M7 Real Estate has sold three assets on behalf of its value-add M7 Portuguese Active Fund (M7 PORAF).

The manager said it has in three separate transactions, sold the assets in Lisbon and Évora for a total of €12.2m.

The 6,000sqm Quinta do Alcaide retail park located south of Lisbon in Evora has been acquired by Europar and the 2,800sqm gym and office asset in the Oeiras area of Lisbon has been acquired by Fundiestamo.

M7 said it also sold the 251sqm office unit in Lisbon’s Arcis building to Fundiestamo.

Leonardo Peres, managing director in Portugal at M7 Real Estate, said the investment market in Portugal continues to perform very well despite the challenging market backdrop, and these three sales generate attractive returns for investors.

“This confidence is driven by strong real estate fundamentals in the Portuguese market, which is translating into positive performance forecasts for the region and the remaining portfolio.

“It is also confirmed by the strong level of transactions anticipated to complete in the Portuguese market during the early part of 2022, with over €2bn of deals already at various stages of negotiation, which is more than the total volume of commercial real estate transacted during 2021 (€2bn).”

João Salema Garção, senior asset manager at M7 Real Estate, said: “Our local asset management expertise has been key to driving value across these assets and securing these sales on behalf of the Fund.

“Additionally, we have seen particularly strong interest in retail parks, both from occupiers and investors, due to the growth of e-commerce in Portugal and the flexibility that this type of asset class can also provide for alternative uses.”

M7 PORAF was launched in 2018. The fully deployed fund’s assets comprise a portfolio of office, logistics, light industrial and retail parks totalling 176,000sqm concentrated in Great Lisbon and Greater Porto.

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