A partnership, led by billionaire Nicolas Berggruen, is planning to spend as much as Eur 1 billion or US $1.3 billion on real estate in Portugal. The three partners know that the returns may come later than sooner.
Aside from Berggruen, the partnership includes Jose Luis Pinto Basto and Miguel Pais do Amaral would be targeting office buildings, parking lots and hotels. He said that it may even take ten years before a profit is turned on the properties.
The partners formed Edge Berggruen Investments in order to make the acquisitions. In an interview, Pinto Basto said, "We're not in a hurry. The thing about Nicolas is that he's a marathon runner, not a sprinter."
The prices of the top Portuguese properties should stabilize in 2013 after it declined in value as much as 15% in 2012, according to figures obtained from broker Jones Lang La Salle. The broker has forecast that the Portuguese economy would grow by 2014, the first time in four years.
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