Special focus: Real Estate 2017 Special focus Real Estate 2017 | Page 4

Special focus: Real Estate
growth cycle, and the European
Central Bank will foreseeably
abandon its monetary stimulus
policy – this should lead to an
upward curve in interest rates over
the long term, which in turn should
gradually slow down rising prices.”
Shortage of high-yield products
At present, there is shortage of
high-yield products in the real
estate market. “Not everybody can
buy the products they would like
to target – there is a shortage in this
respect,” Varela says. Meanwhile,
Alcocer argues that investors need
to “re-focus strategies and adapt
to the market”. He adds: “There is
a shortage of high-yield products
and it´s not easy to achieve the
returns that we´ve seen in the past.”
Alcocer says one of the ways in
which investors are adapting to the
changing market circumstances is
by developing properties instead of
buying already-built offices or retail
premises. “In order to generate
profits, investors need to develop,”
he explains. “Buying an asset in
a desirable location is no longer
enough,” he says.
In addition to this, clients looking
50 • IBERIAN LAWYER • September / October 2017
to refurbish old buildings that
to tie-up deals are facing increasing
previously had limited potential
competition – from Spanish and
international investors
– according to Garaulet.
Gone are the days of
Real estate deals are
purchasing real estate
increasingly
complex
assets and waiting
and fast-moving.
for prices to increase;
meanwhile, the added
Joaquín Garaulet
pressure of growing
Cuatrecasas
competition means
that transactions are
becoming more and
more sophisticated,
and are also taking
for renovation due to being subject
place more quickly, says Garaulet.
to strict lease rules. These efforts
He adds: “Real estate deals are
have paid off and the Portuguese
increasingly complex, fast-moving
real estate market is booming,
and require a multidisciplinary
according to some observers.
team which is able to close them
“We went through a very harsh
successfully.”
phase of no investment in real
estate until 2014, but this is now
Portugal: ‘Trendy destination’
over,” PLMJ partner Tiago Castro
In recent years, the Portuguese
says. “Large investors are now
government has taken a number
coming to Portugal, and there is
of measures to boost the country’s
pressure on the market – prices are
economy and attract foreign
increasing and many investors are
investment. These include the
looking for opportunities. It’s like
Golden Visa scheme and the
night and day when comparing
non-habitual residence (NHR)
then and now.” Recent Portuguese
tax regime, as well as regulatory
real estate deals have included
changes that have made it easier
Aberdeen Asset Management’s sale
and leaseback of a €34.7 million
portfolio of properties that are
being operated by Sonae under
triple net lease agreements (RRP
Advogados advised Aberdeen
Asset Management, while
Sonae was advised by MLGTS.
Meanwhile, PBBR recently advised
the French group Keys Asset
Management on the acquisition
of Lisbon’s LX Factory, a former
industrial site in Lisbon that was
redeveloped and is now home to
fashion, publicity, communication,
fine arts, architecture and music-
related businesses.
As well as incentives such as
the Golden Visa and the NHR
regime, the type of real estate
assets available in Portugal are
also proving attractive to foreign
investors: “We have a good ratio of
quality versus price; the Portuguese
real estate market didn’t have a
bubble, so foreign investors look at
“
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