London-based private equity real estate manager Tristan Capital Partners has carried out its first deal in Lisbon, Portugal, by acquiring a portfolio of seven office buildings in the city’s central business district (CBD) for a total of €100 mln.
The transaction was made by Curzon Capital Partners 5 LL, a core-plus fund advised by Tristan Capital Partners.
The portfolio was purchased from Vision Escritórios, a closed-end fund managed by Norfin, who will be retained as asset manager for the properties. Founded in 1999, Norfin currently manages around €1.5 bn of real estate assets on behalf of institutional investors and private individuals.
The assets, comprising a total of 38,421 m2, include a landmark office building at Rua Castilho, five office buildings in Zone 2 in Lisbon’s CBD and a mixed-use building in the nearby suburb of Carnaxide. The portfolio is 95% let and has a diverse tenant mix.
Nikolay Velev, executive director at Tristan Capital Partners, said: ‘This portfolio acquisition represents our first deal in Portugal and offers our investors immediate exposure to Lisbon’s CBD, which we believe will continue to perform well on the back of a strong supply-demand imbalance.
‘The portfolio locations are very attractive and once our plan to improve the assets has been implemented, they will be well positioned to capture the growing demand of local and international occupiers seeking inner-city, modern accommodation.’
Paulo Barradas, managing director at Norfin, said prime office rents in Lisbon have experienced strong upward pressure in recent years on the back of a rebounding Portuguese economy. ‘In 2018, the fastest rental growth was reported in Zone 2 of the CBD where prime rents increased by 16%. Five of the assets in the portfolio are located in this area,’ he said.
CCP 5 LL was advised by JLL, Uria Menendez and CVO Group. Financing was provided by ING Bank NV Sucursal em Portugal, as agent and original lender.
