Swiss Investment Foundation AFIAA has acquired the 242 Avenida da Liberdade office and commercial building in Lisbon by way of an asset deal.
The seller was Real Added Value PN – Fundo de Investimento Imobiliário Fechado, a real estate fund managed and represented by Portuguese investment manager Lace Investment Partners. The purchase price was not disclosed.
Built in 1969, the twelve-storey property with a total rental space of approximately 9,600 m2 was comprehensively modernised in 2018/2019 and has been awarded a grade A energy performance certificate, the second-highest classification.
Sebastian Feix, 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.'
According to AFIAA, the property is situated in a prestigious location in Lisbon’s prime CBD market with excellent transport links. Some 98% of the total space is currently let to insurance company Generali Seguros Portugal. Earmarked for the AFIAA Global portfolio, the building represents AFIAA’s second investment in the Portuguese capital.
AFIAA’s consultants for the transaction were Cushman & Wakefield. On the legal side, the foundation was advised by Morais Leitão law firm, through its corporate real estate team. The lawyers involved were João Torroaes Valente and João Fitas.
