Portuguese REIMs remain robust despite market dip

Last month, the amount under management of Real Estate Investment Funds (FII), Special Real Estate Investment Funds (FEII)  and Real Estate Asset Management Funds (FUNGEPI) amounted to 11,048.4 million euros. This is a drop of 25.7 million (0.2%) from the following month.

The slight drop in Portuguese funds, which is entirely invested into EU countries and primarily focuses on services and commerce, is not indicative of the PT real estate market which has been growing quite rapidly for the last few years. Reasons for this may include Europe-wide economic uncertainty surrounding Brexit and the liquidation of GNB’s large FII the month before. 

Recent positives that can be taken in the Portuguese market include the implementation of SIGI’s, which hasn’t yet been utilised but will be instrumental to the future market, as well as the growth of secondary cities and local partnerships providing entry strategies for global investors. 

Below are the top real estate investment companies in Portugal (cmvm.pt, July ‘19), which make up around half of the total market in the country.

 

Top 5 real estate investment managers in Portugal:

1. Interfundos - 13.1% market share

Managed by Millenium BCP, this fund manages over 1.5 billion euros in real estate investment and and controls almost a sixth of Portugal’s real estate investment.  

 

2. Norfin - 10.4% market share

Founded 20 years ago, Norfin has become one of the largest players in the real estate investment space. Currently managing ~1.5 billion euros of assets, it has developed one of the largest REO management platforms in Europe. 

 

3. Square Asset Management - 10.3% market share

Square AM was established in 2002 from the purchase of Fundo Primeiro Imobiliário S.A. Management Company. It’s 702 million euros invested into risk/return management of core assets (mainly in office and retail) has achieved a 5.2% yield in the last 12 months. 

 

4. GNB - 9.0% market share

GNB presents one of the most diversified selections of Investment funds, covering all asset classes and catering to many different risk profiles.

 

5. Fundger - 7.6% market share

Fundger was established on January 8th, 1987, making it the longest running investment fund in the top five. It is 100% owned by Caixa, and is responsible for all operations necessary for the sound administration of funds. 
 

The CEO’s and Managing Partners of some of these featured funds will be present at Portugal GRI 2020 & Europe GRI 2019, where the senior level players operating in the region gather for candid discussion and unique market insights. Portugal GRI place on 27-28 May in Lisbon and Europe GRI on 11-12 September in Paris. 

 

Article by Matt Harris