INVESTMENT OPPORTUNITY HEALTH CARE, FOZ DO DOURO, PORTO July 2016 COLLIERS PORTUGAL Accelerating success.
CONTENTS THE PROPERTY LOCATION MARKET OVERVIEW PHOTOS
THE PROPERTY Great opportunity to invest your money in a highly versatile property. Currently a health care clinic, the building can maintain the same use (it s a profitable economic activity) or be easily - and cheaply - adapted into a boutique hotel (given the city s tourist growth and the appealing building/location) or a small senior residence (attractive segment given the aging population). Prime residential location in Porto, where we can find the most expensive properties and therefore the individuals and families with the higher level of income. FEATURES > Iconic, historical and beautiful building, fully renovated in 2010. > Built area: 877 sq m; Land: 747 sq m. > Currently occupied by a health care clinic and a restaurant. Easily adaptable to other uses, such as senior residence or a boutique hotel. > Facilities: A/C, fire and burglar alarm, surveillance video, elevator, chapel. STRENGTHS > Privileged location, just alongside the river bank, with astonishing views over the Douro and the sea. > Porto s most prestigious residential location. > Very good car access and excellent public transportations (tram and bus). > Intense tourists movement (tram and sightseeing bus tours). TERMS AND CONDITIONS > Owner is selling 100% of the property. Not for lease.
LOCATION PRIME LOCATION > Located at Foz do Douro, alongside the river and very close to Passeio Alegre. It s the city s prime residential location. ACCESS > Good car access: close to an entry to the VCI (Porto s main interior road). > The sea coast and the beaches are within walking distance. TRANSPORTATIONS > Good public transportations network: bus and tram stop in front of the property, as are touristic transportations (sightseeing bus).
MARKET OVERVIEW PORTUGAL, A PROFITABLE MARKET 2015 and 2016 have been record setting years for the real estate investment market, with total amounts that are more than three times bigger than the average of the last decade. This positive trend is expected to continue in a nearby future, mostly sustained by foreign capital. Portugal means a stable and safe country, with a very good quality/price ratio. A VERSATILE PROPERTY Maintaining the current use: Foz is a secondary offices market with a small presence (restaurants, clinics, financial institutions), but good occupancy rates and high rents. Most of the office buildings come from the rehabilitation and adaptation of old residential houses. Average rents: 15-20 /sq m. Average prices: 2.250-2.750 /sq m. Yields: 8% to 8,5%. Adapting to a senior residence: The population pyramid shows clear signs of an aging population. This fact, combined with the poor quality of the existing supply, translate into a great investment opportunity. Key numbers: > 58.695 individuals with +65 years old in the municipality (more than 300.000 in the whole metropolitan area).
MARKET OVERVIEW Adapting to a boutique hotel: Porto is a fast growing city break destination. The number of hotel guests in 2015 was around 1.5 M, 14% higher than the previous year. For 2016, Colliers estimates that both RevPar and ARR will increase almost 20%, which stands out the local market remarkable growth process. TOURISM KPI 2014 2015 2016 (f) 16/15 PORTO Source: Turismo de Portugal (f) forecasted data Occupancy rate 60,7% 66,5% 73,1% 10% ARR ( ) 57,0 59,0 70,0 19% RevPar ( ) 25,5 30,6 36,3 19% Guests (thousands) 1.294 1.473 1.621 10% Bed nights (thousands) 2.549 2.890 3.213 11%
PHOTOS
PHOTOS Our Team: JOAQUIM CHAMBEL General Manager +351 21 350 5841 joaquim.chambel@colliers.com VASCO CARVALHO Hotels +351 935 612 840 vasco.carvalho@colliers.com Contact us: Alameda Jardins d Arrábida, 1168 4400-478 V. N. Gaia Portugal Copyright 2016 Colliers International. The information contained herein has been obtained from sources deemed reliable. While every reasonable effort has been made to ensure its accuracy, we cannot guarantee it. No responsibility is assumed for any inaccuracies. Readers are encouraged to consult their professional advisors prior to acting on any of the material contained in this report.