Property investment in the north in the midst of crisis: Israelis bet on building hotels and houses
Headed by the Fortera group, new projects total 180 million euros. Since 2015, nine projects in the same region have been completed.
With close to a dozen real estate projects already completed in the northern region of Portugal, the Israelis of Fortera are betting on the national market, despite the crisis installed due to the Covid-19 pandemic. After having invested more than 65 million euros between the construction of projects and the acquisition of land and real estate, this group is now preparing to fly higher and concentrate on the execution of more ambitious projects, with investments in the order portfolio of 180 million euros.
“Right now, we are divesting our small projects and focusing on the big challenges and projects we have in our portfolio,” said Elad Dror, CEO of Fortera, to Business, detailing that “the year of 2019 was a break, when we made strategic acquisitions – we did it below the market price, which allows us greater flexibility and capacity to overcome any market fluctuation ”.
Regarding the decision to proceed with investments in full pandemic, the manager explains that, “although Covid-19 has an impact in the short term”, the real estate agent is “optimistic” in relation to its investments in Portugal. “Fortunately, we don’t have any hotels – ours are scheduled for 2023-2024, and we all hope to return to normal by then,” he claims.
As for the residential segment, he argued that Fortera’s target market, “which is the local market, will continue to have a strong demand for housing in large cities”. Regarding Portugal’s situation in relation to the pandemic, the Israeli businessman considered that, “unlike his neighbors, he has so far managed to avoid total chaos, which is very important for the investors we lead, but above all for the country”.
New projects in the pipeline
In May of last year, for example, they bought a plot of land on Rua General Torres, in Gaia, next to the D. Luís I bridge, where it is planned to start “in November” the construction of “a new four-star hotel, with 64 rooms, which will be explored by a Spanish group”, the manager also told the newspaper, without identifying the operator. The investment “is around 8/9 million euros and will be ready in the summer of 2023”.
And because this city is “one of the main targets” of Fortera, the Portuguese developer of Israeli capital acquired a land of 54 thousand square meters, at the back of the City Hall, and is “in the final stage of acquisition” of another 44 thousand square meters. , “In the most attractive place in the city, with the best views and the best access to all the points of interest in Gaia”, Dror guaranteed, without revealing the location.
The first site aims to build the Skyline project, budgeted “at 80 million euros” and which consists of a congress center with 2,500 seats, a five-star hotel with more than 250 rooms and a multi-purpose center, with the planned start of the work to the next year. “The congress center will attract conferences from all over the world and will allow the city to become a center of knowledge, innovation and creativity”, emphasized the businessman to the daily.
The other land, in a project also budgeted at 80 million euros, is intended for the construction, starting also in 2021, of a residential complex with “more than 300 apartments”, distributed over three towers, to be built “between three to four years”. Meanwhile, in Porto, it will start, still this year, with an investment of 47 million euros in the construction of a hotel and 200 houses.
In the port area of Bonfim, the Israeli group Fortera expects to move forward soon with the construction of a five-star hotel and a residential complex, in an investment in partnership with the Israelis also Issta Lines and Fattal, which are the largest travel agency and the largest hotel group in the country, respectively. The hotel, which will have 258 rooms and about 16,500 square meters of construction area, will be born on Avenida Camilo, opposite the Alexandre Herculano Secondary School, in an investment of 27 million euros.
Nearby, on Rua do Bonfim, Fortera and its partners will invest 20 million euros in the construction of a project with about 200 apartments. “We will start the construction of both projects by the end of this year, to finish in the summer of 2023”, guaranteed CEO Elad Dror.