Essential Business, the 14Th Edition of the Magazine

Nº14 April / June 2021 PORTUGAL ON THE MOVE

BUSINESS

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Editorial Director Cátia Matos - [email protected] Features Editor Chris Graeme - [email protected] Art Director João Cardoso - [email protected] Contributing writers Chris Graeme, Marina Watson Peláez Comercial Director Paula Mouco - [email protected] Proofreading Marina Watson Pelaez Subscriptions subscriptions.open-media.net NELSON REGO Printed by Grafisol - Edições e Papelarias, Lda Rua das Maçarocas Abrunheira Business Center nº 03 Abrunheira 2710-056 Sintra Welcome to Essential Business, the 14th edition of the magazine. Tel.: +351 219 158 150 [email protected] In this issue, we highlight the importance of large, televised sporting and music events for brands Lisbon Office in conveying their products and corporate messages to different audiences. We have focused on Av. Engenheiro Duarte Pacheco, Torre 2, 10º, Fracção 11 1070-101 Lisboa two events in Portugal: The Millennium Estoril Open which brands have decided to continue Tel (+351) 213 224 812 supporting this year in spite of no live spectators, and Rock in Rio, which although sadly has been [email protected] cancelled this year, will return next year. We speak to João Stilwell Zilhão, partner of what has Algarve Office become Portugal’s most famous tennis tournament, and Roberta Medina, the businesswoman Apartado 59, and producer of what is now one of the world’s most successful music festivals. Parque Empresarial Algarve 7, 8401-901 Lagoa Tel (+351) 282 341 333 Fax (+351) 282 341 360 But brands do not confine their partnerships to events. The increasing trend for major interna - [email protected] tional luxury lifestyle brands to become associated with residential properties has reached London Office Portugal. We take a look at how major hotel chain brands are putting their exclusive names to 40 Craven Street, Charing Cross branded residences, in both Lisbon and the Algarve. Essential Business also speaks to the London WC2N 5NG, England managing director of the Portuguese Association of Resorts, Pedro Fontainhas, about why Tel: +44 (0) 207 389 0527 Portugal’s top-quality resorts are becoming even more desirable during Covid-19, as overseas Distribuição retired and relocated second-home buyers place a premium on space in low population density VASP - Distribuidora de Publicações, Lda MLP: Media Logistics Park areas in some of Portugal’s most beautiful places. Quinta do Grajal - Venda Seca After the disaster that was 2020 and the first quarter of 2021, some of the moratoria granted to 2739-511 Agualva Cacém businesses will end, and with them, an expected avalanche of credit defaults or Non-Performing Tel (+351 214 337 000 [email protected] Loans is looming. We speak to Nelson Rêgo, director of Prime Yield (Gloval) who knows the NPL market in Portugal well and how profits can be made from restructuring businesses that, for one Published by OpenMedia Europe S.A. reason or another, have found it impossible to continue without external support. Yet for all the business and tourism uncertainty last year, and so far for 2021, Portugal’s commer - Periodicy Trimonthly cial property assets look set to continue to enjoy the fairly strong demand from institutional and family office investors that it has had over the past four years. Essential Business asks both Nelson Circulation 6000 Rêgo of Prime Yield and Eric van Leuven of Cushman & Wakefield what is in store for Portugal’s property market this year and beyond, and talks to several experts on the Portuguese real estate C.E.O. Miguel Ladeira Santos investment market.

Chris Graeme, Editor

While every effort has been made to mantain the integrity of our advertisers, we accept no responsability for any problem, complaints, or subsequent litigation arising from readers’ response to advertisements in this magazine. We also wish to emphasise that views expressed by editorial contributors are not necessarily those of the publishers.

Copyright Essential Business 2018© Reproduction of any part of this magazine is strictly forbidden Estatuto editorial Publicação registada na Entidade Reguladora para a Comunicação Social com o A revista Essential Business pretende dar a conhecer à comunidade empresarial e internacional em Portugal e a quem visita o país em trabalho, para eventos profissionais número 127106. DirectorCátia Matos Propriedade Open Media Europe S.A. ou para investimento, a realidade e atualidade sobre negócios em Portugal. NIF 515462063 Administrador/Presidente do Conselho de Administração Miguel Ladeira Santos Enquanto temas relacionados com a imobiliária e o turismo são uma presença constante, a revista e os seus suportes digitais cobrem todas as áreas de negócio, incluindo 1 - É garantida a liberdade de imprensa, nos termos da Constituição e da lei. a saúde, o retalho e as mais diversas indústrias. 2 - A liberdade de imprensa abrange o direito de informar, de se informar e de ser informado, sem impedimentos nem discriminações. A revista Essential Business assume o compromisso de assegurar o respeito pelos princípios deontológicos e pela ética profissional dos jornalistas, assim como pela 3 - O exercício destes direitos não pode ser impedido ou limitado por qualquer boa-fé dos leitores. tipo ou forma de censura.

www.essential-business.pt 4 12/04/2021 18:46

Essential Features

8 News MEGA PROJECTS FOR GREATER LISBON

10 NPLs EVERY CLOUD HAS A SILVER LINING

14 EU Presidency EUROPEAN RECOVERY

16 Renting your property? TRUST EXPERTS 10 18 Rock in Rio BIG FOR BRANDS 18 34 24 Portuguese funds A SAFE BET

30 Angola THE UK’ S NEW TRADING PARTNER ?

32 AmCham PORTUGAL -US TRADE AT AN ALL TIME HIGH

34 Estoril Open NOT JUST ABOUT THE TENNIS

38 Prime Yield A BIG PLAYER IN IBERIA 24 40 Property development STRANGLED BY TAXATION ?

42 W Residences Algarve PORTUGAL ’S FIRST LUXURY LIFESTYLE BRAND

46 Residential resorts COVID -19 BOOSTS INTEREST

48 Going to the chapel? PORTUGAL ’S WEDDING DAY BLUES

52 Portugal’s debt management HAS IT BEEN DERAILED ? 62 54 Being a consul A DREAM JOB

56 António Cardoso e Cunha THE VISIONARY WHO CHANGED LISBON

58 Thales Portugal PORTUGAL ’S PARTNER FOR TRANSPORT INNOVATION

60 The Mindful Business Charter TACKLING STRESS AT WORK 62 International Club of Portugal A SHINING EXAMPLE OF ASSOCIATIVISM 48

www.essential-business.pt 6 Essential News Essential News

Oeiras Council spearheads marina mega project

Oeiras Municipal Council is to spearhead a mega marina project at Cruz Quebrada on Portugal’s upmarket Cascais-Estoril riviera.

The project promises to breathe new life into the area with a mixed upmarket development that will not only include the yachting and boating marina, but also apartments, offices, shops and eateries. An operation to sub-divide parcels of land earmarked for the cons truction of the project called ‘Porto Cruz’ has just completed the public consultation phase. Oeiras Municipal Council will require a bank guarantee from the landowner for the development of the mega project on the Foz de Jamor before granting a development licence for the project and all its amenities. In the technical dossier that accompanies the process, it states that the council will “condition the deeds of the urban building operations, the building area and ensure the schedule for the construction timetable for the riverfront, and that the bank guarantee should cover the construction of the same”. According to the council’s urban planning services, “the current sche duled work on the parcels of land will have significant impacts on the use of the area to the extent that the full use of the development in terms of quality, and without compro - mising the harmony of the territory in which it finds itself will only take place when the marina and other associated infra - structures are in place." Oeiras Municipal Council says that the project is “indispensable” since there should be a marina at Cruz Quebrada. The land on which the marina will be developed is owned by the real estate group SIL. The parcels of land are currently occupied by the former premises of Lusalite and Gist-Brocades but will be transformed into five plots on which six buildings for housing, with 325 homes in a private condominium project will be developed. There will also be a hotel, offices and commercial units. The architectural side of the project will be coordinated by Miguel Amado Arquitectos and also will feature 55,000m2 of green spaces, a cycle path, a light railway that will link Jamor and Lisbon, and new road and pedestrian links to the coastal Almada megacity development road known as the Marginal that links Lisbon, Oeiras, Estoril and Cascais.

A new megacity projected for the South bank of megaproject that is now much more ambitious in a common strategy Lisbon’s Tagus river at Almada will involve an initial between the council and investors. €800 million investment and could create 17,000 Among the landowners and investors who have shown an interest in new jobs. the innovative potential of ‘Innovation District’ are companies such as Cordialequation, Rustik Puzzle, SOSTATE, Maia e Pereira, Emerging The ‘Innovation District’ project from the NOVA University Lisbon and Ocean, Rio Capital, Orbisribalta, the Serra Henriques Foundation and a group of landowners with land and property in the area of Monte the Egas Moniz Higher Education Cooperative. da Caparica and Porto Brandão promises to create a new centre that Neither an estimation of total costs nor a full execution timeline to will attract international companies and investment to the greater complete the ‘Innovation District’ was given. Lisbon area. “The main assets in the knowledge economy are people, their talent and the networks they establish among themselves, and this is at the heart of ‘Innovation District,'" said the vice-dean of NOVA University Lisbon, José Ferreira Machado, at the project’s presentation, adding that he foresaw the completion of the ﬁrst phase of the project by 2030. And since people need “places to live and interact, places where they can reside, work, talk and enjoy leisure time, cities like the one that will be developed in Almada will serve to reinforce the internationalisation of the greater Lisbon area,” he continued. The vice-dean of NOVA University Lisbon added that some projects, such as the works at the Technology and Science Faculty — the building of sports facilities and a shopping area which are Phase 1 of the innovation hub — should start this year given that “part of the ﬁnancing comes from European community funds and must be applied by 2023." Chair of Almada Council, Inês de Medeiros, emphasised the involve - ment of public and private investors, both national and overseas, in adapting what had been initially more modest projects into a

www.essential-business.pt 8 www.essential-business.pt 9 Essential Assets

Where there’s muck there’s money

Non-performing loans (NPLs) have increased significantly in Portugal, but also across Europe since the financial crisis in 2008. But Portugal’s banks are in much better shape to deal with the fallout from the current health crisis, and for some companies, there’s money to be made from default portfolios

TExT CHRIS GRAEME

etween 2008 and 2014 Portugal’s hard work achieved by the banks in for the Portuguese economy as a whole, Bbanks suffered a veritable rash of r ecent years. which grew 2.2% (0.4 pp year-on-year), Non-Performing Loans (NPLs). The ratings agency Moody’s forecasts the banking system showed considerable This had been mainly due to poor that bank NPLs will increase by around improvement in terms of efficiency, supervision and governance, aggressive 9% with the end of the moratorium, com - liquidity, asset quality profitability and lending and acquisition strategies, loose pared to 5.5% in 2020 and the Bank of solvency, and had been quite successful credit underwriting policies, high expo - Portugal concurs. in clearing around €20 billion in NPLs sure to sectors that were most impacted Nevertheless, Portugal’s banks have off its balance sheets. by the financial crisis (such as real estate set aside a buffer of up to €2Bn to offset According to the Portuguese Banking and in Portugal over-leveraged tourism the expected exposure. Caixa Geral de Association (APB) solvency was strongly resorts) and lax credit controls. Depósitos alone has set aside €300 reinforced: CET1 reached 14.3% in 2019 After some years of improvement, the m illion to cover “credit default and other (versus Core Tier 1 of 7.4% in 2010), situation looks set to deteriorate again, unexpected impairments” resulting from liquidity (loan-to-deposit ratio of 87-1% with the prolonged economic downturn the pandemic. versus 158.7% in June 2010; liquidity pushing highly leveraged borrowers into And just as well. In the first nine coverage ratio at 218.5%; although still financial difficulties and leading to a months of last year, the net results of low, profitability improved (RoE reached large number of defaults. P ortugal’s banks plummeted 65% to 4.9%); non-performing loans had an Increased regulatory requirements for €588 million like-for-like on 2019 be - impressive downwards development in NPL management (including the Euro - cause of the pandemic and the money set Portugal, falling by €33.3 billion since pean Central Bank (ECB) Asset Quality side for impairments. the maximum level of €50 billion in Reviews, harmonisation of NPL classi - The Association of Portuguese Banks June 2016. fication and disclosures, and the intro - (APB) in its summary for Q4, 2020 states duction of specific NPL codes and that the total offset for eventual impair - AIMING FOR A SOFT LANDING directives, have also contributed to the ments stood at €2.05Bn, which corres - The president of the Portuguese increase in the overall NPL pool in ponds to an increase of 66%. In this Banking Association, Fernando Faria de Europe as a whole. context, the profitability of the banks has Oliveira, says that the impacts of the And with the end of moratoria in again suffered a setback with profitability recession on the banking sector, its profi - Portugal from September this year (the ratios of around 1.7% when for the same tability, and in terms of an increase in government is discussing extending it period in 2019 it was 6.2%. The ratio for loan defaults and therefore NPLs/NPEs with banks for some cases until 2022), covering NPLs was boosted to 55.9%. In (Non-Performing Exposures) is inevitable the Portuguese banking sector is likely to 2019 it stood at 51.5%. and will only be fully felt when the mora - suffer a rash of credit defaults and bank - The asset quality of Portuguese banks toria, granted in line with the guidelines ruptcies, as loans and interest once again has improved significantly over the past set out by the European Banking Author - have to be paid, undoing some of the 4 years. As of June 2019, a bumper year ity (EBA) and viewed by it as a tool to

www.essential-business.pt 11 Essential Assets Essential Assets

avoid cash-flow problems and not insol - the General Managing Director of the cream in Portuguese) from Novo Banco. further €6.9Bn of national NPL stock vencies, finally end. company that has offices/representations Presumably, the ‘cream’ was less than coming on line," says Prime Yield’s It is why the Portuguese banking in Lisbon, Madrid, São Paulo, Maputo, fresh. F rancisco Virgolino. "To get some idea, sector has always argued that the ending Luanda, Cape Verde and Athens. This time, again, the fund involved that amount corresponds to more than of the moratoria should be done in a Despite the fall, investor interest in was Davidson Kempner and the portfolio, half of the current stock of NPLs in the “planned and phased manner” to ensure this type of asset has remained, however, called ‘Project Ellis’ was for sale at €170 system. However, this impact will only be a “soft landing” and avoid a “cliff-edge” and the sale of NPL portfolios is million, while a second portfolio, ‘Project visible by the end of the year, and espe - occurrence resulting from companies expected to step up in the first half of Webb’ was sold to the fund Arrow for cially in 2022." which, despite being viable, might not, this year. €450 million. by the end of the moratoria, be in a “Since January, the sector has already Francisco Virgolino, Head and Part - UNDER PRESSURE condition to generate enough cash-flow seen portfolio deals worth €700 million, ner of NPL&REO Portugal at Prime The Portuguese banking sector will to meet their loan obligations. while another €1.2 billion is already in Yield says: “Naturally, the pandemic continue to feel under strong pressure in “In Portugal, despite the banks having the pipeline, including ones that are has delayed or even required the restruc - 2021. Despite the expected economic increased cash provisions to offset credit already being negotiated or are already on turing of various NPL sale processes r ecovery, whenever it comes, the “burden defaults risks, it is difficult to calculate the market,” says Rego. in 2020.” of non-performing loans will weigh the potentially disruptive effects of the For example, Novo Banco announced Despite a slowdown being expected h eavily on its financial institutions this withdrawal of the moratoria, how the in March that it had signed a purchasing last year in the market, in the region of - year,” according to the Canadian rating quality of assets will evolve, and the and sale contract with Burlington Loan 25% to around €6,000, 2020 was a rough agency DBRS. extent of losses,” says Faria de Oliveira. Management DAC, a company linked to year for the sector with less than €1 “Banks in Portugal continued to re - “Those banks with larger capital and advised by Davidson Kempner Euro - billion transacted. duce NPLs by €9 million in 2020, how - ratios and less ratios of NPLs will, natu - pean Partners LLP based in Ireland, for “The market was almost at a standstill ever, Portugal’s banks still hold high levels rally, be in a better state to face the fall - a portfolio of NPLs and assets with a until September when we noticed some of NPLs and have high NPL ratios rela - out from the crisis while planning and nominal value of €216.3 million in renewed activity and various deals began tive to other European banks and above monetary, fiscal, prudential and recovery December 2020. to be closed towards the end of the year,” the average of our sample," DBRS states. support mechanisms are all determining According to the bank owned by US adds Virgolino. “Some €46 billion in loans are frozen factors in dealing with the crisis and off - vulture fund Lone Star and managed by due to the moratoria regime (EBA) and setting its effects on the Portuguese António Ramalho, this operation should THE OUTLOOK FOR 2021 there are many concerns about how banking sector,” adds Portugal’s bank have a direct (and positive) impact on The Managing Director and Head much of this volume can turn into NPLs. association chief. the results and capital of the institution of Portfolio Valuation at Prime Yield The real impact will only become visible this year. (Gloval), Nelson Rego, thinks that 2021 from Q4 2021, but we think that 15% of BETTER PREPARED Last year, Novo Banco had other should be a dynamic year. current loans in moratoria could become Paulo Macedo, the CEO of state-run portfolio sale processes underway, “On the one hand, business from NPLs,” says Rego. bank Caixa Geral de Depósitos, which is namely ‘Project Carter’ comprising 2020 coming through is progressing at a “This would mean another €6.9 preparing the sale of €450 million in 12,000 loans that had been sold to the healthy rate, with close to €2 billion b illion entering the stock, which then NPLs, says that Portugal’s banking CRC fund in a consortium with Arrow. worth of portfolios on the market from would go up to over €20.0 billion, bring - system is much better prepared and This involved a portfolio of NPLs amongst operations that have already ing “fresh” portfolios to the market. So, capitalised to overcome the current crisis with a price tag of €79 million, but been achieved, and others that have been even though there is all this uncertainty and have an active role in assisting the which ended up being sold for €37 either identified or are currently under - around when the moratoria will end, one country’s economic recovery. million. The bank said at the time that way," Rego says. thing is certain: the NPL stock will grow The sale of NPL portfolios in Portu - the deal had been “marginally positive” “On the other, apart from the growing in Portugal over the next 18 months, as gal was down by 87.5% to €1 billion in and had a “direct impact” on its capital. interest from investors in this segment, well as the potential for deals. And 2020, according to the real estate evalua - And in February this year, bank BPI the offer of NPL portfolios should grow i nvestors are keeping track of events to tion and asset advisory consultant Prime sold an NPL portfolio for €300 million considerably this year,” he adds find out where the best opportunities will Yield’s latest market study ‘Keep an Eye to the European-wide Luxembourg based Rego also points out that with the end lie,” concludes Nelson Rego, Managing on the NPL & REO Markets’ (Real fund LX Partners (LXP), an entity that of the moratoria in September, an ava - Director and Head of Portfolio Valuation Estate Owned). describes itself as “a principal investor lanche of credit defaults is expected, of Prime Yield. “Activity in Portugal represented a no - whose mission is to provide its partners while the pressure will be kept up on One thing is for sure, whenever the table fall (87.5%) on the volume of with exposure to opportunities at arm’s banks to deleverage their stagnant and moratoria finally come to an end, a large around €8 billion transacted in 2019, as length, with preferred terms”. underperforming assets, so new and very proportion of borrowers, both companies a result of a direct impact of the pan - Millennium bcp, another bank with a interesting operations in market offer and families and individuals, will resume demic which froze operations and redi - large presence in Portugal, was busy last should appear. payments on loans and interest, but the rected focus on the financial system and year preparing to sell a portfolio of NPLs “According to the Prime Yield fore - capacity of those borrowers to make government’s extraordinary financial to the same fund that had purchased the cast undertaken for the study, if 15% of p ayments will depend on the economic support for the Portuguese economy rather curiously named portfolio for the amount subject to moratoria ends up shock experienced in Portugal later this through moratoria,” says Nelson Rego, distressed assets ‘Nata 2’ (‘Nata’ means as Non-Performing Loans, that means a year and into 2022. í

www.essential-business.pt 12 www.essential-business.pt 13 Essential Recovery Essential Recovery

