Interview: 8 questions for Filipe Azevedo

Lucios' CEO, that already bills 60% through urban rehabilitation, draws a picture of the sector, from the standpoint of a entrepeneur.

As an entrepeneur, how do you describe the situation in the urban rehabilitation market?
There are still few opportunities, although one can notice an increase in the dinamics in comparison to the former years. There is a greater awareness in the agents about the need to rehabilitate the properties that are in poor conditions and that this will be a way forward. Although it is still only a part of what the country needs.

The investment comes more from the private side, or rather, from the public side?
With one or two exceptions, of urban rehabilitation public companies - like in Porto and Coimbra - it's essentially the private initiative that moves the market.

Is a burocracy an obstacle for investments?
There are some improvements, even though when rehabilitation is done in urban centers, especially in historic areas, there are still many burocratic issues to solve and many costs associated with these processes.

Do we possess the human abilities, outside from construction, with enough quality to produce a strong added-value in the sector?
There is some older skilled labour, that has been in the sector for several years.. What happens now is that some companies that produce materials, architects, etc.., are preparing with a more appropriate training in rehabilitation and, also, adapting materials for these processes.

Has the financial system helped to finance this market in a special way?
I believe that in this time, the difficulties are transversal to all activities. What exists and has some implication in terms of results is tax exemption - namely VAT - and some real estate funds that provide some advantages. But, where banks are concerned, there is nothing special in terms of incentives.

Can you find alternatives?
One alternative is the Jessica program (130 million euros from the European Investment Bank), a fund dedicated to urban rehabilitation, which may have an important role in the market by being the first.

Lucios will continue to bet in this market?
The bet is to continue, it already has about seven or eight years. We invested a lot in this sector and had to adapt our technical staff and our means to this paradigm. Now we will continue and want to be a reference in rehabilitation.

What is the weight of urban rehabilitation in the income of ucios?
This year it will be around 60% of the total of 54 million euros.

Source: Sol