Corum Portugal Director Calls for EU Investment Harmonization, Details Fund Performance

In a significant statement for Portugal's investment community, Marcelo Capitão, the director of Corum Portugal, has emphasized the need for greater harmonization of savings and investment regulations across the European Union. Speaking from Corum's perspective as a manager of successful real estate funds active in Portugal, he argued that a true single market is essential for channeling European savings into productive local assets, including commercial property. This call to action occurs as Corum's funds report impressive returns, presenting a strong case for real estate investment vehicles as a viable alternative to historically low-yield bank deposits.

Operating from its office in Porto Salvo, a key business hub in the Greater Lisbon area, Corum Portugal manages a portfolio of large-scale commercial properties, such as retail centers, with a strategy focused on securing reliable, long-term tenants. Capitão highlighted that this approach has led to an occupancy rate exceeding 95%, ensuring consistent monthly dividends for its 140,000+ European shareholders. He stressed that for the EU to remain competitive, it must encourage its citizens to invest within the bloc, rather than seeing capital flow to US markets. This perspective is critical for anyone analyzing long-term property market insights in Portugal.

The director's comments align with the European Commission's ongoing efforts to build a Capital Markets Union, a project aimed at deepening and integrating the EU's capital markets. For foreign investors, the implications are profound. A more harmonized regulatory and tax framework would simplify cross-border transactions, reduce administrative friction, and potentially unlock greater investment flows into markets like Portugal, which offer attractive yields compared to other Western European nations.

Market Implications for Investors

Marcelo Capitão's advocacy for regulatory alignment is more than just a policy discussion; it carries significant weight for investors. A harmonized EU investment framework would likely reduce the complexities that foreign investors often face, particularly concerning taxation and legal compliance. This could make Portuguese real estate assets even more attractive by lowering transactional barriers. For a deeper dive into the current legal landscape, our guide on legal issues is an essential resource.

Furthermore, the strong performance of Corum's funds serves as a powerful market signal. With a 10-year IRR of 6.74% for its Corum Origin fund, the firm demonstrates that professionally managed, diversified commercial real estate portfolios can significantly outperform traditional savings products. This is particularly relevant in a persistent low-interest-rate environment. It validates a model where investors can gain exposure to the upside of the real estate market without the complexities of direct ownership, such as tenant management and property maintenance.

The accessibility of these funds, with minimum investments starting as low as €195, also democratizes access to commercial real estate. This allows smaller, retail investors—both domestic and foreign—to participate in a market segment typically dominated by institutional capital. The monthly dividend structure provides a steady income stream, an attractive feature for those seeking regular cash flow from their investments.

Corum's Strategic Position in Portugal

With a global portfolio of €9.5 billion under management, Corum's commitment to the Portuguese market is a strong vote of confidence. The firm's ownership of 20 properties and its statement that it is "permanently analyzing the market" confirm that Portugal is a key component of its European strategy. This is not a passive investment; it is an active, on-the-ground presence aimed at identifying and capitalizing on opportunities.

Corum's investment strategy is noteworthy for its discipline and diversification. By being "sector-agnostic" and focusing on the fundamentals—price, profitability, and long-term return guarantees—the firm avoids chasing trends and instead builds a resilient portfolio. Its recent acquisitions in France, Ireland, and the UK, totaling €228 million, showcase its capacity to deploy capital effectively across different markets, reducing dependency on any single economy and enhancing overall fund stability.

The Broader Portuguese Investment Context

The interview with Marcelo Capitão sheds light on a fundamental characteristic of the Portuguese domestic market: a deep-seated conservatism and what he terms "financial illiteracy." This has historically led savers to favor the perceived safety of bank deposits over potentially higher-yielding investments. However, this landscape is gradually changing, influenced by several key factors:

• Sustained Low-Interest Rates: With returns on traditional savings near zero, even risk-averse savers are compelled to explore alternatives to preserve and grow their capital.
• Cultural Affinity for Real Estate: The Portuguese have a strong cultural connection to property as a store of value. Funds that invest in tangible brick-and-mortar assets are therefore an intuitive and trusted concept.
• Success of Alternative Models: The consistent, transparent performance of funds like Corum's provides a compelling track record that helps build trust and overcome initial skepticism.
• Increased Financial Information: While illiteracy remains a challenge, access to information and a growing ecosystem of financial advisors are empowering investors to make more informed decisions.

This environment creates a significant opportunity for investment products that can bridge the gap between the safety of savings and the returns of the market. For foreign investors, this domestic shift is important as it contributes to a more dynamic and liquid local investment scene. Navigating the financial aspects requires expertise, and consulting with English-speaking accountants is a recommended step for any serious investor.

Investment Considerations for Foreign Buyers

For international investors, the key takeaway from Capitão's analysis is the validation of Portugal's commercial real estate market through diversified, professionally managed funds. These vehicles offer a practical and efficient entry point, mitigating many of the risks and complexities associated with direct property acquisition. The ability to invest a smaller quantum of capital into a portfolio of assets is a powerful tool for diversification.

Moreover, the ongoing push for EU-wide regulatory harmonization is a critical long-term trend to monitor. Should these efforts succeed, the reduction in tax and administrative barriers would further enhance Portugal's appeal. It reinforces the narrative of Portugal as a stable and integrated member of the Eurozone, offering a secure environment for capital deployment. Investors should consider how such funds fit within a broader strategy, as outlined in our investment and strategy guides.

Finally, the acknowledgment of challenges like financial illiteracy and conservatism is a sign of a maturing market. Recognizing these issues is the first step toward addressing them, and the success of firms like Corum is actively contributing to this educational process. This evolution points towards a more sophisticated and resilient domestic investor base in the future, which ultimately benefits the entire market ecosystem.

Future Outlook

The insights provided by Marcelo Capitão suggest a positive and evolving future for Portugal's investment market. The shift from traditional savings towards more dynamic investment products like real estate funds is a healthy development that fosters capital formation and market liquidity. While challenges remain, the trajectory is clearly one of increasing sophistication and integration with the broader European market.

As regulatory barriers fall and investor education improves, Portugal is well-positioned to attract a greater share of both domestic and international capital. The resilience and profitability of its commercial real estate sector, as demonstrated by the performance of Corum's funds, provide a solid foundation for this growth. For expert guidance on navigating the opportunities in the Portuguese real estate market, contact realestate-lisbon.com.