The full effects of the economic crisis were felt in Portugal in 2008 and had an almost immediate impact on property investment. The misgivings of institutional investors, allied with the scarcity or virtual non-existence of funding for the property sector, had a severe effect on the market. After two years’ growth of around 30% in transactions,
2008 was down more than 60% over the preceding year,
at just over 500 million euro. Notwithstanding slight growth in 2009, the market remained depressed, with transactions of around 590 million euro.
The second half of the year did see the first signs of recovery in the European economy however, consequently giving property markets a lift in the first three months of 2010, with a level of guarded optimism in the market when occupational activity stirred slightly from its state of lethargy and a number of investors returned with the aim of studying the market and making the odd transaction. n the second quarter however, concerns over the sustainability of European sovereign debt as well as depressing news on the Portuguese national economy took its toll on the occupational market and on investment activity.
January to June 2010 witnessed 18 transactions, totalling 240 million euro, at an average lot size of 13 million euro. The Portuguese market is clearly dominated by institutional investors with international funds focusing on retail sectors and prime office space. Domestic funds are typically more interested in office and industrial assets, as well as in smaller retail property with limited management requirements. For domestic investors, diversification in terms of property assets has been, to a large extent the reason for their market entry, with highly satisfactory risk-related returns and low correlation levels with financial markets.
Retail and office space are still the sectors most in demand.
A certain level of investment in the industrial and hotel sectors has been noted since the start of this decade, as well as several one-off deals involving hotels and educational facilities. The residential sector has always been the poor cousin
in terms of investment market activity, owing to a highly unprofessional rental market and legal environment which
is not in line with institutional investors’ requirements.
Since 2008, however, several asset management companies have formed a “Property Investment Fund for Housing Rentals” and nowadays a larger share of investment has been channelled into the residential investment market.
非常に専門外のレンタル市場および法的環境のための投資の市場活動の面では機関投資家の要件に沿ってではないです。しかし、2008 年以来いくつかの資産運用会社は、「プロパティ投資ファンドの住宅レンタル」を形成しています。この頃は投資のシェア拡大住宅投資市場に送り込まれています。
The retail sector’s domination derives from the excellence of its performance since the 1990s. Today’s more mature market and the less positive effects of the crisis in the sector, may contribute towards a change in this trend. Prime products in Portugal’s retail market sector will, however, always be in the sights of major international investors, based on historical performance and resilience even in times of crisis. The evolution of market values as shown by yields (capitalisation rates of rents in perpetuity) accurately reflects the investment market’s global development. Prime yields, in the 1990s were very high on relatively low asset values in comparison to other European markets.
The domestic market’s evolution and greater professionalism, together with a consequent increase in asset values, explains the falls in yields in all sectors over subsequent years. The effects of the international crisis were first felt in Portugal in 2008 meanwhile, with the beginning of the upwards trajectory of market yields translating into considerable losses in value. Prime yields, from June 2008 to June 2010 increased 150 basis points to 7% for office space, 6.25% for retail operations and 8.25% for the industrial sector, as at the end of the first of quarter 2010.
4. Property investment funds (FIIs)
The property investment funds industry in Portugal dates back to 1987, following the implementation of Decree Law 1/87 of 03 January 1987, regulating the activity of property investment funds in Portugal. According to the latest data supplied by securities watchdog CMVM, the property investment funds industry currently has around 12.3 billion euro in assets under management. These assets are split up into more than 250 investment funds of which 94% are closed-end funds administered by 52 fund managers. Open ended funds, in spite of being fewer in number, account for 46% of the sector at around 4.86 billion euro.
ポルトガルでの不動産投資ファンド業界は１９８７年にさかのぼりる、１９８７年 １ 月 ３日の令法 １/８７の実装を次の日付には、ポルトガルのプロパティ投資ファンドの活動を規制します。有価証券のウォッチドッグCMVMによって供給最新のデータによると、不動産投資ファンド業界が現在約 １２３ 億ユーロの資産管理の下で持っています。これらの資産は、９４％は５２のファンド·マネージャーによって管理さクローズドエンド型ファンドである２５０以上の投資ファンドに分割されます。数の少ないにもかかわらず、オープン エンド資金部門で約 ４８ 億 ６０００ 万ユーロの ４６％ を占めます。
Notwithstanding the number of active funds, there is a high degree of concentration in this industry with the top three investment funds accounting for more than 20%, in value terms,of the volume of assets under management, at around 2.5 billion euro. Caixa Geral de Depósitos Group fund Fundimo manages the largest domestic property fund. The fund, also known as Fundimo, has more than 1 billion euro in assets.
5. Foreign investment in property
The property investment market in Portugal came on to the radar of foreign investors when Portugal joined the euro in 1999.
The reduction of foreign exchange risk and the positive evolution of the retail and office sectors acted as a magnet for foreign investment.
値の面では、運用資産は約 25 億ユーロ。カイシャノバ ジェラール山脈デ Depósitos グループの基金ファンヂィモ （Fundimo） 最大の国内の不動産ファンドを管理します。また、ファンヂィモ（Fundimo）として知られているファンドは、資産は10億以上のユーロを持っています。
5. 海外投資のプロパティ
ポルトガルは 1999 年にユーロに参加するとポルトガルでの不動産投資市場外国人投資家のレーダーに来ました。外国為替リスクおよび小売店やオフィス部門の正進化の減少は外国投資のための磁石を務めました。
Albeit classified as an emerging market at the time, asset value growth potential was high, associated with a track record of rent stability providing controlled risk for more conservative investors. The Portuguese market has, since then, been generating interesting levels of return, particularly in the case of core products, with a certain resilience to the crisis while, at the same time, generating better performance than in some other European countries.More than 4 billion euro has been invested by Germans, French, Dutch, American, British and others over the last 14 years and more than 50 international investors have invested directly or indirectly in Portugal since the country joined the Euro.
This figure could have been higher as the Portuguese market was, on occasions, simply not large enough to supply sufficient products in terms of number, quality and/or scale, to fully meet the demand recorded at the time. Most investment has been made in the retail sector and almost invariably in medium and large scale retail schemes, areas where there is less focus from local investors, owing to questions of scale and lack of specialisation. Foreign investors have also targeted the larger prime office assets, typically lot sizes over 20 million euro.
