The French from Corum are interested in2 or3 properties in Portugal.

Portugal remains on the radar of Corum Investments, a French-origin investment company, despite the 2% cap on rent increases. The company plans to increase its investments in commercial real estate in the country and is already considering "two or three" objects "outside of Lisbon".

Details were not disclosed, but José Gavino, CEO of Corum in Portugal, said the properties that Corum Investments was interested in were "outside Lisbon", including one located "in Porto". These properties are linked to the logistics or office segments, which is the group's bet. Responsible also does not rule out acquiring buildings where hotels operate. "We have also been talking to some people in the hotel business" and, if we get what we want in terms of profitability, we can do a deal that settles "with rents and profits distributed" to investors in the funds.

The French group manages three investment funds (Origin, XL and Eurion) combining a real estate portfolio worth 5.5 billion euros. In the portfolio of these funds, Portugal represents about 1% of assets, as shown by the 14 properties in which about 100 million euros have been invested. "The first time we invested in Portugal was in 2014 in five Pingo Doce buildings, with a return of almost 8% at that time," José Gavino told reporters, adding that at that time "nobody wanted to invest" in the country.

Last year, the Corum Group bought for 10 million euros the premises of the Fusion Fuel electrolyzer plant in Benavente in a sale and leaseback operation. They also acquired for 16 million euros the Heroísmo office building in Porto. Among the 14 properties owned by Corum in Portugal are, for example, the three buildings (in Braga, Lisbon and Porto) where the Rumos group operates, or the building occupied by the Unicre head office in Lisbon.

The funds have had a profitable year

In the context of an inflationary environment where many investors are becoming more cautious about deals, Corum says the outlook is positive. This is because, with the exception of Portugal, where there is a cap on rent increases, in the 17 countries where the group has real estate, the acceleration in inflation "has been one of the best things that has happened" because updating tenant payments brings "more returns to our investors." In addition, "the consequence of higher inflation is higher interest rates", which discourages market participants and therefore "there is less competition" when buying assets, which allows to get "better prices", also explains Corum's CEO in Portugal.

The French group's asset list includes some assets of Crédit Suisse, Philippe Servaisy, director of real estate and CEO of Corum Group, told reporters during a meeting at the management company's headquarters in Paris.

Corum Origin Foundation

In total, the Corum Origin fund, which has been in operation for eleven years and has 47,661 subscribers, closed 2022 with a net profit of 132 million euros.

Corum XL Foundation

As of March this year, Origin had 155 properties in its portfolio - half of which are office buildings - occupied by 339 tenants. Corum XL, established in 2017, had 42,441 investors in March this year and closed the year under review with a profit of €72 million, or €11.07 per participating unit. XL offers an annualized yield of 5% and the average lease term exceeds nine years. Last year, the fund acquired 12 assets worth 421 million euros. At the end of the first quarter of this year, XL had 70 buildings in its portfolio - of which 75% are office and 15% retail - occupied by 176 tenants. XL's largest deal in 2022 was in the London Borough of Wimbledon, where it acquired a €36 million office building occupied by Fortius - an orthopedic and sports company - on a 4.3-year lease.

The journalist visited Paris at the invitation of Corum Investments.