Bank of Portugal announces €192 million acquisition of new HQ

The Bank of Portugal (BoP), which is lead by outgoing governor Mário Centeno, has signed a contract to invest €192 million in its new headquarters at Entrecampos in Lisbon.

According to Observador, the total cost of the project should exceed €235 million.

The value indicated by the newspaper considers an advanced reference by the company Ficope in a technical report for the Bank of Portugal, which evaluates the cost of fit out (finishes and filling) of the 29 thousand square meters that the central bank should occupy at 1.485 euros per square meter, increasing the cost of the future headquarters by €43 million.

According to other real estate market sources heard by the Observer, the finishing costs may be higher and approach €3,000 per square meter, which would raise the cost of this portion of the investment to €87 million (in addition to the €192 million publicly accepted by the Bank of Portugal).

The news source also reports various warnings from the Bank of Portugal’s technical and legal experts regarding the new headquarters, including uncertainty around the completion of the licensing for the new building, and also including the building’s parking subject to an environmental impact evaluation and the potential need to change the authorised use from trade to services.

The investment in Entrecampos was the subject of a promissory contract signed in early May between the Bank of Portugal and Fidelidade, the insurer that owns the land and is responsible for the real estate development on the former fairground site. The final completion of the transaction is scheduled for the end of 2027.

The Bank of Portugal told Observer that the promissory contract safeguards the bank’s interests in the face of the contingencies and risks associated with the licensing of the work.