Morais Leitão advises Arab Bank on the acquisition of two historic palaces in Lisbon

Morais Leitão advised Arab Bank (Switzerland) Ltd on the group’s first investment in Portugal, through the acquisition from Cerberus Capital Management of 100% of the share capital of the companies owning two 18th-century palaces — Palácio Palmela and Palácio Sobral — to redevelop the former headquarters of Fidelidade into a luxury project of approximately 24,000 sq m, comprising a five-star hotel and serviced apartments.

The transaction also involved Savills Investment Management as asset manager and Quest Capital, which was responsible for managing the development of the project. Financing was provided by Cheyne Capital, a European alternative investment manager with a strong focus on the real estate sector.

The multidisciplinary Morais Leitão team involved in the transaction was led by João Torroaes Valente and included João Fitas, Maria Carolina Gonçalves and Gonçalo R. Rodrigues from the Corporate Real Estate and Tourism team; Elmano Sousa Costa, Carolina Nagy Correia and João Diogo Barbosa from the Banking and Finance team; Raquel Maurício and Inês Dias Cardoso from the Tax team; and Rui Ribeiro Lima and Miguel Arnaud from the Urban Planning team.