Portugal’s presidency in practice would considerably reduce Portugal has been ranked the third most The focus is on developing the infra - the firing range of that ‘bazooka’. positive contributor. structure needed for the next generation focuses on Europe’s recovery Reducing the industry’s carbon foot - And a report by the BBC found that of tech start-ups, as well as growing print is one big focus for the RRF for Portugal was an early leader in investing the right skills base and improving 2021-2026 in order to align Portugal’s in a full network of charging stations for cybersecurity. economy with climate and green targets electric cars and that it has incentivised The initiative, spawned in 2018, is In January 2021, Portugal took over the rotating presidency of the Council of the EU with set out in the European Ecological Pact. citizens to install solar power and renew - hoped to have a tangible impact on eco - the motto ‘Time to Deliver: a fair, green and digital recovery’. Portugal is, in fact, more These European funds are earmarked able energy with lower rates and the nomic growth, education, and innovation able, prepared and willing to use its 12.9Bn share of the EU’s 672.5Bn Recovery for entrepreneurs and business owners oppor tunity to sell energy back to the grid. in Portugal. € € who aim to make structural changes to Portugal also intends to double its Portugal has embarked on a National and Resilience Mechanism on greening and digitalising its economy their production processes, anti-climate renewable energy production by 2030 Reforms Programme which puts digitali - TExT CHRIS GRAEME change measures, low carbon processes, mainly through solar energy, under sation, IoT (Internet of Things), mobility electrification of industrial processes that Portugal’s National Energy and Climate and technology startups at its core. are powered by hydrogen and renewable Plan 2030. provide Portugal with a significant oppor - gases, and adopting energy-saving measu - In fact, Portugal’s dependence on coal, TRANSPORT AND MOBILITY tunity to address the growth challenge res in production processes which use gas and oil has fallen considerably over the In terms of mobility, Portugal has also that it faces," says Sarah Carlson, senior a lternative energy sources including wind, past decades, and in 2018 actually mana - placed transport policy, particularly air vice president for sovereign risk at ratings solar and biomass. ged to power the country for three days on and rail transport, near the top of its agency Moody's. According to the Road to Carbon the trot from renewables alone. EU presidency agenda, both nationally The analyst also points out that Por - Neutrality 2050 (Roteiro para a Neutra - and in Europe. tugal is one of the larger recipients of the lidade Carbónica), industrial emissions GOING DIGITAL On the back of European Year of Rail EU Recovery and Resilience funds in represent around one-fifth of emissions The Portuguese government says it Transport in 2021 and as head of the nominal terms, standing to net €13.2Bn. in Portugal, of which 62% result from also will use EU funds to continue digi - EU’s Transport Council, Portugal aims to Whereas some larger countries are recei - burning fossil fuels and 38% from indus - talising its administrative systems in the contribute to the rapid recovery of the ving more in nominal terms, in terms of trial processes. This is particularly true of public sector while offering incentives to transport sector by ensuring operational a percentage of GDP, Portugal is a very the cement, mortar, glass and ceramics companies to digitise their processes. capacity in different modes and the flow important recipient of these funds which industries as well as chemical and paper In this, it has already made a good of people and goods in the Union. will, says the Moody’s analyst, help “ramp industries. start, first by netting the world’s largest It will also lead and accompany the up the country’s green and digital transi - Nevertheless, Portugal is frequently tech and startups fair Web Summit preparation of an EU Contingency Plan tions” (The EC wants 37% of these funds touted as one of the greenest countries which moved from Dublin to Lisbon in to deal with pandemics and other disrup - to be used for ‘greening’ the economy). in Europe and is often singled out for its 2016 which is now its permanent home, tive crises, and pave the way for a more “Portugal is a great example of an EU positive ecological contribution with over for the time being, anyway. ecological, efficient and resilient trans - country with a backlog of public invest - 50% of national energy consumption In 2020 Portugal launched its Natio - port sector in Europe. ment projects and has a very good track coming from green sources (wind and nal Digital Action Plan which lays down In aviation, the Single European Sky record of being able to absorb EU funds, hydroelectric 46%, biomass 5% and the actions the country will take in lead - project initiative aims to increase the n February the European Commission Portugal’s three main priorities for its which is not necessarily the case in all solar 1.5%). ing the transition. efficiency of air traffic management and Iwelcomed the European Parliament’s presidency are: promoting a European countries,” says Carlson, giving Spain and Wind power has been a particular The fourth pillar of the Portuguese air navigation services by reducing the vote confirming the political agreement economic recovery, the green and digital Italy as examples. winner with wind capacity and genera - Presidency focuses on the Digital Servi - fragmentation of European airspace. By reached on the Recovery and Resilience transition of Europe’s economy, the Portugal has €9 billion to use bet - tion growing rapidly in Portugal. ces Act, which the European Commis - its nature, this ongoing initiative is pan- Facility (RRF) of December 2020. It imple mentation of the European Pillar of ween this year and 2022 with another Wind power adoption in Portugal sion adopted just before the end of 2020. European and open to neighbouring marked an important step towards mak - Social Rights, and strengthening the €3.9 billion defined in June 2022 depen- began in the early 2000s, incentivised by “This has been a long-term political countries. ing €672.5Bn in loans and grants avail - strategic trade autonomy of a Europe ding on the evolution of its GDP over the a continuous feed-in tariff policy mecha - goal for Portugal for some time and we Portugal already has one of the most able to Member States to support reforms open to the world. However, it is the first next two years. nism, coupled with public tenders for have legislative files of enormous impor - advanced and modern motorway sys - and investments of which Portugal will that is grabbing the attention of headlines Last year, when Portugal’s prime mi - connection licenses in 2001, 2002, and tance to deal with during our presidency,” tems in Europe, and although the Com - benefit from nearly €13Bn. worldwide and this is not surprising given nister António Costa made his famous 2005 and beyond. These policies led to says Ricardo Castanheira, digital coun - mission’s ongoing strategy for intel ligent The RRF is the key instrument at the the circumstances of a Western Euro - ‘bazooka’ remark to describe EU emer - enormous success in terms of having a sellor coordinator at the Permanent Rep - and sustainable mobility through digita - heart of NextGenerationEU, the EU’s pean Economy damaged by the ravages gency funds to support Europe’s recovery, large share of renewables providing elec - resentation of Portugal to the European lisation to create safer and greener plan for emerging stronger from the of a largely invisible enemy - Covid-19. the amounts to which he was referring tricity services: wind alone accounts Union (REPER). highways is still part of the work of Por - Covid-19 pandemic. are a small parcel of the total amount (an today for around 23.5% of electricity de - The Portuguese government also tugal's presidency, the Covid-19 pan - Over the next six months, Portugal GOING GREENING estimated 22%). He also said at the time mand in Portugal. signed a memorandum of understanding demic has derailed plans and forced a will lead work at all levels of the Council, “The next generation of EU recovery that the government did not intend, for According to the Good Country (MoU) with US multinational Cisco temporary re-focus on combating its building co-operation between EU mem - funds — €15.3Bn in grants, including the time being, to use the part which Index, which aims to measure the impact to drive a programme of country-wide immediate negative effects on the trans - ber states. €13.2Bn between now and 2023 — will constitutes the loan from the RRF, which a single country has on the wider world, digitalisation. port sector. í

www.essential-business.pt 14 www.essential-business.pt 15 Essential Property Essential Property

is becoming an emerging asset class. At tive profitability. At the outset, someone MVGM International, we view this who runs a business can conclude that if “ACCORDING TO SEVERAL decade as a key moment to revive and everything goes well, local accommoda - STUDIES ABOUT REAL professionalise the residential market in tion is more profitable than a medium to Portugal. Until now, investors have long-length lease. However, this profi - ESTATE IN PORTUGAL, shown a preference for Built to Sell tability is only apparent. Local accommo - CONSTRUCTION OF projects, but we believe the market is at dation has a lot more variables which can RESIDENTIAL BUILDINGS a turning point where new enterprises influence income: occupation, touristic FOR LEASE PROMISES IS will be envisioned and built specifically flow, weather, and the popularity of the for the leasing market, inherently enhan- destination. Also due to the pandemic, BECOMING AN EMERGING cing the role of the professional property some investors turned from short to ASSET CLASS.” manager. medium rentals – 2 weeks to a month. Market tendencies naturally depend The main problem with these medium- on the government, the profile of the term businesses is that utilities are investor and tax issues. Decisions aren’t included. After you factor in water, obvious, so it’s becoming increasingly electricity, cleaning, internet and other important – and profitable – to invest in costs, your outcome will not be as real estate. Rather than immediately sell - profitable as you anticipated. Basically, ing, owners are rethinking their invest - you’ll have the costs of the short term but ments for the long run, instead of the conditions of the long run, which will thinking about immediate profit. be harmful to your investment. Even though we’re going to enter an In our property management, we seek market trends and their effects; possible economic crisis, people will always need to give our clients all the economic, social threats to the profitability of the lease, somewhere to live. Keeping this in mind, and health context they need to make and all variables that influence it, includ - Rent with the help of experts those privileged enough to have funds to informed decisions. We create a long- ing government decisions. invest should really consider doing it. term relationship of trust: we know they The reality is that most people who But, why rent and not sell? And, more treat our house well, we know they will own properties also have their daytime a pandemic-proof investment specifically, why lease and not turn my pay rent on time and we know what to jobs and aren’t available for their tenants property into a tourist accommodation? expect from that relationship. At the end 24/7. Above all, having this professional As stated above, an investor can Build of the day, people don’t really need to go assistance means knowing that the pro - Miguel Kreiseler, Managing Director of MVGM Portugal, explains why professional to Sell and then pursue another project on holiday, but they do need somewhere perty is being taken care of, no matter property management is important for property investors even in a pandemic, freeing or can Build to Rent and convert that to live. where you are and what you’re doing. It’s project into a renting asset for the long This is where it gets tricky. So, I have having a safety net, which keeps the their time to focus on other professional activities or real estate projects run. At MVGM we deal mainly with a property asset and made the adminis - owner up to date with everything they OPINION MIGUEL KREISELER investors who buy a property to monetise. trative decision not to sell it, and to lease need to know to have the most successful When they decide to do so, they also rather than turning it into a short-term outcome. have to pick whether they want to put it rental. But how do I decide everything Of course, the quick-fix solution ore than ever, people are begin - today. Take the example of health: for money in our company, the teacher who in the short, medium or long term mar - else? This is where professional assis - e xists. But this isn’t how markets work, Mning to realise the importance of minor issues, we have a tendency to self- helps our children learn to read, the ket. This decision is all about weighing tance becomes decisive. and it surely isn’t how we operate at having someone specialised in their area medicate (most of the time wrongly), but cardiologist who assures everything is all potential risks and rewards and being For the property’s owner, this profes - MVGM. As H. L. Mencken said, “For of expertise by their side. The global as soon as it gets scary, we seek profes - right with our heart… and it’s no diffe- able to see beyond the one-year time sional assistance means having someone every complex problem there is an pandemic we are living in is teaching us sional guidance and consult with a rent in real estate. There are many frame. In ten years, which decision who guides and advises them at every a nswer that is clear, simple, and wrong”. that being surrounded by experts leads to doctor. If we do that with our bodies, why branches in our sector but I would like to would I regret? step of the way. The list of examples of It is our duty as specialists to be available a proper and more strategic response to wouldn’t we do that with everything else focus on a particular one: professional Due to the Covid-19 crisis, local advice given would be endless, but it to help. As managers of commercial disruptive environments, which seem to in our lives? property management. accommodation is facing revenue losses can include: not to overprice or under- e state, we bring experience, technology be growingly recurrent in our lives. We face this reality every day: the According to several studies about superior to 75% in the second trimester price; what to offer for free, and what and know-how of managing complex The reality of the ‘handyman’ who can driver of the subway we catch to work, real estate in Portugal, the construction of 2020. This confirms the difference to charge extra; when and how to charge businesses, so imagine what we can do to do everything is perceived differently the accountant who takes care of the of residential buildings for lease promises bet ween apparent profitability and effec - the monthly fee; how to act in a crisis; help owners with their houses. í

www.essential-business.pt 16 www.essential-business.pt 17 Essential Events Rock in Rio the music festival that unites different generations and prominent brands

Rock in Rio Lisboa is one of the largest live outdoor events in Portugal with a truly international reach, one which gives its stars a chance to shine and sponsors unrivalled exposure. Although it has now been cancelled this year, President Roberta Medina explains the importance of the event for big brands

TExT CHRIS GRAEME

ock in Rio is today probably one of Gallagher, Duran Duran, A-HA and Ivete Rthe world's most famous rock-pop Sangalo (Brazil), David Carreira and festivals. When the average person thinks Xutos & Pontapés (Portugal). However, it of music festivals, only four instantly was not to be. spring to mind. One, Woodstock, hap - “The decision was taken to sadly can - pened in the late 1960s; two others - cel the 9th edition in June this year and Coachella Valley in the US and Glaston - carry it over to next year,” admits Roberta bury in the UK - are also household Medina adding “the event as we know names. Then, there is Rock in Rio, which and love it only makes sense with thou - because of its international reach, is bigger sands of people of all ages coming to - than any other in the western hemisphere. gether to enjoy the music, the excitement This feat is mainly because of the and the atmosphere that only a live event festival’s recurring nature. The music like Rock in Rio can provide.” festival may have originated in Rio de Although Brazilian entrepreneur and Janeiro, Brazil, but later branched into advertiser Roberto Medina was responsi - other cities such as Lisbon, Madrid and ble for the inception and organisation of Las Vegas. the festival, as well as moving the 2004 Eight editions of the festival have edition to Lisbon, while controversially been held in Rio de Janeiro (1985, 1991, keeping the brand ‘Rock in Rio,’ today his 2001, 2011, 2013, 2015, 2017 and daughter Roberta Medina has taken on 2019), eight in Lisbon (2004, 2006, the mantle of organising the festival, 2008, 2010, 2012, 2014, 2016 and which in 2011 returned to its original lo - 2018), three in Madrid (2008, 2010 and cation in Rio de Janeiro, where the story 2012) and one in Las Vegas, in 2015. all began back in 1985. Despite COVID-19, the organisers Rock in Rio drew in 1.5 million peo - had been planning for this year’s event, ple at its first event, with 700,000 attend - from 19-27 June, to go ahead. It had an ing the second and fourth editions, about impressive lineup including world-class 1.2 million attending the third festival, acts Foo Fighters, Back Eyed Peas, Liam and about 350,000 people attending each

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BRAND COMMUNICATION A MONEY-SPINNER FOR The Rock in Rio organisers work a THE HOST CITY year in advance to communicate and Roberta Medina admits that from an market their events. organisational point of view, Lisbon tends “We understood that a big brand will to work better than Rio, although the last not invest US$20 million in one edition edition in Brazil generated an impressive to reach their market audience for 10 US$180 million (1bn reais). days," Medina points out. When Rock in Rio arrives in a coun - “We realised that we would have to try, the first step is to get the city hall on turn Rock in Rio into a communication board and the support of all the public campaign for the brands where they entities for the 10-day private event, could talk about Rock in Rio while com - which has a huge economic impact on municating their brands, in the same way the city involved. that brands need to communicate at And while the event is private and Christmas or Easter." involves no public funds, that coopera - So, the organisers came up with a tion with the municipal authorities in one-year communication plan, generat - terms of licensing a venue, the police ing news and being a communication and emergency services and traffic con - platform where the brand sponsors could trol, is vital. advertise their brands. “We cannot move 100,000 people to In Brazil, the event attracts over 80 a venue and stop the normal flow of the brands to the venue while in Portugal city and become a problem,” she stresses, there are around 40 brands involved. emphasising that everything has to work “ROCK IN RIO DOESN’T “In our communications campaigns, like clockwork. This means a high level CHOOSE THE SPONSORS, we focused on giving voice to our of pre-planning and organisation. RATHER IT GOES TO THE brands," she explains. "That is the only “At every edition, the organisation way, in the countries in which we ope - works with around 50 public service MARKET AND THE rate, that we can invest much more than entities to guarantee that everything SPONSORS CHOOSE at a traditional festival because we works perfectly when the event is taking THE EVENT. c onstructed the festival with the brands." place,” says Roberta Medina.

of the first three Lisbon festivals. And it rock or alternative music. Instead, this kind of lineup we provide, as the best has grown ever since, Roberta Medina event is global and has an audience that sound quality, world-class infrastructures told members of the Harvard Club of ranges from 15-50. in terms of dressing rooms, restrooms, Portugal and Essential Business partner “With Rock in Rio you’ll find MBB, lounges, restaurants, food service (with - American Club of Lisbon, in February. Samba, Pop, Rock and Roll and Heavy out the long queues), not to mention a Metal because we understood that we high investment in scenography, which A FAMILY AFFAIR wanted to reach a large number of peo - all translates into conjuring a different It started in Brazil in 1985, but the ple,” says the entrepreneur, whose mater - world,” says Roberta Medina. birth of the concept was beset with nal ancestors hailed from Porto. “You don’t see another festival where teething problems due to disagreements “The main motivation initially was to you can see families going to experience with the Rio de Janeiro City Council, promote Rio de Janeiro abroad and give it together with a mainstream lineup that which dismantled the City of Rock over a voice to a whole generation that was reaches so many people,” she adds. public control concerns. looking for freedom after the military And this family and friendly atmos - This led to the second edition being regime. The idea was that it is possible to phere foster a generally peaceful festival. held in Rio de Janeiro’s Maracanã join different people from different back - In Brazil’s rock city, which has seven Stadium in 1991, which went against the grounds, social and political classes, days of events, attracting 100,000 peo - event’s philosophy of not just being about races and genders in peace and harmony, ple, and running from 2pm to 4am, concerts, but a complete family expe - and music was the instrument to bring it works almost perfectly. There are rience in which people spend time people together,” she explains. no fights. together and have fun. “When thinking about Rock in Rio, “If it is possible to bring people from Roberta Medina says that Rock in Rio we don’t just think about putting on great different backgrounds and beliefs is different from traditional rock festivals, concerts, but about providing a special together, in harmony in Rio, then it is which lack infrastructure, are mainly for moment for a big audience of all age possible anywhere. It’s not for music, it’s young people aged 18-30 and focus on groups. That has as much to do with the with music,” Medina stresses.

