Patrizia has bought a hotel development in Portugal on behalf of a German pension fund.

The €40bn real estate manager said it has acquired the Tagus Square hotel development in Lisbon from a private individual for an undisclosed sum.

The asset will be transformed into a 4-5 star 6,200sqm hotel with over 100 rooms.

Patrizia said the latest transaction increases its managed assets in the Iberian Peninsula to close to €1bn.

Augusto Zunzunegui, transactions director Patrizia Iberia, said: “This acquisition of one of the few landmark Lisbon hotel developments on behalf of our client demonstrates our ability to secure high-quality assets in a very competitive market place and is underpinned by our local market expertise.

“The purchase presents a compelling opportunity to add value through a number of asset management initiatives.”