The two supermarkets were sold by the open-ended real estate investment fund Imofomento, managed by BPI Gestão de Ativos (BPI GA), to a Portuguese fund. JLL’s Private Wealth team, part of JLL’s Capital Markets Department, just completed the sale of two supermarkets leased to Pingo Doce in Quinta do Lago and Vale do Lobo, two of the Algarve’s most well-known resort areas. JLL acted on behalf of the seller in the transaction.
Pingo Doce will continue to lease the properties, which were sold for around €6 million. The store in Vale do Lobo is located near the entrance to the resort and comprises approximately 900 m2 of gross construction area. Located in the Praça Buganvília area is the Quinta do Lago resort shop, which totals around 630 m2.
According to Fernando Ferreira, Head of Capital Markets at JLL, this transaction “reflects investors’ growing interest in supermarkets and food retail in general. Covid-19 has led to a marked increase in appetite for such assets due to its resilience. Such businesses have had particularly positive operating performances of late, besides offering low risk and long-term profitability.
Mr Ferreira added that this is “a type of asset suited to various investor profiles, including private investors, whose investment tickets generally do not go much beyond 5 million euros. Therefore, this type of product has been increasingly in demand.”
The executive added that “JLL has been very active in the Algarve, where many opportunities are beginning to arise in areas such as retail and offices. We recognise the enormous potential of the real estate market of this region, and for this reason, we already have a permanent team with an office in Quinta do Lago, prepared to give full support to our clients not only in the investment area, but also in other service lines.”