M7 Real Estate (“M7”), the pan-European investor and asset manager, announces that it has granted a new ten-year lease to its tenant in Quinta do Marchante, Lisbon, on behalf of M7 Portuguese Active Fund (“M7 PoRAF”). As a result, the rental income has increased more than 30%.
The asset, located in Quinta do Marchante, Prior Velho, is five minutes from Lisbon’s International Airport and 8 km from Lisbon City Centre. Prior Velho is a consolidated area of services related to the airport, consisting of offices and warehousing, with direct connection to the A1 (North highway) and easy access to 2ª circular (Lisbon’s City Centre).
The tenant is a specialist logistics and distribution company operating in the Iberian Region and has occupied the 8,030 sq m space (comprising a 1,430 sq m recently refurbished office and 6,600 sq m warehouse) since 2014. Nearby occupiers include BP, Hertz, Sixt, UPS and DHL.
João Salema Garção, Asset Manager at M7, commented: “We are very pleased with the progress of our asset management of this asset. Following its purchase in September 2019, we began our investment plan and in December 2019 we secured a new ten year lease with the current tenant, achieving a significant increase in the rent (which was also above market expectations).
“This letting reflects the dynamism and sturdiness of the occupational market, particularly highlighting the growing trend for last mile warehouses and the substantial increase of e-commerce in Portugal. The building is currently circa 90% occupied and full occupancy is anticipated shortly. We are delighted to be able to implement our business plan ahead of schedule thereby significantly improving the income returns for our investors.”