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days in Lisbon, but 5.8 million viewers in vehicle to bring five sub-brands together Portugal followed the event live on TV, for the first time to launch the Millen - “YOU DON’T SEE ANOTHER radio and social media. That explains why nium brand. The event was a big success FESTIVAL WHERE YOU CAN the organisers see every relevant commu - for the bank proving that Rock in Rio is SEE FAMILIES GOING TO nication channel as a partner together an effective platform for brands to reach with the brands which invest in those their consumers. EXPERIENCE IT TOGETHER media channels. WITH A MAINSTREAM “We identify the media platforms and HEALTH AND PLANNING LINEUP THAT REACHES look at the kind of audience they have One of the Rock in Rio (Lisbon and SO MANY PEOPLE.” and the people who identify with it. We Madrid) team members who has had the study the platform’s reach and see if it longest association with the festival is will fit with our audiences,” says Medina. Ricardo Mexia, who has been advising Medina stresses that Rock-in-Rio the organisers on public health issues doesn’t choose the sponsors, but it goes since 2006. to the market and the sponsors choose Mexia, who is a doctor specialising in the event. “Usually they choose us be - public health at the Department of Epi - cause they see that the Rock in Rio brand demiology at the prestigious Ricardo has the same, or similar values and qua - Jorge Institute says that they try to ensure lities to their brands, which can reinforce that if there are any health requirements their brand products.” they “provide it for the organisation, both And the sponsors are impressive in terms of the audience and the acts.” household names in Portugal and some “I also work in other mass gatherings. big international brands such as oil and Rock in Rio is easily the most well-orga- gas company Galp, beer brand Super nised event of its kind, and it’s been chal - Bock, 7 Up, and Vodafone, not to men - lenging to do things differently in other tion the institutional support of the cities that host the festival like Madrid, Lisbon City Council. Las Vegas and Rio where requirements “Crowds are not predictable, we have “The brands want to be close to and regulations may differ,” he says, to know how to deal with many different young people. They want to show them adding that trying to make everything go situations and be creative, so if some - that they are innovative and creative. So as planned is an interesting and challeng - thing happens that is different to what we had brands that decided to be with ing task. we had imagined, we are ready to act,” Rock in Rio because they wanted to Roberta Medina stresses that from an she says. position themselves at the same level as organisational point of view, the slogan is “We can’t do dress rehearsals with the big brands,” continues Medina. ‘Plan, Plan and Plan’ and that means crowds. We have to be ready and pre - Millennium bcp was the main spon - having Plan A, Plan B and other backup pared when the doors open to meet any sor for five editions of the festival in plans to suit almost all eventualities if eventuality," concludes Roberta Medina, Portugal. The bank used the festival as a anything else fails. the Vice President of Rock in Rio. í

In Portugal, while exact numbers are people to come to a country. In Rio, 60% turns, while Rock in Rio invests €38 difficult to ascertain, each edition brings of those who buy tickets for Rock in Rio million in media to advertise the event in around €70 million. come from other Brazilian federal states. over the year. “Lisbon doesn’t have to invest any “In Lisbon, we have around 20,000 “Of course, we sell tickets, but we are money, we make it happen," she points people that come from abroad to the serving as a platform for our sponsors to out. "There’s no public funding involved. festival, while 15% come from Porto and communicate. Everything we say, the In addition to the visibility the city gets, the North, which has a financial impact images we use, all of this communication we also bring in thousands of music on hotels, restaurants and public trans - has an impact on the final result of the tourists." port,” she says. event," Medina explains. For example, in Brazil, every edition She also highlights that TV is still a employs 20-25,000 people, while Portu - MEDIA PARTNERS very important platform. In Portugal, the gal employs around 8,000-10,000 people Media Partners are vital for both the broadcasting rights to transmit the event who are working directly or indirectly on success of the event and the brands in live are awarded to the youth-orientated the event before, during and immediately order to reach a wide audience. entertainment channel SIC Radical. afterwards. At the last event in Brazil in 2019, the In fact, on those days the festival ran, Roberta Medina says the event has a return from the media coverage and SIC Radical netted the highest audience huge impact in terms of tourism and the involvement in the festival was around figures in Portugal. local economy. Entertainment and cul - 2.2bn reais. In Portugal there is around At the last edition in 2019, the festi - ture, she stresses, are things that move €40 million in spontaneous media re - val attracted 280,000 people over four

www.essential-business.pt 22 www.essential-business.pt 23 n 2019 Lisbon was considered the best Iberian economy are not so favourable, ments in cities all over Europe, including Icity in Europe in which to invest in particularly because Lisbon and indeed Lisbon and Porto. Portuguese real estate funds real estate. Last year it dropped down to Portugal, like the other two cities in "Completing a transaction logistically 10th place and this year is at 15th, accor - Spain, are so dependant on tourism is often a challenge, especially for inter - ding to a ranking compiled by PwC and which was hit hard by the Covid-19 crisis. national investors, Teams can’t get on A safe haven in volatile times the Urban Land Institute. “In our experience, every real estate flights and see assets in person, when the This year Berlin, London and Paris are investment has dropped in every market process of notarisation or arranging finan - flavours of the year for real estate invest - in Europe over the last months and for cing becomes more challenging." ment market players, such as funds and obvious Covid-19 reasons," says Kirk Lindstrom says that Round Hill Capi- Real estate funds have always been seen as a safe haven in volatile times of crisis, especially developers. Lisbon was not the only city Lindstrom, Chief Investment Officer at tal benefits from having local teams in when interest rates are at record lows. Although Lisbon has fallen from the top position of to fall out of favour. The outlook for Round Hill Capital, a vertically inte - Portugal to continue its activities and ‘Best City in Europe in which to Invest’ in 1919, to 15th Position this year, international southern European cities is down overall, grated real estate investment, develop - doesn’t face the same headwinds that investors are still in the game for the long haul with Madrid and Barcelona falling to 8th ment and asset management firm which others do, but doesn’t see the Iberian and 13th place respectively, because focuses on the real estate student accom - market as different from the wider mar - TExT CHRIS GRAEME the prospects for a rapid recovery for the modation and multi-family housing seg - ket in Europe.

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prime crisis which started in the United States in 2007 forced a reset on the eco - “WE ARE MAINTAINING OUR ACTIVITIES IN THE nomy, levelling down local economies. PORTUGUESE AND SPANISH MARKETS WHICH WE Miranda Domingos believes that the FIND QUITE ATTRACTIVE AND WE DON’T SEE A CHANGE recovery from this new starting point IN RISK STATUS REGARDING OUR ASSET CLASSES.” enhanced creativity. New policies and programs were put in place, promoting KIRK LINDSTROM, CHIEF INVESTMENT OFFICER business development, driving exports AT ROUND HILL CAPITAL. and fuelling the tourism sector. “Portugal was able to attract foreign investment, and as tourism flourished Lisbon became the “new-kid-on-block” funds are collective investment institu - This fall was mostly down to the winding followed by Porto in Europe," Miranda tions whose sole objective is to invest i - up of four funds that year. Nevertheless, Domingos said. nvestor capital and work from the the amount of property under manage - "The seed sprouted, and between principle of spreading risk. ment increased by 1.5% in this category 2017 to 2019 everyone was reaping the and represents over half of the total dividends from Portugal’s tourism boom, FUNDS IN 2020 national real estate investment fund as - the rise in technology startups spurred by According to Portuguese online fund sets under management. Web Summit which moved from Dublin analysts Funds People, Portugal's real By the end of last year, Interfundos, to Lisbon in 2016 and from overseas estate investment funds market grew in Square Asset Management, and Caixa relocators and property investors taking 2020 in terms of the value of the assets Gestão de Ativos held the largest share of advantage of the Non-Habitual Residents under management, with a growth of real estate funds in the Portuguese mar - tax regime and Portugal’s successful 2.2% since the start of that year. ket — 12.6%, 11.4% and 9.2% respec - Authorisation for Residency through That meant that the value of real tively, with European Union countries billion, while FUNGEPIs fell 1.1% to Investment program (ARI), commonly estate investment funds under manage - continuing to represent virtually all of the €417 million. Again, Interfundos (12.2%), called the Golden Visa." ment by entities that are members of the investment made in real estate assets. Square AM (11.2%) and Caixa Gestão de The real estate asset advisor says that Portuguese Association of Investment In the last quarter of 2020, Portugal’s Ativos (9%) led the market share. Portugal also benefits from some intrinsic Funds, Pension Funds and Asset Mana - securities market regulator CMVM re - factors that influenced the way that Por - “OVERALL, WE EXPECT THAT INVESTORS WILL REMAIN gement (APFIPP) totalled €9.236 billion ported that several special real estate INVESTORS MORE CAUTIONS tugal’s real estate sector performed so by the end of June. investment companies were set up - Imo - Miranda Domingos, Senior Partner of FAIRLY CONFIDENT IN THE MARKET, AS IT HAS PROVEN ITS well: the country’s mild, sunny climate, RESILIENCE, AND WILL CONTINUE TO OFFER INTERESTING That growth in the market was mainly fuste and JNV Real Estate managed by BlackOAK Real Estate Advisors says its excellent private and public health down to “progression at a real estate Atlantic, and the real estate investment “fireside chats” with different investors INVESTMENT OPPORTUNITIES AT AN ACCEPTABLE LEVEL services and welfare system, an available patri mony level” whereas the number of fund FSG Saúde, managed by Fideli - have indicated that despite a more cau - OF RISK.” CARLOS MIRANDA DOMINGOS, BLACKOAK. pool of skilled young professionals who investment vehicles declined from 185 dade. Also in the same quarter, the real tious approach, there is a will to continue speak English and other foreign langua - by the end of 2019 to 178 by June 2020. estate investment fund Imóveis Brisa previous investment plans in Portugal, ges, a relatively low cost of living com - managed by Profile was liquidated. although investors are more risk-sensitive pared to many other EU neighbours, and and more conservative on the timeline a relatively low crime rate. FUNDS IN 2021 for returns. In Portugal, its focus has been on stu - status regarding our asset classes. Round “This attractive environment drove According to statistics compiled by He explains that one of the characte - dent accommodation and urban requali - Hill is a market leader in the European the economy forward and increased the Portugal’s securities market regulator ristics of real estate is its “inelasticity fication. In Lisbon it has developed, in student housing and alternative accom - demand for office spaces, shops, hotels, CMVM, the value of real estate invest - towards market volatility”, meaning that partnership with TPG Real Estate Part - modation segments, and our specific restaurants and cafés and residential de - ment funds (FII) and special real estate professional investors normally have a ners, the €150 million mixed student investments have been aimed at situa - velopment to cater for overseas business investment funds (FEII), and real estate long-term investment focus, driven residences and private apartments pro - tions where there is an imbalance bet - and professional relocators, second home property under management funds by strong real estate market fundamen - ject with commercial units attached ween supply and demand and which buyers and investors in Airbnb apart - (FUNGEPI) stood at 10.7 billion by tals: location, supply and demand and 'Lumino Campo Pequeno' in the smart certainly holds true in Lisbon, Porto in ments, all of which attracted investment € the end of January, down €66.4 million management. upper middle-class Campo Pequeno dis - our areas of interest." which went into rehabilitating and refur - (0.6%) on December. “We believe that despite a higher risk trict of the city. He adds: "We believe that invest - bishing properties rehabilitation of the The amount for January invested in related to economic uncertainty, core Lindstrom stresses that while logis - ments in these markets will continue in city centre areas of Lisbon and Porto," he real estate investment funds fell 0.7% properties will continue to attract long tics is another important investment sec - 2021, 2022 and beyond and are commit - pointed out. to 7.9 billion. FEIIs fell 0.2% to 2.4 term investors," he said. "We also expect tor for Round Hill, it has not yet invested. ted to looking for investment opportuni - A real estate investment fund attracts € € That is not down to any lack of attractive - ties in the Iberian market in general and capital from various, often international ness in the local market, but to Portugal Portugal, specifically." investors, and is placed in portfolios and being "so much smaller" than many other applied in property and managed by spe - "PORTUGAL CONTINUES TO BE ONE OF THE TOP DESTINA @ markets. NEW KID-ON-THE-BLOCK cialists known as fund managers. “We are maintaining our activities in Looking back over the past 10 to 12 In Portugal, the regulatory and super - TIONS FOR TRAVELLING AND TOURISM AND THEREFORE the Portuguese and Spanish markets years, Carlos Miranda Domingos of visory entity which supervises funds is the EXPECTATIONS OF A SMOOTH BUT SOLID RECOVERY ARE which we find quite attractive," says BlackOAK, a Lisbon-based real estate Portuguese Securities and Market Com - STRONG”. PAULO DUARTE SARDINHEIRO, BLACKOAK. Lindstrom. "I don’t see a change in risk asset advisory firm, explains that the sub- mission (CMVM). Real estate investment

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life, but the high-street shopping areas may take some time to recover, as they are more dependent on tourism. THE TOP REAL ESTATE FUND MANAGEMENT CA PATRIMÓNIO CRESCENTE - Fundo CA Património Crescente was authorised by the “This has been one of the most af - COMPANIES IN PORTUGAL CMVM in June 2005, having begun its activity on 15 July that year. Its depositor and seller is Caixa Central de Crédito Agrícola Mútuo and is sold through the bank network of fected classes by the pandemic. Although INTERFUNDOS - A Interfundos – Gestão de Fundos de Investimento Imobiliário, S.A is a Credit Agrícola. The CA fund is managed by Square Asset Management. It holds 5.9% of e-commerce has helped to maintain financial entity that administers, in exclusive representation of its stakeholders, one or more the market. sales, many street retailers won’t survive. real estate investment funds and, according to data from APFIPP, manages 36 funds. We foresee an adjustment on price per NOVIMOVEST - This is an open investment fund managed by Santander Asset Manage - sq.m, as more spaces become available,” SQUARE AM - Square is one of the largest real estate management and consulting groups ment. It comprises pre-existing buildings, planned buildings in a condominium configuration says the BlackOAK senior partner. in Portugal. Operating for over 16 years, it is the only independent management company or not, but registered in the building register as being part of the fund. The destination of Hospitality, say the BlackOAK real managing open-ended real estate investment funds. It has 12% market share and €1.4Bn the buildings is for rental or some other form of exploration, as well as their future resale. estate investment advisors, is living its of assets under management. It specialises in income funds, distressed asset funds and “worst nightmare”. Recovery is expected strategic consultancy. to happen in the second half of the year IMOFOMENTO - Managed by bank BPI, this fund is aimed at investors who want to see their capital applied over the medium-long term and as such are prepared to lock up their following the vaccination program and the CAIXA GESTÃO DE ATIVOS - Caixa Gestão de Ativos, SGOIC, S.A. is a Grupo Caixa Geral capital for a minimum investment period of 5 years. that value-add investors will shift more to this asset class by projecting +21 million burning desire of people to travel after de Depósitos company specialising in the management of real estate investment funds the opportunistic side." m2 of logistic space and infrastructures one year of lockdowns and restrictions. (since 23 December 2019) advising clients on investments and managing institutional and VALORES E INVESTIMENTOS PREDIAIS VIP - The Fundo VIP is one of the oldest between 2021 and 2025.” "Portugal continues to be one of private client portfolios, benefitting from the know-how and experience in asset manage - LOGISTICS PERFOMING WELL Real Estate Investment Funds (FII) in the Portuguese market, having been created in 1987. the top destinations for travelling and ment acquired over 140 years in the financial area as the bank Caixa Geral de Depósitos. Miranda Domingos says that in the OFFICES tourism and therefore expectations of a It is managed by SILVIP. An open fund denominated in euros, it pays out dividends, albeit not guaranteed, to its participants quarterly by automatic bank account credit. It has €332 commercial real estate sector, the logis - BlackOAK says the quality of tenants smooth but solid recovery are strong,” BPI GESTÃO DE ATIVOS - Linked to bank BPI, it was set up in July 1990 and is one of million of properties under management: 304,000m2 above ground and 35,000m2 below tics segment has been performing well, and the limited offer of prime assets will says Duarte Sardinheiro. the largest managers in Portugal and manages the fund Imofomento. although the actual amount in the contribute to maintaining low yields in and 222,550m2 uncovered area. For the second year running Fundo VIP was voted the best open fund in 2020 by Portuguese real estate funds association APFIPP. pipeline may limit its potential. This, he the office segment. RESIDENTIAL SILVIP - A real estate investment fund management company whose primary objectives explains, is down to the strength of the “The offices segment is doing a lot of On the mid-high and luxury residen - are the administration and representation of real estate investment funds, management of FIMES ORIENTE FUNDOS IMOBILIÁRIOS - A closed fund set up in 2004 and run online market as consumers have tended work behind the scenes,” says Paulo tial segments, demand continues to out - real estate assets and real estate market studies and analysis, among others. to purchase from online sites, rather than Duarte Sardinheiro, Principal at Honest strip supply, keeping current price tags by Novo Banco. It was formerly managed by Gesfimo - Espirito Santo Irmãos. commercial retail outlets such as shopping Buildings & Investors Club by Black stable. Many owners of short rental SANTANDER AM - An international asset manager with strong local roots in Europe and IMONEGÓCIOS - The Fundo Imonegócios managed by imoFundos invests in a diversified centres or shops in open-air urban shop - OAK. “Asset Managers are being chal - proper ties are shifting towards the long Latin America. With a presence in 11 countries, it has assets of more than €181Bn working portfolio of assets in the real estate market, mostly in commercial and services, particularly ping districts, because of the Covid-19 lenged to keep occupancy high and lease rental market, which will create for institutional clients, individual clients, and intermediaries such as Santander banks in properties that generate income, not totally excluding construction projects. The fund is pandemic and its attendant consequences tenants happy. Investment funds are con - some limited relief to the lack of supply many geographies. in restrictions, weekend confi nements and cerned about valuations while tenants are in city centre areas, but not enough to aimed at moderate risk-taking clients who aim to invest for a minimum of 1 year. lockdowns enforced by two states of dealing with a new way of working due to accommodate the existing demand in the THE TOP REAL ESTATE FUNDS TO INVEST IN FOR emergency, from March to May 2020 and Covid-19 and rethinking their space private rental sector. Multi-family long 2021 INCLUDE THE FOLLOWING: AF PORTFÓLIO IMOBILIÁRIO - Managed by Interfundos which is part of Millennium January to March 2021. needs, while trying to maintain their cor - term rental assets will attract investors bcp, this real estate investment entity’s goal is to carry out investments, predominantly “We expect consumer buyer beha - porate culture. But we expect resilience with the first units under development to FUNDIMO/FUNDIGER - Managed by the State-owned bank Caixa Geral de Depósitos. nationally and in urban areas, focusing on the acquisition of rented properties that maximise viour to continue this trend," Miranda and strong yields to hold up.” be launched later this year in Portugal. Fundiger invests in a diverse portfolio of properties both in terms of segments and geography the individual apartment units that comprise it. This is a capitalisation investment institution Domingos noted. "This will keep up de - “Overall, we expect that investors will and distributes dividends twice a year. whereby its revenues are reinvested. mand for logistics space, particularly RETAIL AND HOSPITALITY remain fairly confident in the market, as from last-mile logistics operators, which Not surprisingly, retail and hospitality it has proven its resilience, and will con - in turn will push-up rental values. We will be the sectors more affected by the tinue to offer interesting investment therefore forecast that pressure on prices sharp decrease in demand, which will oppor tunities at an acceptable level will drive more investment to this sector put some distressed assets on the market of risk,” says BlackOAK’s Miranda in areas and regions where the required and attract opportunistic investors. Domingos. “Residential is showing mixed demand in square feet is not meeting On Retail segments, Shopping malls perspectives for the future, since we still BIG PROPERTY DEALS IN PORTUGAL 2020 demand. Spain is setting the bar high for will recover with the return of normal see demand for housing and short supply Share of Colombo, Vasco da Gama, CascaiShopping and of quality residences." Norteshopping malls sold for €800 million to Allianz and Elo. Miranda Domingos also pointed out Source: BlackRock 2021 that the luxury market, which has been Lagoas Park - a large office park in Oeiras near Lisbon sold for driven by international demand, is now €421million to Henderson Park Capital Partners YiELdS EvOLuTiOn, frOM PrE-COvid TO POST-COvid being fuelled by Portuguese buyers look - PREOF portfolio €155 million sold to Cerberus Offices: 2019: 4.0% 2020: 4.00% 2021: Stable/slight increase ing for premium properties. On the downside, he believes the end of Golden Freeport Lisboa and Porto fashion outlets €70.7 million sold to APG Highstreet retail: 2019: 4.00% 2020: 4,25% 2021: increase Visa program in Lisbon and Porto will Nova Arcada €45 million sold to MDSR fund have a negative effect on the residential Shopping Malls: 2019: 5.00% 2020: 5.25% 2021: increase Hotel The Lake Spa Resort €41 million sold to HIP (Blackstone) sector. But he also foresees transfer of industrial & Logisitics: 2019: 6.25% 2020: 5.75% 2021: slight decrease capital towards commercial real estate Forum Viseu €40 million sold to Square AM retail Parks: 2019: 6,25 % 2020: 6.50% 2021: slight increasef that is not affected by the new Golden Visa eligibility policy.

