The joint venture between the funds Tikehau and Albatross is about to complete the acquisition of Project ZIP, agreeing to pay 320 million euros to take the portfolio comprising 4,400 houses owned by several Portuguese banks.
Funds Tikehau and Albatross left behind Cerberus, which was also part of the short list of candidates invited to present binding offers for the purchase of this portfolio, placed on sale in July. The two funds selected will now start the last negotiation stage for the conclusion of the operation, which should take place by the end of March.
According to sources close to the deal consulted by Eco, «the two funds offered a super-competitive bid. It is a great sign for the Portuguese market and for other potential sellers».
This Consortium should acquire Project Zip for an amount between 300 and 320 million euro, less than the 360 million euro the project was estimated at.
It should be recalled that this project includes 4.435 housing units, most of them already with tenants, located mainly in the urban centres of Porto, Lisbon and Setubal. The buildings are part of several real estate investment funds for housing rental (FIIAH) managed by Norfin and owned by several banks, amongst which Novo Banco, CGD, Montepio, Millennium bcp and Santander Totta.
90% of these buildings are rented. Projetec Zip currently generates 14.6 million euro in annual revenues, which could increase to 25.8 million euro, according to the same source.
Original Story: Iberian Property |Ana Tavares
Photo: Photo by Svilen Milev, in FreeImages.com
Edition & Translation: Prime Yield