Portuguese real estate company Sonae Sierra has agreed to sell a 74% stake in an office tower project in Lisbon to French insurance company and asset manager AXA.

Centro Colombo

Centro Colombo

The future nine-storey North Tower at Lisbon's Centro Colombo complex will boast 35,000 m2 of office space and is expected to be completed by the end of 2025.

The total investment for the project is estimated at €118 mln, and Sonae Sierra will retain a minority ownership stake.

Fernando Guedes de Oliveira, CEO of Sonae Sierra, said the deal would be completed in May, adding that the building will have the ‘most area per floor in Lisbon’, making it suitable for large tenants.

Centro Colombo, built in 1997, has gradually expanded its office space with the addition of the East tower in 2009 and the West tower in 2011.

In 2015, Sonae announced its intention to build two more towers, totalling 48,000 m2. However, the plans were ultimately revised after coordination with the Lisbon municipality. The current project reflects this revision, resulting in a single nine-story tower.

This deal highlights Sonae Sierra's broader diversification efforts. The company manages 20 investment vehicles and recently partnered with PGIM to create a new hospitality-focused venture. They have also made their first acquisition in Porto and are exploring additional investment opportunities.

Real estate development is another key growth area for Sonae Sierra, with a current portfolio of eight projects valued at €700 mln. They aim to expand this portfolio to €1 bn within the next two years.