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Angola can benefit from Brexit “IF BORIS JOHNSON IS REALLY COMMITTED TO PROMOTING TRADE RELATIONS WITH AFRICA, IT WOULD BE ADVISABLE TO SUPPORT THIS INTENTION WITH PRO@TRADE Brexit has just happened. A question that naturally arises is: to where should INVESTMENT POLICIES. OTHERWISE, THE BRITISH GOVERNMENT WILL WASTE A GREAT British Prime Minister Boris Johnson and his government turn in this phase OPPORTUNITY TO PARTNER WITH THE MOST PROMISING REGION IN THE WORLD.” of cooling relations with the European Union?

TExT CEDESA

In the case of Angola, according to being the main catalyst for Africa's deve - Finally, there is a growing African data from the local Ministry of Telecom - lopment, particularly in terms of trade, diaspora in the United Kingdom, and munications, Information Technologies the United Kingdom has some competi - naturally this is deepening cultural ties. and Media, the country has a network of tive advantages over Asian countries. More than 1.5 million Africans live in his around 7 million internet users and has Firstly, it enjoys the privilege of having majesty's land, and as expected, many close to 15 million mobile phone users, a common time zone. Much of the African send money back to their country of figures that could and should improve, continent has a trading schedule compa - origin. With a country geared towards but that are not to be disregarded. The rable to that of the United Kingdom, thus ingenuity and entrepreneurship, it is of Angolan market is booming and has prio - making cooperation and trade much more paramount importance to encourage and ritized mobile devices. As already prac - spontaneous and uncomplicated. invest in these characteristics of the tised in Nigeria, Africa's largest economy, The second factor is the language African people. the United Kingdom can also exploit itself. The United Kingdom was the If Boris Johnson is really committed A ngola's enormous potential in this field. largest world empire, and this was also to promoting trade relations with Africa, Incidentally, consider for instance reflected in Africa. English is the most it would be advisable to support this companies that are dedicated to digital widely spoken language on the continent, intention with pro-trade investment money transfer such as Azimo, which with around 700 million non-native policies. Otherwise, the British govern - a lready handles billions of dollars in pay - speakers. Obviously, in Angola, English is ment will waste a great opportunity to ments to African recipients of migrant not spoken, but there is a strong capacity partner with the most promising region workers in the United Kingdom. These for linguistic adaptation, with Portuguese in the world. payments are crucial for developing speakers generally finding it easier to economies, especially in this period of speak other languages. www.cedesa.pt í crisis due to the COVID-19 pandemic. These payment methods can stimulate new markets for other financial services and provide people with access to very helpful tools for various types of invest - ments, such as savings accounts, commer - cial loans, pension funds or some thing related to the insurance area . oris Johnson has already “winked” at downs, and over time, they will possibly that "in Britain, we have a lot to learn Yet, it might not be just British com - Bthe new USA President, Joe Biden, return to normal. However, at this point, from the ingenuity, energy and ambition panies that benefit. Take Kenya's M-Pesa and apparently does not hesitate to be a they are rough and do not offer security. of African entrepreneurship, as well as as an example. This company is consi - “spearhead” in transatlantic relations, just Thus, it is obvious the UK needs reli - wealth creation". dered an outstanding model of techno - as he did in the Trump era. But the truth able economic partners outside Europe All UK business sectors can take logical innovation and in issues related to is that the United States has other prio - and the USA during this period. Boris advantage of closer ties with Africa. One mobile payments is far ahead of its Euro - rities and the “special relationship” Johnson knows this, and so it came as of the important sectors could be pean counterparts. Thus, British compa - claimed by the British in relation to the no surprise when he said that the UK fintech (financial technology). It is worth nies could take advantage of the Americans is something of a one-way should be the preferred investment remem bering that half of the world's top additional know-how and of this tech - sense, with little relevance in the design partner on the African continent. Re - 10 growing economies are located in nical advantage. of Washington's foreign policy. Anglo-Eu - cently, at the United Kingdom - Africa Africa and digital technology is growing In addition, even though we are ropean relations have always had ups and Investment Conference, he considered rapidly on the continent. aware that Asia, particularly China, is

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(environment, social responsibility and governance). For these reasons, Am - Cham reorganised its structure, by creat - ing activity groups focused on topics that AmCham have more impact on businesses today: Digital & IT, Sustainability, R&D and Ed - ucation, Health and Tourism. Those values have never been so The American Chamber of r elevant and profound as they are today, amid a global health, economic and s ocial crisis, and will be decisive to over - Commerce in Portugal turns 70 come it, in a spirit of global collaboration — with special relevance for the transat - lantic relationships between Europe and The American Chamber of Commerce in Portugal (AmCham) turns 70 this year, at a the USA. It is our ambition to be part of this process. time when Portuguese exports to the US have hit a record high and Portugal heads the Presidency of the EU Council. The President of AmCham, António Martins da Costa, The celebration of these 70 years is reflects on its important role in bilateral trading relations today based on three core events: • A series of five webinars relating the TExT ANTÓNIO MARTINS DA COSTA António Martins da Costa, President AmCham, US Ambassador George E. Glass, Francisco Pinto Balsemão, President Grupo Impresa, Minister of the Economy, Pedro Siza Vieira transatlantic relationship with the Portu - guese Presidency of the EU, organised together with AmCham Europe commercial and investment relations bet - entrepreneur. But a platform like Am - Chamber's role in representing and de - • The Transatlantic Business Sum - ween the two countries. Cham can offer its members the value of fending the interests of its partners is mit, a high-level event focused on geo- The results of this approach are evi - cooperation networks, where experiences greatly appreciated by our members. strategic discussions and their impact on dent and down essentially to the action can be shared and leveraged. The same can be said about the pro - businesses of companies and entrepreneurs — many I would also like to highlight some of motion of those values that are the core • The event, with a gala dinner, of the of them our associates — who we wish the activities that we are proud to have of the American economy and that we AmCham Tributes to congratulate on this occasion. Some developed in recent years, having recei- believe in: Open-market economies with facts and figures speak for themselves: ved very positive feedback from those attractive frameworks for investment, Our partners are at the heart of what who had the opportunity to participate: where innovation and entrepreneurship we do at AmCham. We are grateful • The US is the world's 5th largest are key success factors of competitive - and honoured for the trust they place destination of Portuguese exports and the • The AmCham Tributes, awarding ness, in a world under accelerated trans - in us. We count on them to celebrate 2nd outside EU (close to €3Bn in 2019). companies and personalities that are formations on digital and ESG themes AmCham's 70th anniversary in 2021. í • American investment in Portugal r elevant to the Portugal-USA business represents 11% of total Foreign Direct r elationships

Investment (FDI) and is consistently • This is America, a family-friendly Jose Araujo, Emerico Gonçalves, Alexandre Fonseca, Soﬁa Tenreiro, Guido Araujo, Jose Carlos Ferreira above €1 billion annually, in recent years event divulging the American Way of Life • Investments in startups in Portugal • Business missions to the USA, are largely financed by US investors (59% o ffering participants an opportunity to in 2019) get in contact with potential partners • Barometer of the American compa - AmCham provides information, helps nies in Portugal, a detailed picture of US define strategies to approach the US investments and trade in Portugal market, builds bridges, and supports and • Access Africa Forum Program, high - presents testimonials from companies lighting the advantages of a partnership his year AmCham turns 70, a date A few years later, our mission evolved that have embarked on this journey, between American and Portuguese com - Tto remember and celebrate, as it has to also promote and support Portuguese motivating others to do the same. And we panies to access the Portuguese-speaking played an important role in the good companies and entrepreneurs looking do this alongside our partners, namely African market relations between Portugal and the USA for business opportunities in the Ame - the US Embassy, the Luso-American over the years. rican market. We then became a two- Development Foundation (FLAD) and Also worth mentioning are our train - It was on 3 July 1951 that, in the way highway. Portugal Global - Trade & Investment ing programs — designed together with presence of the US Ambassador at the Seven decades after our creation, our Agency (AICEP). our partners — that place AmCham as a time, a group of leaders of US companies relevance has increased, due to the rein - This is not an easy path, as the Ame- platform for knowledge sharing, as well based in Portugal met and founded this forcement of the historical and cultural rican market is demanding and highly as the excellent networking opportunities association to strengthen bilateral rela - links and a mutual understanding bet - competitive. The internationalisation of that our events create, connecting tions and support American investment ween Portugal and the US, but also a business is a complex process depend - p eople, organisations and political agents in Portugal. due to the strengthening of economic, ing on the activity of each company or to enhance business development. The

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t was blazoned all over Lisbon, on a nium bcp bank, Altice, Emirates, Rolex, nents broadcasting over 1000 hours of Imassive JCDecaux street advertising Betway, Nespresso, Vanguard Properties, live transmission from the event. In Por - campaign and on ATM screens. After CTT, Sacoor, Heineken, ISDIN and so tugal, the host broadcaster is the inde - being cancelled last year, Portugal’s pre - many others. And it is equally important pendent media group TVI, and it will also mier tennis tournament & social event, for Cascais Municipal Council (CML), be broadcast by Tennis TV to over 220 the Millennium Estoril Open, will be which knows the value of an event like territories around the world. back, from 24 April to 2 May, but under this - televised around the world - in at - “This will guarantee our multinational very different circumstances tracting tourists to the chic seaside resort sponsors a full spectrum of visibility and Joao Stilwell Zilhão, Tournament Di - and keeping the town’s luxury brands sponsorship value for their brands," says rector and managing partner of 3Love, Estoril and Cascais at the forefront of Stilwell Zilhão. "For the Portuguese the company that organises the Millen - people’s minds. brands which are more locally-focused, nium Estoril Open, says he was always “Most of the brand sponsors have it's all about more national activation, lots unsure if the sponsors’ VIP guests, let been with us on this trip from the begin - of digital marketing, social media and alone members of the public, would be ning, including Cascais Council which public engagement with the brand am - able to attend, and if they could, how has provided fantastic support since day bassadors." many would be allowed into the venue one," Stilwell Zilhão explains. "We are Stilwell Zilhão adds that the team had and under what conditions. fortunate to have very loyal sponsors that always had a strategy so that even if the “I spoke with the Secretary of State want to help us get through this COVID- public could not be on site this year, the for Sports, João Paulo Rebelo, at the be - 19 pandemic, and they knew that in sponsors would still get a fantastic return ginning of March. Obviously, the Millen - order for us to keep alive, we needed to on their investment, although the level nium Estoril Open is a very important run the event this year. We can’t just skip of that investment from sponsors was event, but there are also other big events two years in a row." r educed by the organisation. in April and May, including Formula 1 (2 In terms of international visibility, the Despite a reduced presence of spec - May), the Portugal Masters (29 April-2 Millennium Estoril Open has a full tators, Stilwell Zilhão is convinced that it May) and Moto GP (28 March) and lots lineup of TV channels around the world, still makes sense for them to be involved of decisions had to be taken. We are just with over 100 countries on five conti - in the event. He explains that a brand one of many events that needed an ans - wer over rules and regulations concern - ing the attendance of public,” he says. The Tournament Director of the M illennium Estoril Open says that it goes without saying that he wanted the event to go ahead as it normally would, but understandably needed to abide by the health authorities. Luckily, the tennis stars have been r eceiving exemptions to fly, and in other cities where ATP Tour tennis is happen - ing, the organisers have liaised with the local authorities to ensure the players have been tested for COVID-19 and are Millennium Estoril Open able to move within the strict bubbles at the hotel and tennis venue. Sanitation measures will be tough and uncompromising. The players will be it’s a kind of magic! in Estoril two days before the event starts and will be taken to the official hotel, Cascais Miragem, tested in their rooms, High-profile national and international brands need equally high-profile sporting events like and once they test negative, will be able the Millennium Estoril Open to keep their products in the spotlight. But with a reduced to circulate within the hotel and Estoril tennis club compound. number of spectators, or none whatsoever, is TV, radio and social media enough?

TExT CHRIS GRAEME BRANDS SUPPORT The event, which cost in excess of €3.8 million in 2019, is important for the brands such as the title sponsor, Millen -

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like Symington Family Estates (Syming - NOT JUST ABOUT TENNIS "After all, many events at fixed ton’s), which make some of the best And while admitting that the Millen - venues don’t always have that kind of wines and port wines, have continued nium Estoril Open may not be on the magic," he points out. being a sponsor because they want their scale of Wimbledon, Stilwell Zilhão “This really is a year of survival, of brands to be visible on court. Their highlights that the event is one of the some losses for our company, but the brands Graham’s & Dow’s port is sold in largest social and sporting events in bottom line is that this is our comeback. 176 countries around the world. Portugal, great for networking and pub - We are here for the future and we will “It’s obviously relevant for them to lic relations. not give up,” Stilwell Zilhão concludes. have lots of TV hours, and in Portugal the “In Portugal, it is much more than brands will be able to activate lots of just an ATP tennis event, being one of MILLENNIUM ESTORIL OPEN - spots through digital marketing,” Stilwell the most important society, gastronomic, A LITTLE BIT OF HISTORY Zilhão points out, adding that each brand PR and networking events, which is why The Millennium Estoril Open which will try and extract the maximum they we have had so much success both on takes place annually at the Estoril Tennis can without having spectators physically the court and off court in the hospitality Club sports complex, was reborn in 2015 at the event. & corporate hospitality areas.” in the heart of Estoril to replace and He gives the example of Wimbledon Every year, he says, the boxes are sold maintain alive the historic ATP event sponsor Sipsmith, which distils London out, and not all of them are necessarily which happened over 25 years in Estadio dry gin. The company is already running keen tennis fans, but just love the whole Nacional and which ended in 2014 (at a slick campaign this year as the first of - atmosphere and conviviality of the event. the time called Portugal Open) ficial gin partner of the British tennis In that way, it is a little bit like Ascot The tournament was created by a event, running recipes and engaging with without the horses, where people go to new company called 3Love formed by the public and partners on social media meet and greet, see and be seen. U.COM (Dirk Glittenberg and Joao platforms and TV, even though the event And as for the future, Stilwell Zilhão Zilhão), Van Veggel (former Dutch tennis will probably not run with spectators says it would be wonderful to have their player Benno van Veggel & Armindo physically present. own permanent facility. Nevertheless, he Mirante) & Polaris (owned by Portuguese “Perhaps 2021 may not be a great has had the opportunity to set up a tem - football agent Jorge Mendes) year for them in terms of on-site sales, porary village with a lovely restaurant “It was a huge race against the clock, but they get huge visibility and it is a road overlooking the centre court at the Clube because we decided to take a substantial towards returning to normality,” he says. de Tenis do Estoril. risk to keep alive the ATP Tour in Por -

tugal. It was a huge gamble for the those that do have a competitive advan - 3Love partners who were involved in the tage over those who don’t." “IN PORTUGAL, IT IS MUCH project because there was so much Five years on, 2020 threw up the MORE THAN JUST AN ATP doubt as to our ability to come up with COVID-19 challenge, which for perfectly TENNIS EVENT, BEING ONE such a huge financing in such a short understandable reasons had to be can - OF THE MOST IMPORTANT space of time,” says Stilwell Zilhão, celled when the organisers were just 38 r ecalling the run-up to the first Millen - days away from the event. In fact, ATP SOCIETY, GASTRONOMIC, nium Estoril Open. cancelled many months of events and the PR AND NETWORKING Then there was the great unknown of tour only recommenced in August in New EVENTS, WHICH IS WHY WE putting on such a large ATP event at a York. “Our small, but dedicated 3Love HAVE HAD SO MUCH new venue, the Estoril Tennis Club. team, that works throughout the year to There were doubts as to how it would organise this event, saw 10 months of SUCCESS BOTH ON THE work, how the venue and Estoril could hard work ruined because of the virus,” COURT AND OFF COURT deal with the flow of such sheer numbers says Stilwell Zilhão recalling the lost year. IN THE HOSPITALITY & of people and traffic, where cars would “We were just a short time away, and CORPORATE HOSPITALITY park and whether there was sufficient so much of the temporary infrastructure parking, but also how everything would had already been built, including much of AREAS.” work from a corporate sponsors point of the stage and the backdrops, the seating view and so many other doubts. areas and public areas for nearly 4000 peo - “The support and sponsorship we get ple, the Slice Lounge and Slice Restaurant from the two title/main sponsors Millen - which seats over 800,” he adds. nium bcp and Cascais has been ab - “Having said that, although 10 solutely fundamental over the years for months of hard work went to the wall last the success of the project, which has only year, we are simply delighted that the increased in visibility and prestige, both event will take place this year, albeit nationally and internationally, over the under strict sanitary regulations and with years," Stilwell Zilhão said. no live spectators,” concludes Stilwell “Companies need to communicate Zilhão, partner and tournament director their brands even in tough times and of the Millennium Estoril Open. í

