BPI Provides €14.5 Million in Green Financing for Palácio da Baronesa Conversion
The historic Palácio da Baronesa in Lisbon is slated for conversion into a luxury aparthotel, backed by a significant green financing package. In a recent announcement, the bank BPI confirmed it has provided a €14.5 million portion of a €29 million Green Loan to the Dutch hotel investor, The July, for the redevelopment project. The loan, structured as part of a banking syndicate with BPI as the agent bank, has a 15-year term.
Project Overview
The project will transform the 16th-century palace, located in Largo do Conde Barão, into a high-end tourist facility. The Dutch investor, The July, which specializes in premium aparthotels, was advised by the real estate services firm CBRE in securing the financing. The development plans include 88 accommodation units, a restaurant, a spa, a swimming pool, and a 1,200-square-meter garden. The property's strategic value is enhanced by its location, just a three-minute walk from the new Santos metro station.
Focus on Sustainability
A key component of the project is its focus on sustainability. The building is set to undergo a full energy certification process and is expected to achieve BREEAM certification, an internationally recognized standard for sustainable construction. This commitment to environmental standards was a crucial element in securing the green financing.
Professional Involvement
Several professionals are involved in the project, ensuring compliance and quality, including Architects, Civil Engineers, Electricians, and Real Estate Lawyers. Their expertise guarantees that the redevelopment meets both historical preservation standards and modern construction requirements.
BPI Statement and Strategic Goals
In its official statement, BPI noted that leading this financing operation aligns with its strategic goals. “Leading this green financing operation reinforces BPI's position in supporting urban rehabilitation and the development of sustainable tourism projects, in line with the objectives of its 25/27 Sustainable Banking Plan,” stated the bank, which is headed by CEO João Pedro Oliveira e Costa. The project represents a notable investment in Lisbon's growing luxury tourism sector and highlights the increasing importance of sustainable practices in urban redevelopment.
Investment and Market Impact
The conversion of the Palácio da Baronesa is a significant undertaking that will preserve a historic asset while adapting it for modern use. The involvement of international investors and the focus on green certification reflect current trends in the European real estate market. The project is expected to contribute to the ongoing revitalization of the Santos neighborhood and the broader Lisbon waterfront area.
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Key Takeaways
- BPI provides €14.5M green financing for luxury aparthotel project
- Palácio da Baronesa to be converted into 88-unit luxury aparthotel
- Project includes restaurant, spa, swimming pool, and garden
- Focus on sustainability: full energy certification & BREEAM expected
- Professionals involved: Architects, Civil Engineers, Electricians, Real Estate Lawyers
- Supports urban rehabilitation and sustainable tourism development
- Investment contributes to revitalization of Santos neighborhood and Lisbon waterfront
