Dutch Group The July Secures €29 Million Green Loan for Lisbon Palace Conversion
The Dutch hotel investment group The July has announced it will convert the historic Palácio da Baronesa in Lisbon into a luxury aparthotel. The project is being financed through a €29 million syndicated green loan, with Banco BPI participating as a key lender and agent bank in the deal, which was advised by real estate consultancy CBRE. The operation was formally announced on Monday, detailing the plan to redevelop the 16th-century palace located in Largo do Conde Barão.
The financing structure is a 15-year green loan, a category of funding reserved for projects with positive environmental impacts. BPI confirmed its participation with a €14.5 million share of the total syndicated amount. This funding is earmarked for the complete reconversion of the historic site into a high-end tourist accommodation unit, marking a significant foreign investment in Lisbon's heritage property sector.
The planned aparthotel will comprise 88 accommodation units, a full-service restaurant, a spa, a swimming pool, and a private 1,200 square meter garden. This development aligns with the city's strategy to attract high-value tourism and investment by repurposing historical assets for modern use. The project specifications point to a target market of affluent international travelers and long-stay visitors, a growing demographic in the Portuguese capital.
The July is a specialized Dutch hotelier founded in 2012, with an existing portfolio of premium aparthotels in Amsterdam and London. A spokesperson for the company noted that this Lisbon project is a key part of its European expansion strategy. "The acquisition and redevelopment of the Palácio da Baronesa is a landmark project for us," stated a representative from The July. "It allows us to enter the vibrant Lisbon market with a truly unique property that respects its historical significance while meeting the highest standards of modern luxury and sustainability."
The project is scheduled for completion and opening in 2026, alongside other new locations planned by The July in Dublin and Amsterdam. The involvement of major financial institutions and advisory firms like BPI and CBRE underscores the project's financial viability and strategic importance. This redevelopment is expected to create local jobs during its construction and operational phases and contribute to the revitalization of the Largo do Conde Barão area.
Real estate market analysts in Lisbon view this as a positive signal for the city's property market. "This is precisely the kind of high-quality, sustainable investment that Lisbon needs," commented a local market expert. "It demonstrates continued confidence from international investors in the city's long-term potential, particularly in the hospitality and luxury residential sectors." The project's focus on green financing is also seen as a progressive step, aligning with broader EU objectives for sustainable development.
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