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e state markets. There’s a lot to do both You lived and worked through the critical for decision making and for the Prime Yield in the residential and commercial seg - Great Recession in 2008-2015. How positive development of companies. ments, and the companies that have did you survive and what is different The end of moratoria will be a chal - the ability to remain active in these mar - about the current crisis in the way it lenge for many companies, but, in gene - kets, even if with a more cautious ap - is affecting, both positively and ral, the present time is one of increased A prime player in proach for the time being, will be the nega tively, the consultancy segment challenges, with a pandemic that is dis - ones leading the way when these eco- and the commercial and residential rupting economic and business activity nomies reset. real estate market? transversally and will go down in history. The days we live in are really uncer - Many companies will have to rethink property consultancy What is Prime Yield’s main ambition? tain, and not even interest rates are rele - their business plans and/or need to re- Our main goal is to become the refe- vant to the current market at present evaluate their assets, including real estate rence in valuation & advisory services in because they have reached their lowest assets and other ones, in order to face the Nelson Rêgo is undoubtedly one of the giants in the Portuguese real estate consultancy Southern Europe and Latin America. levels ever. You can’t even bank on mana - future better prepared. landscape. Born into a property development family, he started his own consultancy gement strategies based on an interna - By providing our assurance services in 1999 and went on to found Prime Yield in 2005. Since its partnership with What makes you different from tionalisation and diversification diptych in we want to actively support companies in the larger international real estate the short and medium-term because we improving the quality and timeliness of the Spanish Gloval, it is now one of the big players on the Iberian peninsula consultants? are all faced with a global pandemic that the information that supports their busi - INTERVIEw CHRIS GRAEME I would say we are a boutique concept affects everyone and everywhere at the ness and consolidate their relationship that creates a customised experience for same time. with their stakeholders, considering the our clients and have a very personal and This is why this paralysis in economic nuances of this time of unprecedented analyse operations using the same crite - close contact between our teams and all activity which has lasted a whole year to challenges. ria, regardless of geography, but with full of the company stakeholders. March will unequivocally have a negative Our expertise allows us to advise and recognition of the cultural aspects and Besides, we have an approach to our impact on the real estate market. In a help companies. Assurance services will specificities of each country. This was clients that focuses on providing intelli - more detailed and focused analysis of help businesses mitigate risk, preserve key for our internationalisation project gence Services for those who want to each of the segments, it is easy to draw liqui dity, renegotiate and restructure fi - strategy. achieve excellence, building trust bet - some conclusions, but we believe that nancing, preserve assets and anticipate ween the company and the client, based the different segments of the real estate opportunities. We have a comprehensive What differences and similarities on independence and competence. market will recover more quickly than and accurate approach that will enable have you noticed working in these the previous crisis that began in 2008. companies to make strategic decisions in different countries to Portugal? Prime Yield/Gloval has built a strong Against this backdrop, information several business areas, supporting their Looking into Portugal and the other reputation on the back of meticu - will be the key for companies that want needs through a multidisciplinary team Portuguese-speaking Countries, I would lously researched market studies. to keep up on top of their game and con - of experts. say that the only common factor is the Was this part of your initial strategy? sultancy can have a key role in providing language. The real estate markets in the This is a key strategy for our company intelligence. Prime Yield is part of Gloval which African Countries, and even in Brazil, are and an important point of differentiation. As for the markets, generally Portugal is a leader in integrated valuation, totally different from those in European Since the very beginning, we have been is now a much solid and mature market. engineering, consultancy and real countries such as Portugal and Spain. proud to make an active contribution Its real estate market is very internatio - estate consultancy and analysis. Has The major challenge in those countries is t owards a more transparent market. So, nalised and this has been very important the partnership been successful? the difficulty for the populations in these we have always invested strongly in for the market’s resilience. We have been part of Gloval since countries getting access to the residential r esearch, providing to all the parties free December 2018 and the outcome has market. Also, mortgage financial systems information about prices, values, occupa - What are some of the big-ticket been very positive. It enabled us to Essential Business: When and why Group. Today we have over 300 profes - and interest rates are a challenge. The tion, trends and outlooks. deals Prime Yield was involved in, in explore new markets in Europe such as did you start Prime Yield? sionals working in seven countries: Por - level of maturity, professionalisation and This free access is very important for 2020? Spain and Greece, while our partner Nelson Rêgo: We were established tugal, Spain, Brazil, Greece, Cape Verde, the way those markets work are com - us, as it is our way of contributing to - We had been involved in the most im - Gloval entered the Portuguese-Speaking in 2005. Our focus is on consultancy and Angola and Mozambique. pletely different from Portugal and Spain. wards a better market. Most of our team portant hotel transaction of the year Countries where we operate. asset valuation services for companies Our approach was different from our Between Portugal and Spain, I would say has worked with us since 2005, and this (Real Hotels Group) and in the valuation and other institutional entities, aiming to competitors precisely because it was there’s a difference mainly in the dimen - long-term commitment is one of the rea - and advisory of one of the most important How did you start out in life? When provide the best tools to support our based on a development matrix that fo - sion of the market. sons why our studies have been so suc - resorts (Quinta da Ombria). did you begin working in the real clients’ decision making. We wanted to cused on the Portuguese-speaking coun - cessful. All revenues from our market estate sector and was it something create value-added services to make the tries since we have this shared language Angola has had a rough time over studies research department come from Prime Yield has launched a new you had always wanted to do? decision process of all stakeholders in bond. However, we approach every single the past few years. Is now the right the advisory side of the business. service to help in company restruc - I was born into a real estate develop - real estate easier. market in a totally independent way, time for construction companies turing. Is that because you can see a ment family. From the very start, I was while at the same time using a matrix of and real estate investors to invest in What makes a good real estate con - growth in this area after the morato - familiar with the construction sector. How has the company expanded common shared standards based on the this and other African markets like sultant in your mind? What are the ria end in September? I graduated with a degree in property from a relatively small Lisbon-based certifications obtained in each market Mozambique and Cape Verde? essential qualities? Up-to-date and accurate information management and development and after real estate consultancy to a major and on a global level by the Royal Insti - Despite being severely hit by eco - Someone that is very well informed is an essential tool for successful compa - that, I start teaching in a university and player on the Iberian peninsula? tute of Chartered Surveyors (RICS). nomic adversity, and also having social but always wanting to learn more, proac - nies. This is even more important in set up my first valuation and advisory We have grown considerably since The company's vision through this and political instability, these are coun - tive, professional and always paying rigo - times of uncertainty. Putting information company in 1999. Since then, I have 2018 when we became part of the Gloval business model is to enable its clients to tries with huge potential for the real rous attention to accuracy and details. in context is, at such moments, especially never looked back! í

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authorities' ability to achieve this amount with diverse entities, with the aim of in both cases, we are at a very advanced Why Portugal’s governments of investment without massive involve - explaining the importance of Portugal phase on the other projects that make up ment from the private sector. But for pri - having stable and predictable laws. One of these plots. This year, we also foresee vate investment to be interested a number the recommendations was that in the considerable progress on both projects. scare off investors of necessary conditions need to be met. event of alterations, these would be Negotiations with international hotel 1. Plots of land have to be set at suitable announced with some prior notice so groups are already at a very advanced prices; agents and players in the market could stage. Portugal’s successive failures to efficiently fund the state has led it to place the burden of 2. Planning permission must take less adapt or conclude their transactions. For - Is the current Government’s policy on taxation on convenient ‘cash cows’ like the real estate sector. But José Cardoso Botelho, than 12 months: tunately, this occurred with the setting of 3. VAT should be set at 6% (or in the very a transition period and date limit. incentives right for the sector? CEO of Vanguard Properties argues the policy just scares investors away least tax deductible in the case of long- We continue to believe that it doesn’t For many years, we’ve been the target INTERVIEw CHRIS GRAEME term rentals), exemption on municipal make sense to remove the metropolitan when the government needs to increase property transfer tax (IMT) and the regions or Lisbon and Porto and various revenues. It is, without exaggerating, one S upplementary Municipal Property Tax areas of the Algarve from the Golden Visa of the activity sectors which is most Essential Business: 2017-2019 were was the best ever. In other words, were it unpredictable when it comes to granting (AIMI); Reductions in IMI - Portuguese programme because this, contrary to what highly penalised in terms of tax (VAT, bonanza years in real estate develop - not for the pandemic, we would have planning permission, and this is extre- property tax for at least part of the term some people would have us believe, did IMI, AUMI, Selo (Stamp Duty), as well ment and investment for Portugal, but achieved a new absolute record in sales mely damaging for investment. Legal under rent; not cause a general increase in property as all kinds of local authority taxes such investors are now turning to safe havens instability adds to the problem because 4. Willingness of the national banks to prices, while on the other hand, there as TRIU (Urban Land and Building Tax), in 2020 ( €2.7Bn for 2020). For Vanguard in Europe like London, Paris and Properties it was a year of growth and it scares off stable investors with a long- f inance operations through long-term is still a huge number of properties in Public Way Occupation and Advertising Berlin. What are the prospects for consolidation. term vision and encourages so-called c ontracts at a fixed rate; need of refurbishment and renovation. Hoarding Licences, etc. Totting it all up, 2021–2023 for the Portuguese real es - There was a downturn in demand in ‘vulture’ investors. 5. Legislative stability, particularly in the We think it would be more prudent to in - and comparing these with Spain, in the tate investment market in your opinion? Lisbon, which was partly its own fault, In terms of external factors, we must not tax area, but also in terms of the rental crease the minimum investment amount realm of main home residential, and tak - laws. and qualify the offer by, for example, de - José Cardoso Botelho: The prospects but also due to other extraneous factors. forget that Lisbon is a small city on a ing only IMT and VAT into consideration, Unfortunately, over the past 20 years, manding that only assets with an energy are positive, but before saying why, it is It is a fact that Lisbon doesn’t come off global and even European scale, and we pay 30% more. If to this scenario we a verage Portuguese purchasing power has certificate of B or above be eligible. But important to mention that Q1 of 2020 well with its image of being slow and many international investors find it add the lack of banks and their incapacity difficult to find interesting projects on a not grown much compared to all the other then I believe that our prime minister to lend long term credit to make residen - scale large enough to be financially EU countries, with the exception of might be aware of that, and could plea- tial projects for rental viable, the very viable. Quite recently, I read an article Greece. On the other hand, we have a santly surprise us. least we can say is that we are faced with that mentioned that in 2020 the average very stiff tax regime, particularly income a highly complex situation. project in Portugal involved just a few tax, which affects the investment capacity You have invested over €1Bn in Portu - apartments. Therefore, it is not surpris - of middle class investment. We also have gal’s luxury residential market, with What has been the impact of remote ing that big investors should focus their fewer civil construction companies and Comporta being a cornerstone develop - working and do you think that working attentions on big cities in more deve- skilled construction site workers are in ment. How do you view the progress of from the office will be a thing of loped markets, even if these cities too high demand. If they’re not well paid, they the project so far? the past? go overseas. You can’t cut construction sometimes suffer from poor policy deci - Vanguard Properties is recognised for its To better understand the impact, Van - costs and without being able to intervene sions, as was the case with Paris and ability to develop multiple projects at the guard Properties recently sponsored “Lar, by increasing middle class salaries, the now Berlin. same time and, always in one phase. As Doce Escritório” (Home, Sweet Office), only thing left to be done is reduce the Nevertheless, there is an aspect which such, this is only possible because we the first study undertaken in Portugal on cost of borrowing, increase borrowing needs to be highlighted: Thankfully in have a high financial investment capacity, this matter. The report showed that most m aturity dates and Loan-to-Value ratios Portugal and particularly in Lisbon, there long-term vision, and a management people like working in a hybrid format, while reducing taxes which must exceed was and is investment, and there are also structure that includes 40 highly quali - and at the same time want to have houses 40% of the cost of a house. buyers of finished product. From this fied professionals, and most of them with with more light, verandas, better and point of view, we are not and hope never vast experience. On the other hand, the larger common spaces (gardens, etc.) and to be a market like Dubai where com - The Government has postponed the enormous success that we have had in be close to where they work. In the case pleted and half-built towers without resi - deadline for the Golden Visa pro - our projects in development and the fact of Vanguard Properties, our projects have dents abound! gramme by one year. If you had advised that we have a direct sales structure been designed with these characteristics the government - and I am sure you did which is increasingly better and more in mind and always in strategic locations. The Government has announced - what would be the ideal situation or efficient, helps. At Comporta, (Dunes) I don’t think we’ve seen the last of offices, €1.5Bn for investment in housing to compromise? we’ve contracted all of the infrastructure, but I think that in the future many com - rent. Do you think middle class housing Vanguard Properties is a member of the the maintenance building and the golf panies will have a hybrid system that will development in Portugal can ever be Portuguese Association of Real Estate course, and it is expected to be com - enable them to reduce space require - profitable? I nvestors and Developers (APPII) and, pleted in June 2021. At Torre we also ments, while at the same time improve This announcement is important, how - within this context, we support the asso - have contracted all of the infrastructure work satisfaction and quality of life for its ever, in my view I have doubts about the ciation in negotiations and interactions in one phase, as well as the golf club and, human resources. í

www.essential-business.pt 40 www.essential-business.pt 41 Essential Development Making a grand entrance

Marriott’s W Residences Algarve is the perfect example of branded residences. The 83 properties are all kitted out with the W signature flair, resulting in a high-end design reference for the Algarve coast

TExT CHRIS GRAEME

Residences Algarve (WR) are sit - branded residence resort which, when early summer of 2019, and it has since Wting pretty on the central Algarve opened, was described by Forbes to become the fastest-selling branded deve - coast offering simultaneous seaside rela - be one of the most exciting openings lopment in Europe. xation and high-energy sophistication. worldwide. Kerstin Buechner, Director of QP Located by some of the region’s most The development has 83 W branded Savills, says that W Algarve is just being iconic beaches, like Evaristo, W Algarve Residences; one, two, three and four- completed and the whole resort is due to is the most spectacular example of a bedroom, which were launched in the open this summer.

www.essential-business.pt 43 Essential Development Essential Development

“WE EXPECT TO SEE LUXURY BRANDS BOTH IN THE HOTEL AND NON@HOTEL SECTORS ENTERING THE PORTUGUESE MARKET, DRIVEN BY THE POSITIVE ECONOMICS OF THE BRANDED RESIDENTIAL MODEL”. RYAN ITANI, HEAD OF GLOBAL RESIDENTIAL DEVELOPMENT CONSULTANCY, SAVILLS.

