A German property fund has committed to the biggest international institutional investment in Portugal since 2009, weeks after Saudi Arabia’s third richest person expressed his interest in buying a large share of the Algarve’s most prestigious resort. Together these two multi-million euro deals are a huge shot in the arm for the Portuguese property market.
Deka Immobilien from Germany is paying €43million for the Báltico building, an office block in Lisbon. High quality global journalism requires investment. According to the Financial Times, Matthias Danne, head of Deka’s real estate arm, said that the investor, which manages the largest open-ended property funds in Germany, was starting to dip a toe back into the waters of southern European property markets.
Meanwhile, Sheikh Mohamed bin Issa al Jaber from Saudi Arabia is said to be bidding for a stake in the highly desirable Val do Lobo golf and beach resort in the Algarve, a favourite with celebrities and the world’s jet set, buying through his tourist company JJW Hotels & Resorts Ltd. JJW Hotels & Resorts already owns half a dozen properties in the Algarve, including the five-start Le Meridien Penina hotel, and now is reportedly looking to take over the Portuguese state-owned bank Caixa Geral de Depositos’s 24 per cent stake in Val do Lobo.
Val do Lobo, which has two championship golf courses, sandy beaches and five-star facilities, is regarded as one of the most desirable places to own property in Portugal. It is reachable via flights to Faro, Lisbon and Seville in Spain.