Avignon Capital, the European property investment firm and asset manager and York Capital Management have completed the acquisition of an office building in Lisbon for €22.3m.

The property is located on Avenida Miguel Bombarda, in Lisbon’s prime zone 2 market – strategically served by wider public transport and closely connected to the International airport.

The building comprises 7,240 sqm of lettable office space, split over ground and nine upper floors, as well as five lower ground parking levels. The investors will carry out a comprehensive refurbishment programme starting in Q2 to unlock additional value. The capex programme will include opening terraces for tenant use, upgrading technical equipment and upgrading the lobby, ground floor and communal areas to modernise the existing space into a sustainable and contemporary occupier offering.

Bianca Tristao, Investment Manager at Avignon Capital said: “Portugal is a market we have been following for some time and this acquisition presented an exciting value-add opportunity to acquire an office building in the centre of Lisbon with substantial upside potential.

The Lisbon office market is benefitting from strong occupier demand driven by the city’s increasing appeal to international companies, who seek to benefit from competitive rental levels relative to other key European cities and still have access to an educated labour force and the European single market.

We will utilise our asset management expertise to carry out a comprehensive capex programme to reposition the asset and deliver a highly desirable modern workspace.”

This acquisition fits into Avignon’s city-centric investment strategy, focused on key European cities underpinned by strong fundamentals.

Avignon Capital were advised by Uría Menéndez.