Kerstin Buechner, Owners, Directors and Sisters, QP Savills Cajetan Araújo, the General Manager, W Algarve Ryan Itani, Head of Global Residential Development Consultancy, Savills

“We are exceptionally excited," she AN INTERNATIONAL PROFILE lopment as a going concern a few years minds with exercise, and good and the ingredients in our dishes are fresh, believes that Portugal stands out at the said, stressing that despite the COVID- Buechner says that WR has been down the line. healthy food, so we have the energy to and where possible, organically grown," moment as “relatively and undeservedly 19 pandemic, the resort was always due getting enquiries from across the globe. “Except for W Residences, Nozul live life to the fullest," explains Cajetan Araújo explains. underrated” in terms of open and opera - to open in 2021. The largest percentage of buyers is from wants to own this property and has Araújo, the General Manager at the W “We will, for instance, grow herbs and ting branded residential projects. “W Residences is one of the fastest- the UK, but on the whole “they are a very no interest in selling it," Rui Costa Algarve. "We express it with this catchy vegetables in a garden on the grounds of He believes, however, that this is set selling branded residences projects in international bunch of well-travelled said. "We believe that this will be a game- phrase: Detox, Retox, Repeat." the hotel," he adds. to change with six projects that already Europe with 75% now sold. Even now, people, mainly from Europe.” changer and an icon of the Algarve, and He goes on to say that W teams are Araújo also noted that they will have exist in Portugal, being joined by a further during these difficult times, there is a The QP Savills director says that we are very proud to see it coming to life luxury rebels with an approach to service the new Davines bath amenities in all six over the next 5 years. lot of interest and a huge amount of everyone has been excited to see that the and reach its full potential. When you to provide the guests with the best luxury their rooms, and in their 'Away' Spa. “We are aware of a number of pro - enquiries. In one week in February we Algarve now has a W. have the best you don’t sell it, you hold experience in the market, but with a These are from a CO2 neutral company jects, in Lisbon and the Algarve in parti- had over 100,” she says. “It’s such a cool and happening on to it, and that is definitely our view of more genuine approach. that supports a reforestation program to cular, that are in the pipeline, although And despite the pandemic and its ter - brand which will add some excitement this Resort." “We give our guests that luxury white- compensate the carbon dioxide emissions contracts have not been signed, that will rible consequences on the Algarve tourism and glamour and of course, prestige glove service experience, but we remove caused during its packaging production. further bolster this growth," Itani said. industry in 2020, Rui Costa, Director of to the area. W has definitely helped DETOX, DETOX, REPEAT! the gloves," he points out. Also, all their toiletries are sulphate and “We expect to see luxury brands Finance of Nozul Algarve SA, the devel - reinforce the Algarve’s position globally," W was the first luxury lifestyle brand W’s approach to sustainability is paraben-free. both in the hotel and non-hotel sectors oper of the W Algarve, says: “We’ve been she said. in the world when it was created in New linked to how it roots the hotel in the For the time being, W Algarve and (fashion, technology, design, sports and hiring the Hotel and Residences team, “They are of all ages and what is great York in 1998 and has remained a refe - local culture. W hotels mix the modern W Residences Algarve are the only exam - celebrity sectors) entering the Portu- and we are actively contributing to the to see, is that many of them are new to rence in the sector ever since. with elements of local culture and keep ple of the W brand in Portugal, although guese market, driven by the positive local economy and reducing unemploy - the Algarve and have come because they It is particularly visible through the the same approach when it comes Nozul Algarve says it prides itself on economics of the branded residential ment rates in Portugal.” are W fans and love what they see hap - lens of the brand’s passion points: to sustainability. being the first developer to bring the model and the potential to cater for both He adds: “Both the owner and project pening here,” she added. Fashion, Music, Design and Fuel. “We believe that sourcing local pro - brand to the country. lifestyle-driven and investment-driven teams were reinforced during 2020 and the Sometimes the owners of branded “When we define ‘Fuel’, we think ducts is a priority when it comes to Ryan Itani, Head of Global Residen - purchasers from the domestic and inter - operations team began hiring last year too.” residences sell on all of part of a deve - about taking care of our bodies and reducing the carbon footprint, so all of tial Development Consultancy at Savills, national markets.” í

www.essential-business.pt 44 www.essential-business.pt 45 Essential Property Essential Property Portuguese residential tourism resorts Why interest remains strong

The coronavirus pandemic initially rattled members of the Portuguese Association of Resorts (APR) as they feared lockdown, travel restrictions and a continuation of restrictions this year would scare off investors. Yet interest has remained buoyant, says its managing director Pedro Fontainhas be no less attentive and sensitive to the such as touristic apartments, remain eli - economy, such as those in tourism and TExT CHRIS GRAEME arguments for living in a resort, according gible regardless of location,” he highlights. tourism real estate, might have been to the APR managing director who adds unable to continue and contribute to that overseas investors from 28 countries COVID: A LASTING IMPACT? the economy. y the second quarter of 2020, as air Yet, despite 2020 having been an Portuguese families looking for alterna - accounted for 66% of leads collected And will COVID-19 have a lasting But more, he says, is needed, despite Btravel dried up and Portugal adverse year, it ended up being less tives to their lifestyle." from September to December last year. effect, either positive or negative, on the the country’s high indebtedness. emerged from a State of Emergency in disastrous than the APR had expected. The APR managing director explains The United Kingdom and Ireland repre - concept or design or adaptation of “Credit guarantee measures are beco - which it had been since mid-March, the “The crisis made the quality of that the ‘Clean & Safe’ initiative from the sented 22% of international inquiries. residential tourism developments and ming anachronistic as companies’ capacity Portuguese Association of Resorts (APR) national tourism real estate even more Portuguese tourist board, Turismo de projects in the future? to take on more debt runs out. The empha - began to worry. relevant and evident," says Pedro Portugal and the pandemic’s then BREXIT EFFECT Fontainhas says that resorts in Portu - sis should be more on the continuity of The association, which represents Fontainhas. "For years, the offer of a safe, favourable numbers helped Portugal to Fontainhas explains that from the gal will continue to be at the forefront of efforts to preserve jobs, capitalise compa - some of the most prestigious luxury healthy lifestyle, close to nature, in become a safe refuge in the eyes of the b eginning resort managers and promoters what is best done worldwide in archi - nies, moratoriums and tax exemptions. resorts in Portugal such as the West houses designed and built with the most international press. had suspected that Brexit would trigger tecture and engineering. And, of course, support for massive com - Cliffs Resort, Ombria Resort, Pestana demanding criteria of energy efficiency, Fontainhas says that the resort entre - many people in the UK to reassess where “The demands brought on by the pan - munication campaigns with the interna - Gramacho Residences and Vilamoura ergonomics, comfort and interior spaces, preneurs, developers and promoters de - they want to live and what they want demic coincide with what life at a resort tional markets where our customers are." World in the Algarve and Belas Clube do has contributed to making Portugal the served considerable praise in the face of from their lifestyle. already implies: more expansive areas, And while the traditional overseas Campo near Lisbon, was worried that the best destination for residential tourism an adverse economic situation that they “With the impact of Covid, life in balconies and gardens, sparsely populated markets for Portugal’s residential resorts year would end in a tragedy in terms of in Europe. It continued to appeal to never could have possibly anticipated at Portugal has even more appeal to many areas, proximity to health, education and such as the UK, Ireland, France and sales of residential tourist real estate. foreign customers and stimulated many the start of 2020. families and has led to a surge in interest leisure services, energy efficiency, secu - Germany will continue to attract the “Faced with the prospect of a lost from those looking for something rity, and investment protection.” lion’s share of investors, the APR’s mem - year, they struggled to keep companies more than they currently have," he says. They are also fitted with the latest bers have investors from 28 countries. open, and workforces and enterprises "Moving to Portugal may make economic telecommunications technology and The association is targeting markets such in a state of complete readiness," he sense too. The Non-Habitual Residents’ high-speed internet which are standard as Switzerland, South Africa, Brazil, explains. "They reinforced the use of regime offers material tax incentives in every home. Canada, US and Sweden. communication technologies and virtual to anyone moving their fiscal residence And while the situation is still diffi - visits to homes and resorts. They deve- to Portugal.” cult in Portugal, the APR managing STRONGER THAN BEFORE loped digital campaigns, independently Fontainhas also points out that UK director is in no doubt that Portugal will Despite a bleak national economic and articulated with APR, to communi - citizens could now consider the Golden recover from the current situation. landscape now, Fontainhas is confident cate Portugal, our regions, and the offer Visa program that provides a residence “Vaccination in Portugal and other that the Portuguese residential resorts of housing in tourist developments." permit in Portugal, and access to the countries and adopting long-term mea - sector is in a much stronger position than Schengen area, for investors in different sures to prevent new variants and new it was 10 years ago when the last eco - ROBUST INTEREST areas such as real estate. epidemics will increase people’s and nomic crisis hit during the Great Reces - What has proved to be a relief, but in “It is important to note that the Por - governments’ confidence levels. The sion and Sovereign Debt Crisis. some ways quite logical from the per - tuguese Government has just enacted question is when, or how fast, such “Without a doubt, the sector is finan - spective of a growing need noticed by the changes to the golden visa program that confidence will grow,” says Fontainhas. cially stronger than ten years ago. Com - residential tourism and overseas reloca - will come into force on 1 January 2022. However, he insists the Government panies are capitalised, and projects are in tion market in Portugal for houses with As of that date, only investments in hous - must support companies so that they can healthy demand and are sustainable. more space away from large urban cen - ing real estate located in defined loca - remain ready for the recovery. Fontainhas That’s what has enabled them to resist tres, was that the pandemic further rein - tions, all outside the urban centres of gives the example of measures like the this crisis and allows them to be ready forced international buyers’ interest, Lisbon and Porto, will qualify. Invest - simplified layoff and says that without it, for any recovery that comes,” Fontainhas while the national audience is proving to ments in real estate for other purposes, critical companies for the recovery of the concludes. í

www.essential-business.pt 46 www.essential-business.pt 47 Essential Weddings Essential Weddings

ortugal has, in recent years, mar - go ahead in the presence of some guests years, numbers which until the pandemic Pketed itself not only as a popular and family members. had been increasing, 25,000 or more have honeymoon destination, but also one in Yet, since October, the many sub-seg - been cancelled or postponed,” Brito adds. which to have that dream wedding. ments that make up the business are at a The future doesn't look too bright, Just over two hours flying time from total standstill and the prospects for the either. Asked if he thought there was still most European destinations, the warm, segment making it to the altar in the se - time this year to hold the 25,000 or so sunny climate, sun-drenched beaches, cond quarter of this year is hardly a bou - weddings that didn’t take place in 2020, stylish boutique hotels, stunning coastal quet of roses. Many weddings booked for Brito said: “There is still time, yes. It’s just resorts and dramatic and varied inland Easter are now cancelled with Portugal’s that we don’t know from when.” scenery and value-for-money stays make second State of Emergency, and large Brito explains that with this high level Portugal the perfect place to get hitched. festive gatherings have also been can - of uncertainty, panic has set in for the Yet many companies that plan this celled again, probably until September. weddings sector. He urges couples plan - special day, which attracts couples from “We know that the number of wed - ning to tie the knot not to cancel, but all over Europe, are facing trouble as peo - dings has decreased over the past 40 rather to “wait a little longer” - perhaps ple either cancelled their weddings in or 50 years overall, but 2020 was the two or three months, until the pandemic 2020 or plan to postpone them until the worst year ever, with more than 80% of restrictions are eased. But he admits it’s pandemic is over. weddings either cancelled or postponed,” hard to pass on that message. The first lockdown hit the sector hard, says António Brito, CEO of Exponoivos, “We’ve already begun to see some resulting in most overseas wedding events an annual weddings industry trade fair cancellations from April," Brito points in Portugal postponed or rebooked. But in Portugal. out. "The first quarter of the year is nor - the lifting of some restrictions in the “Of 35,000 weddings that had been mally weak in terms of weddings, but s ummer did allow a few local weddings to organised annually over the past few from spring they build up until Septem -

António Brito Teresa Perdigão

Portugal’s wedding segment in tatters

The coronavirus pandemic, which has prompted social distancing rules, cancelled flights, and other restrictions, has left Portugal’s wedding sector in tatters. There are growing fears many companies may not survive

TExT CHRIS GRAEME PHOTOS SOMETHING BORROWED

www.essential-business.pt 48 www.essential-business.pt 49 Essential Weddings Essential Weddings

ment’s layoff scheme. But Perdigão admits For example, many weddings in Por - “We want to be part of the solution the situation will have been more compli - tugal take place on stately home estates and not contribute toward the problem, cated for the myriad suppliers who work or “quintas” and have had to invest a lot which is why we drew up a Best Practices with wedding event companies like hers. of cash to meet Portuguese health regu - Manual which we shared with the Rita Soares-Alves of Wedwings by lations. These wedding venues are now govern ment. This is a document in which Rita Soares-Alves, who usually organises empty, with the companies that run them we stress the wedding operators’ commit - around 20 weddings per year, had to unable to make a return on that invest - ment to carry out their businesses within e ffectively cancel 2020 and 2021, and ment. The same goes for boutique hotels all the government's safety rules and only really sees recovery for 2022. in picturesque areas which have been hit includes a pledge to test all the people at “As a consultancy employing a small twice, both by a lack of tourists and a wedding and reception in advance. In team which are on layoff, we have no events like weddings. Another key factor other words creating a safety bubble,” fixed costs and we aim for the top end of is that since October, events could only says the Exponoivos CEO. the market as a destination wedding com - have five people in attendance. Brito says that the sector knows the pany providing tailor-made weddings,” At the end of the day, António Brito situation may not change in the coming she says. says weddings are all about sharing expe - months, but emphasises that the eco- With their clients being mainly from riences with friends and family, but adds nomy needs to reopen in a safe way, with the UK and Ireland, Soares-Alves tells that the sector needs to open up again for all the weeding organisers and suppliers E ssential Business that many of her both the economic health of the sector willing to adopt and implement all the prospective and booked couples are, in and Portugal as a destination, not just for health measures set out by the govern - fact, Portuguese citizens who left Portugal social reasons. ment and set down in the manual. í to work overseas in Europe and later got engaged to local non-Portuguese fiancés and are now looking to marry in Portugal, or second or even third generation Por - tuguese who emigrated to Canada and “SEVERAL BUSINESSES HAVE HAD TO CLOSE THEIR want to get married in the country where DOORS AND MANY MORE WILL DO SO.” they have their ancestral roots. “I basically cancelled 2020 and 2021 ANTÓNIO BRITO, CEO EXPONOIVOS. because I realised the situation regarding the confinements, vaccines, flights and just the whole logistics with COVID-19 would be too difficult for this type of w edding,” Soares-Alves admits. Usually, church weddings in Portugal take place on a Saturday, with the Spring and Summer months being most popular, but “brides and grooms could choose other days” and from a logistics and ber. This year we’re already seeing some “Although the year was a disaster, we pandemic and the lifting of government o rganisational point of view, “that is reluctance from engaged couples fearing were lucky that we only suffered one restrictions. Some couples are hoping to p ossible” she points out. that their wedding won’t go ahead, so outright cancellation and that was tie the knot in Portugal in June or July, For António Brito, the biggest chal - they’re cancelling them." because it was a couple from the US. but have not yet made a final and defi - lenge facing the industry is whether com - Brito believes things are going to get With the situation still unclear due to nite decision. panies can hold out for another three, four worse for the segment until they get better. travel restrictions this year, it just didn’t Organising around 20 weddings per or five months. He doesn’t hide the fact Teresa Perdigão, owner and founder make sense for them to postpone twice,” year, and with an annual turnover of that “several businesses have had to close of Cascais-based wedding events com - Perdigão tells Essential Business. €120,000 or €6,000 per wedding, the their doors” and “many more will do so”. pany Something Borrowed, 80% of whose Founded in 2009, Perdigão says that wedding planner says that they’ve been in The weddings segment is very frag - clients come from overseas, with the lion’s fortunately 99% of all the weddings that a reasonable financial position to tide mented, with around 45 sub-segments share from the United States, United had been scheduled for 2020 have just Something Borrowed over. Her small and suffering from very specific difficulties. Kingdom and Ireland, saw all of her been postponed for either later this year, close-knit team of three have been kept on, But there is a common denominator: weddings for 2020 postponed. depending on the evolution of the and one staff member is on the Govern - They can’t work and sell their services.

www.essential-business.pt 50 www.essential-business.pt 51 Essential Credit Essential Credit

industries and individuals pull out of a of expenditure for economic growth," it is not clear if there would be any posi - r ecession, while others stagnate," she adds. she said. tive benefits from debt cancellation. Portugal’s credit outlook This idea was mooted by some AGEING AND DEBT LEVELS EU RECOVERY FUNDS French economists and commentators In the long term, the Moody’s analyst Portugal is one of the larger recipients who suggested writing off public debt says that Portugal, like many other Euro - of the EU Recovery and Resilience funds that has been transferred onto central not as bleak as it seems pean countries such as Germany, face a in nominal terms, expecting to net 13.2 banks’ balance sheets as a result of quan - € demographic problem, with the credit billion until 2023. Whereas some larger titative easing (QE). To complement this impact of ageing societies showing up in countries are receiving more in nominal cancellation, eurozone member states Significant structural reforms Portugal made when its economy was supervised by the terms of economic strength, because terms, in terms of a percentage of GDP, would, they argue, commit to reinvesting troika, debt reduction in 2019, and a likelihood of using EU ‘bazooka’ funds to green there are fewer workers in the economy Portugal is a very important recipient of an equal amount of money into long- up and digitalise the Portuguese economy, mean that despite the current pandemic to be able to fuel growth. This also these funds which will, says the Moody’s term, sustainable investments. i mpacts the fiscal strength of govern - analyst, help “ramp up the country’s However, Carlson says it is not neces - crisis, Portugal stands to keep its debt management on track, says Sarah Carlson, ments, as it becomes harder to sustain green and digital transitions” (The EC sarily likely you would get large-scale Senior Vice President Sovereign Risk at Moody’s Investor Service deficits or keep the annual balance of wants 37% of these funds to be used for debt reduction because of debt cancella - public sector finances level with rising ‘greening’ the economy). tion because it is possible that national TExT CHRIS GRAEME ageing costs. This, says Carlson, makes it “Portugal is a great example of an EU central banks would have to be recapi - harder to get debt levels down. country with a backlog of public invest - talised by governments, so the net-net ment projects and has a very good track impact would be small because it would y the end of the first quarter of INCOME CONVERGENCE AND record of being able to absorb EU funds, appear to be monetary financing and B2021, Portugal’s economy will have DEBT BURDEN which is not necessarily the case in all therefore challenging in the Euro Zone. contracted by 7%, and its public debt Portugal’s per capita GDP is roughly countries,” says Carlson, giving Spain and Having a large debt burden, however, will be €290 billion, 130.9% of Gross around 80% of the EU median and the Italy as examples. is still a lingering threat, since while Domestic Product (GDP), as Portugal country is fortunate in that one of the sil - “We are fairly optimistic at Portugal’s i nterest rates are expected to stay low takes on an extra €17 billion of govern - ver linings of the sovereign debt crisis 10 ability to absorb these funds in what is a for the foreseeable future, no one can ment borrowing to cover the devastating years ago is that Portugal did undertake once in a generation opportunity for the say that low-interest rates will remain effects of the coronavirus pandemic. some pretty significant structural macro- recipients of these funds to be able so forever. Faced with such stark figures for a economic reforms which helped to ad - to embark on future-proofing their There is always the risk that govern - small country of just 10 million people, a dress the problem, according to Carlson . economies, improving growth potential, ments (in countries like Portugal) could casual observer might think that the long- “What we expect to happen is that which in turn helps the process of debt have to pay much higher rates to fund term credit situation for Portugal is dire. the next generation of EU recovery funds reduction for countries like Portugal,” themselves. This was the case with In fact, Sarah Carlson, Senior Vice Presi - - €15.3 billion in grants, including €13.2 says the sovereign risk expert, adding that P ortugal in the 2011 sovereign debt crisis dent of Sovereign Risk at Moody’s billion between now and 2023 - will pro - Moody’s have seen a big increase in leve - when interest on lending rates shot up Investor Service, says that providing vide Portugal with a significant opportu - rage during the coronavirus pandemic. to an unsustainable 7.5% as Portugal interest rates don’t suddenly go up, the nity to address the growth challenge that “It is easier to get your debt burden was perceived to be at a greater risk of outlook for Portugal isn’t so bleak. it faces,” says Carlson. down if you are in a fast-growing eco - default and resulted in the IMF and ECB “This is not a typical recession and I However, one of the important lega - nomy, than if your growth potential having to step in. wouldn’t expect to see a typical recovery,” cies of the coronavirus crisis is debt is stuck at a much lower rate,” says she says. b urden, with very large increases in debt Carlson. PORTUGAL’S BANKING SECTOR Carlson points out that one of the burdens in some cases (Portugal’s will For Moody’s, the main driver of the ways the recovery will behave differently have increased by 17% to €290 billion). PORTUGAL RATING OUTLOOK assessment for susceptibility to event risk is in the path for unemployment. “It is not as large an increase in Portugal Moody’s continues to see a ‘positive is still banking sector risk, which has an “Now, we have European countries as we have seen in France but still very outlook’ on Portugal’s rating for now. effect on the rating range that it has for keeping their economies and labour high nonetheless,” she opines. When deciding on rating actions, a Portugal (Baa1-Baa3), with the overall markets on life support through very Carlson points out that even though ‘positive outlook’ is driven by two factors: scoring level at Ba. large-scale public expenditure on fur - there is more debt, and in some cases a before the pandemic, Portugal’s debt had “There isn’t a particularly high proba - lough schemes, temporary unemploy - lot more, across the board debt affor - declined at a faster rate than expected, bility of there being a materially large ment, business support schemes and dability continues to improve. This is and despite the increase in debt as a need to recapitalise the Portuguese guarantees, but all of this will roll off once b ecause more expensive debt is rolling result of the pandemic (+ €17Bn), the b anking sector, but in the case of a sys - the public health crisis passes,” she says. off and is being replaced by cheaper debt. ratings agency expects the debt burden tematic institution failure, there is still, in “We do expect there to be an increase In the case of Portugal, debt affordability to start declining fairly quickly, foreseeing our view - across all countries, not just in the unemployment rate (Bank of Por - has gone from 7.5% going into the global a small decline this year, and a slightly Portugal - the likelihood that governments tugal estimates are 8.8% in 2021). Most financial crisis, now falling to 4.8%. larger decline next year. would still step in to help support banking investors we have spoken to, say the eco - “The smaller that interest burden is, However, any policy of debt cancella - sectors,” concludes Sarah Carlson, Senior nomic recovery will be ‘K’ shaped, mea- you don’t have the borrowing costs tion from the EU is viewed as highly unli - Vice President Sovereign Risk at Moody’s ning the unusual scenario where certain crowding out other more productive areas kely for political reasons, and because Investor Service. í

