AFIAA, the Swiss foundation for international real estate investments, has acquired the 242 Avenida da Liberdade building in Lisbon, Portugal.
AFIAA has paid an undisclosed amount to buy the office and commercial building from Real Added Value PN – Fundo de Investimento Imobiliário Fechado, a real estate fund managed by Lace Investment Partners.
The twelve-storey 242 Avenida da Liberdade building was built in 1969 and was comprehensively modernised in 2018/2019.
AFIAA saif around 98% of the total space is currently let to insurer Generali Seguros Portugal.
The acquisition represents AFIAA’s second investment in the Portuguese capital.
Sebastian Feix, the head of transactions at AFIAA, said: “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.”
To read the latest edition of the latest IPE Real Assets magazine click here.
