Merlin Properties pays €112.2 million for Novobanco headquarters

Novobanco has already found a buyer for the historical headquarters of Banco Espírito Santo (BES) in Lisbon. According to a statement sent on Monday to the Portuguese Securities Market Commission (CMVM), a Sale and Purchase Agreement has already been signed for €112.2 million. The buyer was not disclosed, but ECO knows that it is Spanish company Merlin Properties.

“Novo Banco, SA (“novobanco” or the “Bank”) informs that, following a competitive bid process, the Bank signed Sale and Purchase Agreement for the sale of its current headquarters building in Avenida de Liberdade, Lisbon,” says the statement, also adding that “the sale price totalled 112.2 million euro.”

During the sale process, at the non-binding bid stage, more than a hundred entities signed the confidentiality agreement, including Allianz, Vanguard Properties, Vogue Homes and Eastbanc. Luxembourg-based Rosewood Capital and Spain’s Merlin Properties reached the final stage. The latter came out as the winner, according to sources in the real estate market.

The property was built in 1980 and comprises nine floors above ground, in an area of 15,477 square metres, plus six underground floors, with 172 parking spaces. Novobanco has mandated JLL and Cushman & Wakefield to market the building, which was presented to investors on April 18, with a base value of €95 million, as ECO reported at the time.

“The completion of this transaction, on agreed terms, is expected to have a positive impact of c.55 million euro in 2022 net income,” says Novobanco. In the third quarter of 2022, the bank expects to close this sale.

“The completion of the sale announced today and a number of other assets sales, signed in 3Q 2022 to date which are part of the envisaged measures of novobanco Group to accelerate the sale of non-core assets, is expected to increase novobanco capital ratios by c.40bps,” adds the bank.