www.essential-business.pt 52 www.essential-business.pt 53 Essential Embassies Essential Embassies

a Foreign Office restructure in 2012 saw Being a consul: the decision to have only one Lisbon “WHEN I LAID A WREATH AT THE REMEMBRANCE based consul in Portugal. SUNDAY SERVICE, I RECOGNISED THAT IT WAS THE “I wanted to stay in the Algarve and MOST HUMBLING EXPERIENCE OF MY LIFE.” applied for the position of vice-consul The best job for a here in Portimão, got it and have been here ever since," he explains. The job, according to Jewell, is very varied and is supported by a team of nine uK resident in Portugal in Portugal, working as one team across two locations, with four in Portimão and five in Lisbon. Working as British Vice-Consul in the Algarve is the best job a British resident can have, “There are four consular officers deal - according to Clive Jewell, who has had to deal with just about everything over the past ing with front-line cases, and two vice- since the start of 2020, including home - “My jaw dropped and I began to think 10 years - from disappearances and murder to hundreds of stranded holidaymakers consuls who lead in complex situations lessness, joblessness, or financial pro - about the consequences and practical and those of a more public nature,” he blems that can lead to vulnerability when machinations,” he said. TExT CHRIS GRAEME points out. something suddenly goes wrong. “The impact on us as a consular team, The range is vast: hospitalisations, “Then it is a case of helping them with 2.5 million UK visitors in 2016, was deaths (by accident and tragic cases), connect with their families for support or that while our caseload would be the n 2009, at the age of 52, Clive Jewell murder, suicide, people dealing with local authorities,” he points out. same, and we’d have to focus on that, we Ileft his dream career in the travel mental health challenges, and missing knew it would be a long and intricate business and responded to an advert in person cases — which he says are “par - EXCELLENT RELATIONS WITH process for the Embassy, that would the local English language newspaper ticularly traumatic” for the families in - THE AUTHORITIES bring us many new challenges." Algarve Resident. It was for the post of volved because of the uncertainty of what Jewell stresses that it is paramount to Jewell remembers that in the early British Consul in the Algarve and he has happened to their relative. Then, have good links and working relationships days, the team did two immediate out - certainly wasn’t overconfident that he there are cases where people fall victim with the hospitals, police, social services reach events with the then British would get it. of burglary, assault and sexual assault. and other authorities, so when cases a mbassador Kirsty Hayes, in Faro's São Jewell had worked for 33 years in the “Although it is a fact that Portugal is happen the team knows who to contact, Brás municipality, with over 300 people, tour operator business since he was 19 - one of the safest places in the world, or in which direction it can point people and in Lagos which had around 160 eight years in London and 25 years over - n evertheless things happen,” Jewell says. to get them back on their feet, or back a ttendees. These were followed by over seas. As a holiday representative and But what personal incidents have to the UK. 40 more events, attended by 2,300 peo - manager, he worked in Menorca, Ibiza, most touched Clive since he has been in Maintaining and nurturing contacts ple, both with Kirsty and current ambas - Costa Brava, Crete, did three winters in this job and what were the most difficult with the authorities in the good times is sador Chris Sainty, sometimes involving the Italian ski resort of Livigno, before moments? essential, says Jewell. senior ministers, local mayors and high- eventually settling in Portugal in 1989. The saddest case he has had to deal “You don’t just turn to people and pick ranking officers from the Immigration "I remember looking through the job with was the tragic death of a little up the phone when you need their help, and Borders Service (SEF). description and noticing that I ticked the boy who had drowned. He does not go you have to work hard to establish those The concerns then, which remained boxes for all the requirements," Jewell into details. relationships which are very much give the same throughout, were residency says. "I didn’t realise there were so many The Faro airport management was and take,” he says, stressing that the rights, access to healthcare and driving parallels between a job working in the “simply wonderful” when the airline Portuguese authorities are incredibly licences, as well as questions like consulate and tour operating, where Monarch and later the tour operator helpful and cooperative. ‘should I take Portuguese citizenship?’ essentially you are looking after British Thomas Cook collapsed, which in the “I am really proud to say that we have which the Embassy stepped aside from people coming to a foreign country.” case of the former meant the consular an excellent reputation with them from advising on due to it being a very He adds that some of the situations team were camped at the airport for the feedback we get.” p ersonal decision. he now deals with at the consulate are two weeks. After receiving their assistance, for “There was a slow and steady increase not a million miles away from the issues “It was a particularly sad moment instance, Jewell says he sends a letter to in applications rather than a mad rush," he dealt with as a tour operator. b ecause it took me back to earlier in my someone’s superior to thank them for Jewell noted. career when I worked for Thomas Cook,” their help. As for getting residency status — ON TOP OF THE WORLD he recalls. which was and is always encouraged “I was on top of the world when I got The event that most moved him, how - BREXIT by the consulate — in 2016 there the news in June 2010, but it was quite ever, was when he first laid a wreath on On discussing Brexit, the aftermath were 19,391 registered UK citizens in daunting because I was coming from a behalf of the Embassy at the Remem - and transition phase, Jewell recalled that Portugal. However, the consulate esti - lifetime in the private sector to the public brance Sunday service at St. Luke’s during the referendum he had been mated that for every person that was sector,” Jewell recalls. Church. “I recognised that it was the most unable to sleep. He got up in the night at registered, there was probably another Jewell describes the work as being humbling experience of my life,” he says. the precise moment that newscaster who hadn’t. The registration numbers customer-service and team-work orien - Jewell points out that there has been David Dimbleby announced the UK was went up every year until by 2020 the tated. His post was originally consul, but a considerable increase in welfare cases leaving the EU. number was 46,000. í

www.essential-business.pt 54 www.essential-business.pt 55 Essential Opinion Essential Opinion

“THE WHOLE PARQUE IS STILL SHOWN TO VISITORS AS AN EXAMPLE OF SUCCESSFUL URBAN PLANNING, AND IT SHOWS WHAT CAN BE ACHIEVED ON THE BACK OF AN INTERNATIONAL FAIR. ANTÓNIO DARED TO DREAM BIG AND LIVED TO SEE HIS DREAM COME TRUE.”

david Sampson Inhouse Contributor the remaining 300 ha (except for the new train station) would be Some of the best modern buildings in Portugal are in the designed and developed by private enterprise. Parque. Visitors come to the Oceanarium, the Arena, and to the After some initial objections, a masterplan for the layout of the trade fairs centre Lisbon International Fair (FIL). The river has been whole redevelopment area was approved. It was decided that the given back to the city, and where there were once oil tanks, area would be built with a modern underground infrastructure containers and piles of scrap there are now riverside parks, walks António Cardoso e Cunha: which included telecommunication systems, the delivery of steam and a cable car. to all buildings and a suction system for the removal of waste. Some of the buildings have not weathered so well. Two of the The man who dared to dream big António faced innumerable difficulties but he always remained most flamboyant designs, the Oriente station, with its concrete positive. Properly clearing the site and laying solid foundations was trees, designed by Santiago Calatrava and the Expo’s Pavilion of more difficult than expected and the estimated construction costs Portugal, with its hanging concrete canopy, designed by Siza Vieira, “António Cardoso e Cunha (1933–2021), politician, was the Money was always going to be an issue and António was clear started to rise sharply. The weather didn’t help as the winter rainfall cost much too much. Neither have been used as hoped. The first Portuguese nominated as a European Commissioner, as that the Expo needed to be at least in part self-financing. He saw in 1996 and 1997 was unusually heavy. Secondly, many of the station was meant to be the terminus of the line from Porto, but it well as a minister, member of parliament, and commissioner an opportunity for the government to make money from Expo by infrastructure works, such as the new road, rail and metro links, is now just an extra stop on the way. After many failed attempts to of Expo-98. died on 25 January of undisclosed causes.” its becoming a real estate developer. He asked that the Expo area were due to be built by third parties and neither the cost nor the find a long term use for the Pavilion, it is now due to be converted be extended to 300 hectares to include all the land around the timing were within his or Expo’s control. for use by the University of Lisbon. dock between the river and the railway, right up to the edge of Thirdly, in 1995 the political climate changed. The PSD lost the But the whole Parque is still shown to visitors as an example of Thus did Expresso, Portugal’s leading weekly newspaper, record the heavily polluted River Trancão. election and António Guterres became prime minister at the head successful urban planning, and it shows what can be achieved on the death of Antonio Cardoso e Cunha. The obituary, such as it was, Cavaco Silva agreed to this idea and the whole government of a Socialist (PS) government. Joao Cravinho, the new Minister of the back of an international fair. António dared to dream big and came after descriptions of the lives of convicted killer Phil Spector, took on the proposed development as its own. Indeed the Public works, described Expo as a fatal inheritance and promised lived to see his dream come true. As Cavaco Silva wrote after his the TV interviewer Larry King and the Benfica football trainer John concept of regenerating an important, rundown area of Lisbon to do everything he could to ensure that the Portuguese did not death: “There is no doubt that the success of Expo as well as the Mortimore. Below it came Rosalina Machado, the former director and linking it to the rest of the city became one of the primary have to pay an excessive bill as a result of Expo. urban revolution which totally changed the layout and character of the Ogilvy advertising agency. purposes of Expo-98. He also agreed to grant Expo the power António was liked and respected by all those who came into of the East End of the city were primarily due to the vision, the The city of Lisbon and indeed the whole of Portugal owe compulsorily to acquire all the land within the site, and then to contact with him. He was doing well in selling the project to the courage and the outstanding ability for organisation of António António better recognition than this brief note. what he achieved parcel up and sell plots of land and to grant all the necessary people of Portugal and steering a steady course through the Cardoso e Cunha.” in his five years as commissioner for Expo-98 deserves to be planning permissions and building licences. He took away these political minefield which surrounds state enterprises in Portugal. The only pity is that he was ahead of his contemporaries in remembered. At the time of his resignation in 1997, a little more powers from the local authorities, and also their power to delay But once the PS became the ruling party, it became “impossible terms of his imagination and drive, and he was not willing to bend than a year before the exhibition was due to open, he said that he the project or private building on the site. for me to maintain,” António wrote later in his resignation letter, and pay court to his new political masters. Perhaps by the time of deserved a statue in his honour, and the arrogance behind that The major issue initially was that there had previously been an “the political neutrality of the project... I have found myself trying the 50th anniversary of Expo in 2048 he will get his statue. remark was one of the factors that led to his undoing. But his oil refinery on the site and much of it was still occupied by oil tanks to contribute to the success of what everyone agrees is an impor - contribution to Lisbon should not be forgotten. and rubbish dumps. The soil was contaminated and needed to be tant national project in the face of a clear lack of confidence in me when it was announced in 1992 that Lisbon had been chosen removed. Also, the eastern edge of Lisbon had no road links either and the open expression of lack of trust.” as the venue for the next world fair, there were no plans available to the rest of Lisbon or to the rest of the country. The site was cut of what should be built on the proposed site at the extreme eastern off by the railway and there was only access at the western end. THE nEW CiTY in THE EAST Of LiSBOn end of Lisbon. At the Improvement of Lisbon conference in early António did however have a few advantages besides his Looking back now, 23 years after Expo-98, we have to recog - 1992 the east of Lisbon was not even mentioned as one of the political connections with Cavaco Silva and inside the ruling PSD nise the enormous success of the whole regeneration project. three priority areas for redevelopment. The designated 30-hectare party. The Expo team spent a lot of time at Expo-92 in Seville. They After initial scepticism developers flocked to Expo to build their site around the former flying boat dock at Vila do Bispo on the River saw that the fair itself was a great success, but that once the fair projects. Around 25,000 people now live in the Parque das Nações, Tagus was shown edged in red. That was all. was over, little remained to show where it had been. The pavilions and the offices there are popular with tenants and investors. The The then prime minister Aníbal Cavaco Silva chose António to and the accommodation built for visitors were all taken down and whole area between the centre of Lisbon and its eastern edge has lead the project at a time when his government was already under sold off. been revitalised. The transport links now mean that by road, attack because of overspending on other large building projects António decided that all the buildings erected for Expo-98 subway and rail one can easily travel between the Parque and the such as the Belem Cultural Centre and the head office of the state- would be permanent and that the brief for architects should rest of Lisbon and Portugal. A new bridge across the River Tagus owned Caixa Geral de Depósitos bank. Cavaco Silva appointed a specify where possible the planned long-term use of the building. links the area to the Alentejo and the Algarve regions. There are politician who was willing to override anyone who objected to the Secondly, although the buildings within the 30 ha exhibition site now seven links to the site under and over the railway. The whole government’s plans. would be developed mostly by Expo-98 itself, all the buildings on area and the River Trancão are now free from pollution.

www.essential-business.pt 56 www.essential-business.pt 57 Essential Transportation Essential Transportation

“We have the responsibility to deliver SMART CITY SENSE PROJECT Thales Portugal’s cooperation with turnkey projects worldwide," said Thales This project involving Thales Portugal ANA/Vinci has been going for some Portugal CEO João Araújo. "At any time, uses technology to create better cities in years and aims to look at how passengers we have several projects running on the which to live. It explores the integration move through an airport and if flow can five continents, including metro projects of several types of sensors to give munici - be improved. in Dubai, Doha and Hyderabad, rail pro - pal authorities and all entities in a living The study identifies the time of jects in South Africa, Norway and Portu - city intelligent information on what is arrival at the airport to the time of board - gal, passenger information projects in going on and how citizens are impacted. ing the aircraft, how many people are in Mexico and the US, aeronautics projects In addition to the usual sensors, the airport at any given time, how that at all the airports in Thailand, two air - came ras and data feeding traffic detec - changes throughout the day, and how it ports in China and space programmes tors and analysis tools, Thales Portugal correlates with flight timetables. with the ESA (European Space Agency) has added the human factor by inviting From a commercial point of view, and the South Korean Space Agency." citizens to contribute through comments, studies also look at how long passengers These projects are driven from the information and reports. This allows the linger in the shopping areas, which areas company’s Ground Station on the island company to get a real-time and large they prefer, how physical furniture and of Santa Maria in the Azores archipelago. scale feed of how a city “pulses” by using barriers affect movement, and how all this “This requires a strong engineering each citizen as a Human Sensor. information can be used when designing team based at the Thales Portugal Oeiras With this information, the various future airports, to give some examples. Valley premises and operational teams on authorities in a municipality have enough “This information for developing the ground in the destination countries,” data to develop protection and transport solutions is very relevant to improve air - Araújo explains. policies, improve environmental health, port activities from reducing queues at create more efficient public services, passport control and check-in counters, to A PIONEERING PARTNER improve street repair services, lighting the number of staff needed on the ground, IN TRANSPORT conditions and even fuel efficiency. and provides the concessionary company Araújo says that Thales’ team in Por - which runs the airport with information tugal has been one of the main players in AEROSPACE IN PORTUGAL that can help develop performance- the transformation and modernisation of Thales Portugal carries out activities enhancing measures," concluded the transport in Portugal since the early in the Aerospace & Space field through CEO of Thales Portugal, João Araújo. Thales Portugal: 1990s. Edisoft. Building on extensive experience “We explore different technologies “In the late 1980s, the Portuguese rail on both Portuguese and European pro - and solutions to meet these develop - transportation authority CP decided to grammes, the teams develop advanced ments and cater to and monitor the modernise its technology with electronic engineering solutions for: Embedded variety of situations that are encountered. delivering turnkey train control systems, with Thales tech - Systems, Satellite Navigation and com - There is a lot of theory behind it, but also nology chosen as one of the two solutions munications, Ocean Surveillance and a lot of trial-and-error. However, we’ve used," Araújo points out. Earth Observation, Aerospace and Air been successful. In 2017 one of our projects worldwide “Since then, we’ve been involved in Traffic Management, Crisis Manage - projects with ANA/Vinci received the the modernisation of train control sys - ment Solutions and Maintenance, Sup - Vinci Innovation Award in the category of tems, allowing trains to run faster, safer port and Operation Services for Space Management solutions." í and more efficiently. We’ve also intro - Programmes. Thales in Portugal is a Competence Centre and market leader for integrated transport duced new operational concepts for train Thales worked on the design and solutions, equipping more than 1,200 km of the national railway network. regulation procedures by providing new development of Portugal’s air traffic In Portugal since 1990, it also operates in several other activity domains and more powerful tools, allowing cus - management system in partnership with tomers to change their modus operandi Eurocopter, which developed the mission including aerospace, marine and defence and security and organisation." system for the NH-90 helicopter. TExT CHRIS GRAEME Araújo mentions that Thales Portugal Thales and Edisoft are also respon - is proud of having taken signalling and sible for operating and maintaining the rail integrated communications systems Galileo Sensor Station, used to monitor ast year, Thales Portugal moved into Thales Portugal’s key objectives ment company ANA (and the French to a new quantum level, and adds that the Galileo Satellite orbiting Earth and Lnew state-of-the-art premises at through these agreements are to develop holding company VINCI which owns it) the long-term investment plan from the have additionally established a support Quinta da Fonte, a business, science and joint projects and forge a close collabora - and public road and rail management Portuguese authorities meant that the centre for the Real-Time Executive for technology hub in Oeiras, 20km from the tion between these institutions and company Infraestructuras de Portugal in company could make significant invest - Multiprocessor Systems (RTEMS) for Portuguese capital Lisbon. industry. To facilitate this local coope - the field of innovation and development ments on the industry side. space programmes. It is a fitting premise for a multina - ration, Thales reinforced its shareholding for monitoring areas in airports and “This visibility allowed us to look tional company, which over the last five position in the software and systems passenger flow management. b eyond and identify some innovation do - MANAGING AIRPORT years has launched an Innovation Hub engineering company Edisoft from its More recently, the Innovation Hub mains, like the passenger information PASSENGER FLOWS and signed a cooperation agreement with original 30% stake to a controlling 65% has been developing the Smart City and entertainment, starting locally with Araújo says that monitoring passenger Instituto Superior Técnico (IST), Portu - stake in 2013. Sense Project jointly with IST, the small projects to being a global leader flows in airports is of paramount impor - gal’s largest engineering, science, tech - Also, Thales signed an agreement Faculty of Human Kinetics (FMH) and which dared to dream and succeeded,” tance not only for operational purposes but nology and architecture school. with the Portuguese airport's manage - the Lisbon Municipal Police. he says. also for commercial and business reasons.

