Savills Investment Management (Savills IM), the international real estate investment manager, has added two palaces in central Lisbon’s Chiado neighbourhood to its asset management portfolio. The property – which spans more than 24,000 square metres – is located at Largo do Calhariz, 30, and takes Savills IM’s assets under management in Portugal to over €200 million.
Savills IM is to assume asset management responsibilities on behalf of Geneva-based Arab Bank (Switzerland) Ltd., the new owner of the asset. Redevelopment works centre on a change of use to reposition the building into a five-star hotel featuring both hotel rooms and branded residences, overseen by development manager Quest Capital.
The property consists of two connected buildings, Palmela Palace and Sobral Palace, with three external patios and stunning rooftop views of the Tagus river and the city of Lisbon. The two buildings were refurbished in 1997, preserving their heritage façades, which will facilitate future interventions.
Fernando Ramírez de Haro, Managing Director of Savills Investment Management for Spain and Portugal, said:
“We are delighted with addition of such an iconic building to take our portfolio of assets under management in Portugal to over €200 million. This transaction evidences our strategic commitment to Portugal, a market with huge potential that attracts visitors from all over the world thanks to its lifestyle, pleasant climate and famous gastronomy. This robust, sustained demand has opened up attractive opportunities for real estate asset repositioning. Effective management of such a landmark building to satisfy the changing expectations of visitors, investors and regulators allows us to offer long-term value for all stakeholders, including the people of Lisbon.”
The asset will target the highest LEED certifications, demonstrating a clear commitment to sustainable design and long-term environmental performance. Construction and development is expected to take three years.
A growing portfolio in Portugal
In addition to this transaction, in December 2025 Savills IM completed the acquisition of two supermarkets in Vila Verde (Braga) and Montemor-o-Novo (Évora), both offering excellent visibility, strategic locations and good transport links. Construction was completed in December 2020 and March 2021 respectively and the two assets have long-term leases in place with Continente. Previously, in late 2024, Savills IM bought four Portuguese supermarkets for its European Food Retail Strategy, located in Lourel, Leça do Balio, Loulé and Mafra and also leased to Continente.
