M7 Real Estate has sold the Forte 9 office building, formerly known as Cervejaria Lusitânia facilities, on Avenida do Forte in Carnaxide, Lisbon, to Lusoproa, a Portuguese real estate developer.
The transaction was mediated by CBRE, who was mandated by the seller to manage and complete the sales process.
With the licensing approved, the Forte building will be fully destined for services, totaling about 3.500 sqm of GCA spread over 3 floors, which add up to 116 parking spaces distributed over 4 floors in basement.
It benefits from a privileged location in the Western Corridor, in the middle of Avenida do Forte in Carnaxide, with a high offer of retail and services in the surroundings, being an essential factor for the installation of a future tenant.
Leonardo Peres, Managing Director of M7 Real Estate Portugal, commented, “Despite current headwinds, we saw an opportunity to crystalise value for our investors leveraging the continued resilience of the Portguese investment market as well as the strong underlying fundamentals in the Carnaxide area. The sale of this asset to Lusoproa is in line with our business plan and follows the completion of our asset management strategy. This saw us expand the lettable space and secure a license to renovate the building. Portugal remains a key market for M7 and we have ambitions to continue deploying capital on behalf of our clients, if the right opportunities arise.”
According to Miguel Batista from Lusoproa, “It is a very well-located asset, with characteristics that allow the development of a very interesting project, which will undergo the total conversion of the existing into a building totally adapted to the current needs and requirements of the market. It is an important investment for Lusoproa, as so far our investment strategy has gone mostly through the development of residential assets.”
On the buyer’s side, this is the first acquisition of an asset destined to offices, having so far guided its portfolio by assets intended for housing, having high track record as residential developer.
José Hermozilha, Head of Investment Properties at CBRE, stresses that “it is an iconic building in the Carnaxide area, with great visibility from Avenida do Forte, and with strong potential for repositioning by the new owner. Due to its characteristics and flexibility, we strongly believe in the success of an alternative use project.”