Spanish REIT Merlin Properties has purchased an office asset in Lisbon for €33 mln, expanding its footprint in the Portuguese capital to over 700,000 m2 of office space.
The investment volume represents a 6.4% gross yield over €2.1 mln of gross rents.
Located in Lisbon's Expo area Parque das Nações, in Dom Joao II, the asset comprises 10,000 m2 of lettable area over 13 floors, plus five floors of parking offering 331 spaces.
The property is 100% let to international tenants including Danone, Avigilon (Motorola Solutions) and the global engineering company Subsea7.
According to Merlin, 2017 was Lisbon's most active year for offices in the last decade, with more than 165,000 m2 of take-up underpinned by positive macro data, a competitive labour market and the city's high quality of life.
Demand was particularly strong from multinational companies looking for back-office services and call centres.
Parque das Nações, where Merlin now owns three buildings totalling 27,240 m2 of GLA, is fully occupied and was the area with the highest overall rent increase in 2017.