M7 Real Estate (M7) has sold the Forte 9 office building, formerly known as Cervejaria Lusitânia facilities, on Avenida do Forte in Lisbon’s Carnaxide district to Lusoproa, a Portuguese real estate developer. Financial details were not disclosed.
With the licensing approved, the Forte building will be redeveloped and fully destined for services, providing about 3,500 m2 in total spread over 3 floors, which add up to 116 parking spaces.
‘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,’ said Leonardo Peres, managing director of M7 Real Estate Portugal.
The deal is the first office acquisition made by Lusoproa, which has so far focused on the development of residential assets. ‘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,’ said Miguel Batista from Lusoproa.
The transaction was mediated by CBRE, who was mandated by the seller to manage and complete the sales process.