Deka Immobilien is continuing a run of office investment acquisitions around Europe with a deal in Lisbon which sets a record yield for the city.
The German fund is buying the Fontes Pereira de Melo 41 tower in the Portuguese capital's CBD. The vendor, ECS Capital and its advisor CBRE, were looking for offers over €100 mln, equating to a yield between 3.5 and 4% for the new 22,500 m2 prime office development.
The price means Lisbon has joined the expanding 'club' of other cities in Europe where prime office yields are below 4%.
The deal is expected to close in the next couple of weeks.
FPM 41 is pre-let to KPMG and local law firm PLMJ at rents around €21/m2/month and agents say deals on other buildings are now being signed at €23/m2/month. Developers are expecting above €25/m2/month for refurbishments and developments underway.
This article first appeared in EuroProperty, the weekly publication of PropertyEU.