Tishman Speyer purchases first Portuguese investment

Tishman Speyer, a real estate developer, owner, operator and asset manager, has acquired a new office asset located in Lisbon via the Tishman Speyer European Core Fund (TSEC). The company has also signed a EUR28 million seven-year community-impact linked real estate financing with Crédit Agricole CIB.

Currently the Portuguese headquarters of multinational advertising agency WPP, the former automobile showroom is located on Lisbon’s vibrant riverfront neighbourhood and benefits from vast and stunning views over the river Tagus and the city. Completely stripped in 2008 to become a hotel, the building was left in poor condition but was later reinvented by WPP with a bespoke design concept promoting flexibility and openness.

The credit facility includes an innovative social impact feature whereby the bank partially waives its remuneration and Tishman Speyer makes a matching contribution to a selected Lisbon-based charity on an annual basis.

This innovative partnership is the third of its kind for Tishman Speyer and its TSEC Fund, a fund promoting environmental and sustainable characteristics under Article 8 of the European SFDR regulations. It will build on numerous positive ESG initiatives undertaken by the group in recent years and make a positive contribution during a challenging Covid environment in Europe. The total amount will be funded in equal parts by TSEC and Crédit Agricole CIB.

Philippe Joland, Senior Managing Director and Martin Simonneau, Managing Director at Tishman Speyer, says: “As the tallest building within the neighbourhood, this building’s views give the impression of literally floating above Lisbon – its roof terrace was actually designed as an important common space with sensational views of the surrounding area, a critical feature for next-generation offices.

The inclusion of this innovative solidarity feature for the third time in 2021 is another example of the significance we place on supporting communities at the foot of truly exceptional buildings. We are very grateful to Crédit Agricole CIB for their continued support and are glad to reinforce the strong and sustainable relationship we have built over the years.”

Guillermo Bergareche, Managing Director at Crédit Agricole CIB, adds: “After the arrangement of two pioneer solidarity loans implemented last year with two French REITS, Crédit Agricole CIB is particularly happy to do the third transaction of this type with Tishman Speyer as a testimony of our longstanding partnership and shared values. We are also proud to have supported this highly regarded global Real Estate Investor for its first investment in Portugal. This is a new cornerstone in the development of Crédit Agricole CIB leading real estate franchise in Iberia”.

The Tishman Speyer European Core Fund is the company’s European open-ended core vehicle with some EUR2.7 billion in assets currently under management. The Fund owns and manages high quality properties in London, Paris, Frankfurt, Berlin, Hamburg, and Lisbon and was awarded a 5 Green Star rating in the 2020 GRESB survey.

Tishman Speyer was advised by Uría Menéndez. Crédit Agricole CIB acted as arranger and lender in this operation and was advised by Garrigues.