Government to Concession 14 State Properties for Development, Including Trafaria Barracks and Miguel Bombarda Hospital
The Portuguese government, led by the Minister of Infrastructure and Housing, Miguel Pinto Luz, announced on Thursday a significant plan to mobilize state-owned real estate assets. The initiative involves the direct sale of nine public buildings and the concession of fourteen plots of land for development under Public-Private Partnerships (PPPs). This move is part of the government's strategy to increase the housing supply and repurpose underutilized state property. The announcement was made during a ceremony in Lisbon formalizing a financing agreement with the European Investment Bank (BEI).
Minister Miguel Pinto Luz detailed that the government has approved a new instrument for managing public assets through PPPs. Under this model, fourteen properties will be made available for long-term concession to private developers. A significant portion of these assets are located in the Lisbon metropolitan area, with seven properties in Lisbon, two in Amadora, one in Almada, and one in Oeiras. The list also includes properties in Porto, Albufeira, and Faro. According to reports from Jornal de Negócios, one of the most notable properties to be concessioned is the Quartel da Trafaria in Almada, a large former military barracks with significant development potential.
Other key assets in the Lisbon area slated for concession include land at Quinta da Alfarrobeira, the expansive grounds of the former Hospital Miguel Bombarda, a building at Av. Elias Garcia, land at the former Campo das Salésias, and the large complex of the former Manutenção Militar Norte on Rua do Grilo. These properties represent some of the largest and most strategically located public land parcels available for development in the capital, offering opportunities for creating new residential neighborhoods, commercial spaces, and public amenities. The concession model allows the state to retain ownership while leveraging private sector investment and expertise to develop the sites.
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In a parallel initiative, the government will proceed with the outright sale (alienation) of ten other public buildings via public auction. The plan is to have these properties ready for sale by the summer of 2026. This list includes several high-profile and 'emblematic' buildings in Lisbon, such as the former headquarters of the Presidency of the Council of Ministers on Rua Professor Gomes Teixeira, the building of the General Secretariat of the Economy on Avenida da República, a former Ministry of Education building on Avenida 24 de Julho, and other significant administrative buildings on Avenida Duque D’Ávila, Avenida Visconde de Valmor, Avenida João Crisóstomo, and Praça de Alvalade. The sale of these centrally located buildings is expected to attract significant interest from investors for conversion into residential, hospitality, or commercial uses.
The minister emphasized that this strategy aims to quickly bring more property to the market to help address Portugal's housing shortage. The involvement of the European Investment Bank suggests a well-structured financial framework to support these development initiatives. This large-scale mobilization of public assets is one of the most significant real estate development opportunities announced in Portugal in recent years and is expected to have a major impact on the property markets in Lisbon and the other included municipalities.
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