The international real estate investment manager Savills Investment Management (Savills IM) is taking over the asset management of two interconnected historic palaces in the centre of Lisbon. The property is owned by Arab Bank (Switzerland) Ltd., which recently acquired the ensemble. The property covers a total of more than 24,000 square metres. Quest Capital Partners will accompany the project as Development Manager. Savills IM manages real estate assets of around 1.5 billion euros in the Iberian Peninsula.
The property is located at Largo do Calhariz 30 in Lisbon’s downtown Chiado district. It consists of the two connected buildings, Palmela Palace and Sobral Palace. As part of a change of use, it is to be repositioned into a five-star hotel with hotel rooms and so-called branded residences. The historic facades were already renovated in 1997 in accordance with the requirements of the listed building and form a solid basis for the planned further development.
The project aims to achieve the highest LEED certifications, underlining its clear focus on sustainability and long-term environmental performance. The construction and development phase is expected to take around three years.
Fernando Ramírez de Haro, Managing Director at Savills Investment Management for Spain and Portugal at Savills IM, says: “We are very pleased to add this iconic building to our portfolio. The transaction demonstrates the strategic importance of Portugal – a market with great potential that attracts visitors from all over the world thanks to its high quality of life, pleasant climate and popular gastronomy. This stable and sustainable demand opens up attractive opportunities for the repositioning of real estate. The professional management of such a landmark building in line with the changing demands of guests, investors and regulation allows us to create long-term value for all stakeholders – including the people of Lisbon.”
Berkan Gülen, Head of Asset Management Germany at Savills IM, adds: “This mandate underlines our proven expertise in active asset management as well as in the repositioning and conversion of complex existing properties. Asset management in particular requires creativity, entrepreneurial thinking and a clear view beyond classic usage concepts – always combined with the implementation of sensible ESG measures. Projects like this show that the conversion of areas in prime locations is not only economically sensible, but also contemporary and sustainable. Within the framework of our funds and mandates, we regularly review suitable measures and implement them consistently. Examples in Germany include the comprehensive modernization and sustainable refurbishment of an office property in Stuttgart’s Friedrichs-Carré and the Munich atrium, where we transformed office space for the city’s vocational school for media professions into modern teaching and administrative spaces.”
