360º view from the roof
Major investment opportunity in historic Sao Pedro
A unique opportunity to acquire an interesting boutique shopping centre and residential freehold building in a vibrant and transient area of central Funchal.
The 4-story building is being sold as freehold with all fractions within Arcade Sao Pedro, a prime Funchal city location. The building is located 2 minutes walking to the city centre´s Municipal Gardens and Cathedral area.
The family-owned shopping centre was built in 1971 and has been partly remodelled at various intervals. The total units within the commercial centre comprise of 25 that relate to 13 variable size retail shops within the arcade plus a further 3 roadside retail shops, a popular cafe and a substantial gym, 4 large private offices and 2 rooftop apartments.
The arcade and offices provide regular fixed contractual rental income and is debt free in the condominium accounts. The land footprint of the building is 829 meters.
Potential for a stunning city penthouse apartment and terrace
Due to the excellent location of the building and proximity to central Funchal, the building could well provide a quality investment opportunity for partial conversion to multiple residential apartments.
On the top floor there are 2 apartments which provide an opportunity for conversion into a prime penthouse loft apartment and terrace looking out over the Funchal roofline and Forte do Pico, the harbour, the mountains and to sea, these top floor views are dramatic and completely unique.
There is also a substantial basement area and possibilities exist to extend and enhance the current retail shops. Currently the arcade and building has an old fashioned ´quirky and hip feel´ giving it a great potential as a future renovation project.
Excellent and quiet location within the city
Living in the central location and keeping the existing shopping arcade also offers an interesting and varied lifestyle. Living within the city centre of Funchal there are a vast amount of quality restaurants, cafes, museums, shops and boutiques, various local markets, health centres and the marina.
The entire central area of the city is flat and like all of Madeira, it is a very safe place to live with an extremely low crime rate. This location offers all the main tourist events such as the Flower Festival, The Carnival, Classic Car Show, The Rally, The Christmas Market and the New Year celebrations on the doorstep and rooftop.
The area has very quick access to all of central Funchal and is particularly quiet around the 2 rooftop apartments.
Substantial redevelopments of the immediate historical area
Recently the owners of the Boutique Hotel Castanheiro have purchased land and the surrounding buildings adjacent to the arcade and will extend the current hotel to border the arcade, the plans include a major underground car park directly next to the arcade, this is expected to have a positive economic effect on the area.
The regional Madeira government has also recently announced a series of their own initiated redevelopments starting opposite to the north side entrance, this includes government offices and residential apartments.
As the Historic centre of Sao Pedro is protected, the Funchal authorities have strict rules on the height, character and type of building and renovations permitted.
Buildings or redevelopment are limited to a maximum height below the church spire. It should be noted that the local government is encouraging redevelopment within the historic area around Sao Pedro.
The immediate area of the arcade and building
The immediate area of the arcade and building is the historic area of Sao Pedro, this was one of the first settlements of Funchal with records of residential buildings going back to the 15th century. Directly opposite the arcade and building is the beautiful and charming church of São Pedro that was completed in 1743.
The pretty church is very popular with weddings and baptisms taking place every week, also of factual note is that Cristiano Ronaldo was baptised in the church. Located directly opposite the west entrance of the arcade is a famed and much-loved independent bakery named Felisberta, where the most traditional cakes of Madeira can be enjoyed in the delightful and recently renovated interior.
Near to the southeast side of the arcade is the most important reference hotel of Funchal, Castanheiro Boutique Hotel with 4 stars offers 81 quality rooms, a reference restaurant and bar plus a rooftop pool area for guests.
“A fabulous location for investment, or an interesting everyday retirement overseeing the arcade activities”