The insurance company is changing their real estate investment policy, by focusing on emblematic and larger buildings. The sale will reinforce Fidelidade's solvency.
Fidelidade is selling 277 of their real estate all over Portugal, 70% of which is of residential use. This Monday, the insurance company started negotiations with over one hundred Portuguese and international investors.
“The earnings we register with this operation will reinforce the solvency of the company and will also be used to invest deeper projects”, Jorge Magalhães Correia, president of Fidelidade’s executive committee, told Jornal de Negócios. Reshaping Fidelidade’s real estate profile and reinforcing its solidity are the main goals of this operation. The insurance company aims to increase their solvency level to 150% or 160% (against the current 140%), in order to increase its financial capacity.
"The earnings we register with this operation will reinforce the solvency of the company and will also be used to invest deeper projects.”
Those who are interested in purchasing the real estate have until November 17 to make a preliminary assessment and present their non-binding purchase offers. After that, Fidelidade will select a group of investors who will have access to detailed information on the portfolio and will move forward with their final offers. The insurance company hopes the process is concluded at most by the second quarter of 2018.
More than half (51%) of the assets are located in Lisbon and 12% in Oporto. The remaining are spread all around the country, including in Madeira and Azores. Left out from this operation stand the buildings used by Fidelidade and its distribution network (shops and mediators).
The president also stated that “there are a lot of good assets for the real estate development”, an area in which Fidelidade lacks competence. In parallel to this operation, the insurance company will adopt a new strategy of real estate investment, focused on larger and more emblematic buildings. In addition, Fidelidade is building a real estate assets manager society to further professionalize the management of these assets.