Principal Global Investors, through its real estate investment team, Principal Real Estate, has acquired a mixed-use office and retail building in Lisbon, Portugal.
The asset was acquired for the Principal European office fund from Patrizia's TransEuropean VI fund for €45.25 mln.
Located in Lisbon’s important riverside area, Dom Luis I has a total lettable area of 10,300 m2, comprising 8,100 m2 of office space over seven floors and 2,200 m2 of retail and leisure space on the ground floor. The building, which was refurbished in 2017, is currently fully let to five tenants, including Farfetch, Sitel, and Fitness Hut.
Sebastian Lietsch, head of fund management, Germany, for Principal Real Estate, commented: 'The Dom Luis building is a good fit for our office fund strategy. As our second asset in Portugal, it provides further balance to the geographic distribution of assets across Europe.
'Furthermore, the characteristics of the property and its location are in line with our Digital strategy to invest in markets that demonstrate growth, whether this is due to positive demographics, innovation within industries, or exposure to globalisation and trade.'
Irina Va, senior transaction and asset manager for Principal Real Estate, added: 'Traditionally a tourist and residential area, Lisbon’s riverside is an up-and-coming commercial zone that has become popular with domestic and international office occupiers looking for modern space.
'The building’s proximity to one of Lisbon’s prime residential areas is also an attractive characteristic, given the new hybrid working approach many businesses are adopting as a result of the pandemic.'
RPE acted on behalf of Principal and Cushman & Wakefield representing the vendor, Patrizia.
