23 Jan 2023
M7 Real Estate announces the sale of Forte 9 in Carnaxide to a Portuguese developer
M7 Real Estate, the pan-European investor and asset manager specialising in multi-tenanted properties, announces the sale the Forte 9 office building, formerly known as Cervejaria Lusitânia facilities, on Avenida do Forte in Carnaxide to Lusoproa, a Portuguese real estate developer.
The transaction was facilitated by CBRE, who was mandated by the seller to manage and complete the sales process.
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.”
Miguel Batista from Lusoproa, commented: “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, commented: “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.”
With the licensing approved, the Forte the Forte building will provide about 3,500 sq m of office space across three floors, together with 116 car spaces over four basement floors. It benefits from a strong location in the Western Corridor, in the middle of Avenida do Forte in Carnaxide, with retail and other amenities in the surrounding location which will be an essential factor in attracting a future tenant”