www.essential-business.pt 58 www.essential-business.pt 59 Essential Wellbeing Essential Wellbeing

That personal experience led him to the need and importance of the charter “There are different sources of stress The Mindful Business Charter re-evaluate the importance of mental even greater. — some from our own heads, some from health for all of the bank's 65,000 “I know there are times when I’ve felt the work we do in a high-pressure envi - e mployees. under pressure. If you take what we ronment, and some from the way we Senior executives, including Horta- normally have to deal with and then work with each other,” says Martin. Horses and lush green grass Osório, underwent a mental health throw in the global pandemic with all the Martin explains that we don’t mean awareness programme while thousands remoteness, isolation and worries that go to cause stress for others, but often we of mental health first aiders were trained with it, we are certainly now seeing an do, and then we don’t talk about it. “If At 40, UK high-flying senior law firm partner Richard Martin had it all, but while on a throughout the bank with an online increase in the prevalence of mental we talked about it, we could pinpoint French family holiday in 2011 driving on a busy Paris ring road, he felt dreadfully ill p ortal being set up for staff. They were health issues in the workplace in all sorts cases of unnecessary stress and do encouraged to use it if they were strug - of different ways,” he explains. something about it, and Barclays recog - and just stopped. It was the start of a nervous breakdown brought on by years of stress gling with issues either at work or in their Martin continues: “We will not be nised their role as a significant client in and mental exhaustion. Martin explains to the British-Portuguese Chamber private lives. going back to anything like what we had this area.” of Commerce (BPCC) how he now helps others avoid the same problem The bank also increased its employees' before the pandemic anytime soon. We Martin says it’s all about removing insurance cover for mental health to the are seeing an increase in the prevalence unnecessary stress, creating healthy TExT CHRIS GRAEME same level as that of physical health. of mental health conditions and a reti - boundaries, knowing when to say ‘no’, cence to talk about it because employees and being aware of the impact of what THE MINDFUL BUSINESS CHARTER worry that if they do, their bosses will we’re doing and of how we communicate here is an old farming truism which professionals who, for one reason or Martin’s mental health experiences think worst of them and treat them less in terms of e-mails and meetings. Tsays that the more lush green grass another, could no longer cope with high led him to get involved with the Mindful favourably because there is still so much “Let’s only have meetings when we you give a horse, the more it will eat until levels of sustained stress. Business Charter, initially a collaboration stigma surrounding mental health.” need to, invite only those people who it eventually makes itself ill. This applies between leading banks and law firms Chris Barton, CEO of the British- need to be there and when they need to to dedicated and work-conscious profes - IT CAN HAPPEN TO ANYONE committed to driving change in how peo - Portuguese Chamber of Commerce be there, avoid meetings at lunchtime, be sionals too. The more work they are In fact, Martin is not the first suc - ple work. (BPCC) which has been thinking about mindful of timezones, don’t cancel meet - given, the more they will accept, until cessful high-profile professional to warn The Mindful Business Charter, stress at the chamber for several years, ings five minute before they are due to one day something simply snaps. about the toll that stress and lack of which aims to create healthier and more agrees, saying he sees more people work - start and allow people to join meetings in As a successful employment lawyer, boundaries in our working lives can have effective ways of working, was set up out ing longer hours than they did in the a way that is more appropriate for them. Richard Martin had been aware that on our physical and mental health. of discussions between the in house legal workplace, starting earlier, finishing later Think about if you really need to send some of the people he dealt with were Portuguese banker and outgoing team at Barclays and two of their panel and working at weekends. that email and if it is really necessary to showing signs of stress and strain, and Lloyds boss António Horta-Osório went law firms, Pinsent Masons and Addle - “I also see more flexible working, copy 50 people who really don’t need to clearly weren’t very well. Martin would public in 2019 with his personal expe - shaw Goddard, along the following lines: particularly during Covid-19, whereby get them,” he advises. tell them that he would deal with the rience of workplace stress, showing it can • The people working in their busi - people start at hours that are convenient Richard Martins concludes by warn - legal aspects of their case, but would affect anyone. nesses are highly driven professionals; to themselves, working later in the day ing that Covid-19 has removed the last also suggest that they get professional The year was 2011 and banks were • We do pressured, often complex, and perhaps getting out of sync with a vestiges of any boundaries and healthy medical help. still reeling from the ravages of the great work which requires high levels of cogni - normal working day which they would working practices we once had. Then aged 41 (Richard is now 50 financial crisis with the European sove - tive functioning; have working from a building,” he says. “The charter started in the sectors with three grownup children aged 18, 20 reign debt crisis looming on the horizon. • We thrive on that hard work and Martin points out that when stressed where these problems were most evident; and 23) he was a successful high-flying The UK’s largest high-street bank, pressure; our brains don’t work well. The net result the legal and financial sectors in London, lawyer and partner in a famous London Lloyds, was in poor financial health and • In amongst that pressure and hard is blood is diverted away from or brains but its signatories now include compa - law firm and leading a large team. He sat to die. I felt out of control, my breathing the man charged with returning it to work, there is stress, some of which is as the pre-frontal cortex is affected by the nies from other sectors and has spread to on the management committee and was was all over the place, I felt sick and all I profit was under huge pressure to turn unnecessary; flight or fight reflex. non-UK organisations, some of them being lined up as a managing partner. could think of was escaping from where the bank around and the stress started to • When we are stressed we work less “Long term persistent stress is not international,” he says. I was,” Martin recalls. affect his own health. productively, and it is not good for our good for our work quality for our clients “It’s not about slacking and taking it I WAS A ‘YES’ MAN Martin stopped the car in the middle "I was very mindful that the bank was health; and or employees,” he reflects. easy. It’s about working hard and doing so “I had it all! Great job, lovely wife and of the lane, got out and started walking in a very weak position to face adversity," • If we could remove that unneces - in the most healthy and sustainable way. kids and the big house. But I was also across several lanes of fast-moving Paris Horta-Osório told the BBC at the time. sary stress, we would enable people to BOUNDARIES AND COMMUNICATION Their energy needs to be used as effec - one of those people who say ‘yes’ to every - traffic. "It was a problem that was going around work more effectively and efficiently, as One of the 65 signatories to the tive and healthily as possible. Above all, thing, including getting involved in the “A French policeman stopped me and my mind constantly, which led me to well as be happier and healthier. Mindful Business Charter, which was it’s about respecting boundaries and community,” he said. asked me what I was doing and I didn’t sleep less and less. And the less and less The charter rests on several key launched in 2018 and includes compa - begins with a conversation and the In fact, anyone looking from the have an answer.” sleep progressively led me to exhaustion, p illars: openness and respect, smart nies like Lloyds Bank, RBS, Addleshaw courage to be human and vulnerable.” outside would have thought how well He didn't realise it at the time, but it and then to not sleeping at all, which was meetings and mailings, respecting rest Goddard, Pinsent Masons, Clifford *This article was based on the webi - Richard Martin was doing, and indeed he was a panic attack. It led to a breakdown a form of torture so I had to address it periods and mindful delegation. Chance, Ashurst, Simmons and Sim - nar ‘The Mindful Business Charter’ was... On the outside that is. and the start of a huge change in his and I did." Richard Martin, who is a mentor and mons, Eversheds Sutherland, Norton organised by the British-Portuguese Little did he know that he himself life which would begin with a month With the consent and understanding consultant for the workplace behavioural Rose Fulbright, Baker McKenzie and Chamber of Commerce (BPCC). For would fall victim to stress from overwork. in a psychiatric hospital where he met of the board, he took eight weeks off to consultancy Byrne Dean, says the global Hogan Lovells, is Barclays Bank PLC. At more information on BPCC webinars “In Paris, at the time, I had no idea people who were just like him; ordinary recuperate before returning himself, and Covid-19 pandemic has only exacerbated Barclays, they wanted to do more to fight and activities or joining the BPCC go to what was going on. I thought I was going and often well-educated and successful ultimately the bank, to health. stress and mental strain at work making the negative impacts of stress. www.https://bpcc.pt/ í

www.essential-business.pt 60 www.essential-business.pt 61 Essential Associations

The International Club of Portugal Promoting diversity

The International Club of Portugal is more than a networking club for business leaders. It is the place where investors, the media and diplomats gauge the business mood of the country and look for changes in Government policy direction. Essential Business talks to its president and founder, property investor Manuel Ramalho

TExT AND PHOTOS CHRIS GRAEME

ince it was founded 15 years ago, Happily, Manuel Ramalho has retai - which he was a member of its first gov - Sthe International Club of Portugal ned many friends from his childhood erning body. has played host to most of the great and with whom he still mixes and talks about Today, Manuel Ramalho is a member good in Portugal’s political, diplomatic, what he calls his ‘vocation’ when they of many business, cultural clubs and economic, cultural and sporting society. meet up. chambers of commerce, including the From ex-presidents of the republic and Manuel Ramalho organised events, American Club of Lisbon and the Ame - current prime ministers and members of particularly in the groups which they rican Chamber of Commerce in Portugal the government, to media personalities, were in, but he noticed that there was (AmCham), the Academia do Bacalhau sporting celebrities, filmmakers, high- “something which sometimes aroused de Lisboa and the Grémio Literário. ranking military figures and ambassadors conflicts of interest among us, because from many nations around the world. we didn’t know each other well enough,” THE INTERNATIONAL CLUB The club regularly organises lunch he says. OF PORTUGAL events with guest speakers of renown for “I formed a deep conviction that the Manuel Ramalho says he founded groups of anywhere between 100 and overwhelming number of situations that the International Club of Portugal 300 members and guests. But what was separate people, countries and institu - (ICPT) because there had not existed in the club’s genesis and what of the man tions occur because of a lack of commu - Portugal, not even in a centre famous for behind the ICPT? nication between parties. When we its asso ciations and clubs like London, a “I have always had a very deep passion communicate, obviously we can identify club or association geared towards cul - for associativism, for all those organisa - many different points of view, but also a tural and international diversity. tions that bring people together, particu - lot of things that unite us” he explains. Up until then, there had been asso- larly people from different political, The ICPT president says that unfor - ciations and institutions which focused religious, financial, cultural, and profes - tunately a tendency exists to maximise on a particular professional group for sional circles. People from a broad range ideas that separate people rather than lawyers, economists or nationalities such of nationalities and the widest areas of those they have in common. as the Angola or American clubs. knowledge,” says Manuel Ramalho. On the other hand, he believes we “I even noticed this in London be - The ICPT president says he has held have to learn to live with a diversity of cause I visited many clubs where the this passion from an early age, when he opinions and points of view, while never members had interests in a specific area. atten ded primary school and organised creating reasons for not getting on well There didn’t seem to be a club celebrat - events such as picnics and discussions with one another. ing diversity in that great world capital of with his school fellows involving even Later on, despite his busy profes - associativism” he remarks. the tea chers and parents of these school sional life as a property dealer, Manuel “I thought there needed to be a club friends. Ramalho found time to be involved in where people with different interests, In fact, he says it wouldn’t be an the foundation of several associations expertise and knowledge and of different exaggeration that he did so to such an both in Portugal and overseas, an exam - nationalities, with different cultural extent that he was a “born group orga - ple being the respected ANJE - National backgrounds and financial realities would niser” as though it was in his DNA. Association of Young Entrepreneurs, in fee at home,” he explains.

www.essential-business.pt 62 Essential Associations Essential Associations

“And if members of such a club could other great speakers in different areas Then, there are other necessary ex - “IN PORTUGAL AMONG SOME ASSOCIATIONS AND CLUBS THERE STILL mutually become wealthier by sharing who have nothing to do with the diplo - penses, the sound technicians, musicians, IS A CERTAIN DISTRUST OF THE COMPETITION. IT IS IMPORTANT THAT with each other their awareness and matic corps. photographers, the administrative staff. ASSOCIATIVISM DOESN’T DESCEND INTO A KIND OF FOOTBALL knowledge, if it didn’t exist, which ac - “This requires a lot of logistics and “Fortunately we have a high number cording to the research I did at the time, resources, particularly financial, because of members, including corporate mem - GAME MENTALITY WHERE ONE HAS TO WIN AND OTHERS LOSE.” it didn’t anywhere in the world, let alone it implies international travel and accom - bers which pay their membership fees Portugal, then one needed to be created” modation but we are working on this,” and the help us to meet our running ex - says the ICPT president. says Manuel Ramalho. penses and overheads” says the ICPT In short, there is today no club that is president. so all-embracing as the International PROTOCOLS WITH INSTITUTIONS The ICPT is also lucky to have im - Club of Portugal, that is frequented by One area in which the International portant sponsors such as the security sports personalities, opera singers, foot - Club has been involved in is the setting firm Grupo8 Segurança, the real estate ball managers, economists, politicians of up of reciprocal protocols with institu - deve loper AM48, Carclasse, the multi - every shade of political opinion, bullfight - tions in different countries so that the valence Grupo Bel, Leaseplan, construc - ers, bankers, great business leaders, am - club’s members who tend to travel exten - tioncompany VazConstrói and Duartare bassadors and people of all nationalities. sively, can attend other clubs in London, Consultancy. New York and São Paulo and enjoy the “Six sponsors is the limit from my AN INTERNATIONAL AGENDA same access to benefits of membership point of view. We actually would have to The international Club, having achie- that they currently have at the ICPT. think carefully about accepting more ved much over the past 15 years, is cons- “This means that when the members sponsors, otherwise we wouldn’t be able tantly on the national and sometimes of these overseas clubs and institution to give them the adequate care and atten - international agenda. come to Portugal, they will be able to tion warranted for the investment sup - But the ICPT president admits that attend our events” says Manuel Ramalho. port they give us” says Manuel Ramalho, it has so far only achieved around 10% of This year the International Club adding that the club also has 14 media what he wants it to achieve. “There’s still moved to larger new premises on Lisbon’s partners including many of Portugal’s so much to do” he says, and one such smart Avenida da República which has a main national newspapers and several objective is to attract speakers from over - number of rooms where members can set sector and lifestyle magazines. seas. “We will start to have speakers of up small meetings. other nationalities”. SUPPORTING CHARITIES So far, it has enjoyed international BALANCING THE BOOKS Manuel Ramalho stresses that the after lunch speakers, but these have Careful management of expenditure, International Club of Portugal and its tended to be ambassadors such as those balancing the receipts that members pay members have always organised or sup - from the US, China, Israel, Italy, Angola, to attend an event is not always easy. ported different charitable causes and and in the near future the ambassadors Manuel Ramalho admits that these social solidarity organisations over the of the United Kingdom and Israel, but revenues are sometimes less than those years, with up to €10,000 awarded to also past speakers such as the CEO of which the club has to pay the hotel each from donations from the club, and Euro news, Michael Peters and EU MP where most of its events are held - the the president makes a point of saying that Charles Tannock. Double Tree by Hilton Lisbon. it has never applied for state subsidies. Manuel Ramalho recalls the unprece - Manuel Ramalho imparts a message dented occasion when the ambassador of to other associations and clubs of which Cuba and members from the Cuban he is familiar with most of them. “In embassy were sat on the same table as Portugal there still remains among some guests from the US embassy in Lisbon at leaders of such associations and clubs a a time when the two countries had yet to “I FELT THERE NEEDED certain distrust of the competition”. begin a dialogue towards improving bi- TO BE A CLUB WHERE “It is important that associativism lateral relations. PEOPLE WITH DIFFERENT doesn’t descend into a kind of football Another occasion highlighted was a INTERESTS, EXPERTISE game mentality where one has to win and lunch at which people linked to the other lose. All associations and clubs Angolan government were sat on the AND KNOWLEDGE AND OF which have a genuine interest in con - same table as those with the National DIFFERENT NATIONALITIES, tributing to and strengthening civil soci - Union for the Total Independence of An - WITH DIFFERENT CULTURAL ety should celebrate this culture of gola (UNITA) - both representing parties BACKGROUNDS AND associativism” he says. which had been, in the not too distant “We should have good relations with past, involved in a bloody civil war that FINANCIAL REALITIES each other, and the more events we hold had torn the country apart - and which WOULD FEEL AT HOME.” where we instil these habits in Por - had never occurred before. tuguese society, the better” the president And the ICPT president reassures of the International Club of Portugal con - that the club is making contacts with cludes. í

www.essential-business.pt 64 www.essential-business.pt 65 Essential Event Healthcare investment is critical for the economy

Portugal has faced four challenges because of the Covid- 19 pandemic: First, maintaining the health service’s capa - city to treat non-Covid patients. Second, slowing the spread of the virus. Third, dealing with seasonal inﬂuenza, and fourth, to do with the economy. “In Europe we have been cutting health funding, and governments always attack health budgets when they want to invest in other areas. Health is a critical area, yet has been cut from 16% to 13% in recent years. This is counterproductive since a healthy population is an economically more productive population,” argued Miguel Guimarães, the president of the Portuguese Medical Association at a lunch organised by the International Club of Portugal. Miguel Guimarães (Bastonário da Ordem dos Médicos) e Manuel Ramalho (Presidente do International Club of Portugal)

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