’t face the same headwinds that
with Madrid and Barcelona falling to 8th ment and asset management firm which others do, but doesn’t see the Iberian
investors are still in the game for the long haul and 13th place respectively, because focuses on the real estate student accom- market as different from the wider mar-
TExT CHRIS GRAEME the prospects for a rapid recovery for the modation and multi-family housing seg- ket in Europe.
www.essential-business.pt 24 www.essential-business.pt 25Essential Funds Essential Funds
prime crisis which started in the United
States in 2007 forced a reset on the eco- “WE ARE MAINTAINING OUR ACTIVITIES IN THE
nomy, levelling down local economies. PORTUGUESE AND SPANISH MARKETS WHICH WE
Miranda Domingos believes that the FIND QUITE ATTRACTIVE AND WE DON’T SEE A CHANGE
recovery from this new starting point
enhanced creativity. New policies and
IN RISK STATUS REGARDING OUR ASSET CLASSES.”
programs were put in place, promoting KIRK LINDSTROM, CHIEF INVESTMENT OFFICER
business development, driving exports AT ROUND HILL CAPITAL.
and fuelling the tourism sector.
“Portugal was able to attract foreign
investment, and as tourism flourished
Lisbon became the “new-kid-on-block” funds are collective investment institu- This fall was mostly down to the winding
followed by Porto in Europe," Miranda tions whose sole objective is to invest i- up of four funds that year. Nevertheless,
Domingos said. nvestor capital and work from the the amount of property under manage-
"The seed sprouted, and between principle of spreading risk. ment increased by 1.5% in this category
2017 to 2019 everyone was reaping the and represents over half of the total
dividends from Portugal’s tourism boom, FUNDS IN 2020 national real estate investment fund as-
the rise in technology startups spurred by According to Portuguese online fund sets under management.
Web Summit which moved from Dublin analysts Funds People, Portugal's real By the end of last year, Interfundos,
to Lisbon in 2016 and from overseas estate investment funds market grew in Square Asset Management, and Caixa
relocators and property investors taking 2020 in terms of the value of the assets Gestão de Ativos held the largest share of
advantage of the Non-Habitual Residents under management, with a growth of real estate funds in the Portuguese mar-
tax regime and Portugal’s successful 2.2% since the start of that year. ket — 12.6%, 11.4% and 9.2% respec-
Authorisation for Residency through That meant that the value of real tively, with European Union countries billion, while FUNGEPIs fell 1.1% to
Investment program (ARI), commonly estate investment funds under manage- continuing to represent virtually all of the €417 million. Again, Interfundos (12.2%),
called the Golden Visa." ment by entities that are members of the investment made in real estate assets. Square AM (11.2%) and Caixa Gestão de
The real estate asset advisor says that Portuguese Association of Investment In the last quarter of 2020, Portugal’s Ativos (9%) led the market share.
Portugal also benefits from some intrinsic Funds, Pension Funds and Asset Mana- securities market regulator CMVM re-
“OVERALL, WE EXPECT THAT INVESTORS WILL REMAIN factors that influenced the way that Por- gement (APFIPP) totalled €9.236 billion ported that several special real estate INVESTORS MORE CAUTIONS
tugal’s real estate sector performed so by the end of June. investment companies were set up - Imo- Miranda Domingos, Senior Partner of
FAIRLY CONFIDENT IN THE MARKET, AS IT HAS PROVEN ITS well: the country’s mild, sunny climate, That growth in the market was mainly fuste and JNV Real Estate managed by BlackOAK Real Estate Advisors says
RESILIENCE, AND WILL CONTINUE TO OFFER INTERESTING its excellent private and public health down to “progression at a real estate Atlantic, and the real estate investment “fireside chats” with different investors
INVESTMENT OPPORTUNITIES AT AN ACCEPTABLE LEVEL services and welfare system, an available patrimony level” whereas the number of fund FSG Saúde, managed by Fideli- have indicated that despite a more cau-
OF RISK.” CARLOS MIRANDA DOMINGOS, BLACKOAK. pool of skilled young professionals who investment vehicles declined from 185 dade. Also in the same quarter, the real tious approach, there is a will to continue
speak English and other foreign langua- by the end of 2019 to 178 by June 2020. estate investment fund Imóveis Brisa previous investment plans in Portugal,
ges, a relatively low cost of living com- managed by Profile was liquidated. although investors are more risk-sensitive
pared to many other EU neighbours, and and more conservative on the timeline
a relatively low crime rate. FUNDS IN 2021 for returns.
In Portugal, its focus has been on stu- status regarding our asset classes. Round “This attractive environment drove According to statistics compiled by He explains that one of the characte-
dent accommodation and urban requali- Hill is a market leader in the European the economy forward and increased the Portugal’s securities market regulator ristics of real estate is its “inelasticity
fication. In Lisbon it has developed, in student housing and alternative accom- demand for office spaces, shops, hotels, CMVM, the value of real estate invest- towards market volatility”, meaning that
partnership with TPG Real Estate Part- modation segments, and our specific restaurants and cafés and residential de-
ners, the €150 million mixed student
ment funds (FII) and special real estate professional investors normally have a
investments have been aimed at situa- velopment to cater for overseas business investment funds (FEII), and real estate long-term investment focus, driven
residences and private apartments pro- tions where there is an imbalance bet- and professional relocators, second home property under management funds by strong real estate market fundamen-
ject with commercial units attached ween supply and demand and which buyers and investors in Airbnb apart- (FUNGEPI) stood at €10.7 billion by tals: location, supply and demand and
'Lumino Campo Pequeno' in the smart certainly holds true in Lisbon, Porto in ments, all of which attracted investment the end of January, down €66.4 million management.
upper middle-class Campo Pequeno dis- our areas of interest." which went into rehabilitating and refur- (0.6%) on December. “We believe that despite a higher risk
trict of the city. He adds: "We believe that invest- bishing properties rehabilitation of the The amount for January invested in related to economic uncertainty, core
Lindstrom stresses that while logis- ments in these markets will continue in city centre areas of Lisbon and Porto," he real estate investment funds fell 0.7% properties will continue to attract long
tics is another important investment sec- 2021, 2022 and beyond and are commit- pointed out. to €7.9 billion. FEIIs fell 0.2% to €2.4 term investors," he said. "We also expect
tor for Round Hill, it has not yet invested. ted to looking for investment opportuni- A real estate investment fund attracts
That is not down to any lack of attractive- ties in the Iberian market in general and capital from various, often international
ness in the local market, but to Portugal Portugal, specifically." investors, and is placed in portfolios and
being "so much smaller" than many other applied in property and managed by spe-
markets. NEW KID-ON-THE-BLOCK cialists known as fund managers.
"PORTUGAL CONTINUES TO BE ONE OF THE TOP DESTINA-
“We are maintaining our activities in Looking back over the past 10 to 12 In Portugal, the regulatory and super- TIONS FOR TRAVELLING AND TOURISM AND THEREFORE
the Portuguese and Spanish markets years, Carlos Miranda Domingos of visory entity which supervises funds is the EXPECTATIONS OF A SMOOTH BUT SOLID RECOVERY ARE
which we find quite attractive," says BlackOAK, a Lisbon-based real estate Portuguese Securities and Market Com- STRONG”. PAULO DUARTE SARDINHEIRO, BLACKOAK.
Lindstrom. "I don’t see a change in risk asset advisory firm, explains that the sub- mission (CMVM). Real estate investment
www.essential-business.pt 26 www.essential-business.pt 27You can also read
