Old buildings in the center of Athens will be made "green"

Upgrading is expected in the near future less than 100 thousand sq. m of old buildings in the center of Athens and other areas of Attica, in terms of energy efficiency and functionality.

In some cases, the purpose of buildings will be changed, for example, from office to hotelto maximize the added value from the intervention. It is this conversion of old and often depreciated properties into modern, energy-efficient and low-emission structures that the industry sees as “the future of real estate in Greece”. The aging and energy-intensive building stock of the Attica Basin needs to be modernized and transitioned into the 21st century as it is the most sustainable and environmentally friendly solution for the city’s future.

Emission reduction
“First of all, the energy and operational modernization of the old building, according to the measurements carried out by the National Technical University of Athens, ensures a reduction in carbon dioxide emissions of at least 50% compared to the current situation. At the same time, especially if the project involves a change use of the building, it is being structurally strengthened to meet current seismic regulations, so the resulting building is essentially state-of-the-art with another 50 years of life ahead of it, capable of withstanding both an earthquake and rising temperatures due to climate change,” explains Dimitris Andriopoulos, Managing Director of Dimand Real Estate. Of course, such events not only modernize buildings, but also provide a significant increase in capital for their owners and investors – at least 30%, taking into account the funds spent on reconstruction and energy modernization.

The construction company GP CONSTRUCTION has been providing the following services since 2007:

• design and 3D animation/visualization,
• passing and obtaining a construction license,
• turnkey construction,
• issuance of an electronic certificate of the property,
• settlement of illegal constructions in accordance with law no. 4495/17,
• renovation of turnkey real estate,
• examination-control of design and construction works.

+30-210- 72-72-752
https://gpconstructions.gr

“Green” offices
“In a few years, all old buildings in the center of Athens and other areas of Attica will no longer be considered investment attractive, since they will be able to attract not high-ranking and large users / tenants, but only small and medium-sized businesses. Large companies will choose to place exclusively “green” buildings, which means the need for an extensive program of energy and operational modernization, at least in those facilities where this is possible,” says Mr. Aris Karitinos, Managing Director of Prodea Investments SA.

Prodea already has experience in this regard, having recently completed an energy upgrade of a 5,500 sq. m office building. m on Sigro Avenue, 44, next to the Pillars of Olympian Zeus in the center of Athens. The building, which is over 50 years old, was purchased in 2019 for 5.9 million euros. A further €8 million has been invested to convert it into a sustainable office building currently leased by the KPMG group. Today, the market value of this property is 20 million euros, which means that Prodea recorded a 53% capital gain on the purchase price and investments made.

According to Mr. Karytinos, the company is embarking on two more investments in the energy modernization of existing facilities in its portfolio. “In total, we are upgrading 15,000 sq. m. The first and largest facility of 11,500 sq. m is our vacant office building in Kalithea, which was previously used by the National Bank of Greece. The second project is the modernization of an office building with an area of ​​3,500 sq. . m in Marousi, which is rented out to various users,” says Mr. Karytinos. In the near future, large companies will choose exclusively “green” buildings for their location, and only small and medium-sized enterprises will be located in the old ones in the city center.”

Recovery Fund
According to Karytinos, the debt capital of the Recovery Fund, which finances such activities, represents an important opportunity for real estate companies to carry out energy retrofits of existing properties in their portfolio. “In a high interest rate environment, the low cost of money offered by the Recovery Fund serves as a catalyst to accelerate energy retrofitting in buildings,” he concludes.

“Dimand” also plans projects for the modernization of buildings with a total area of ​​more than 50,000 square meters. m only in the center of Athens, both for its own facilities and for facilities that will be included in the Project Skyline company, where Alfa Bank, Premia Properties and soon the EBRD will also participate as shareholders. The most important facility to be modernized, in terms of energy consumption combined with the diversification of its use, is a building complex with a total area of ​​25,000 sq. m. m, located at the intersection of Sophocleous and Aeolou streets. This is an object of the Alfa-Bank group (formerly Emporiki-Bank), which will be included in the Skyline project in the near future. In addition to energy modernization, it is also planned to re-equip part of the building into apartments.

“Dimand” is doing similar work with respect to an autonomous office building with an area of ​​3,000 sq. m. m, which he rents from the Tositsa fund. The building, located at the intersection of Lykourgos and Apellou streets, is planned to be converted into a multifunctional facility, mainly for residential premises. Recall that the company has already begun work on a complete redevelopment and energy modernization of the complex of former Minion buildings on Patision Avenue, where retail, office and residential premises are also planned.

“Lifting” for new buildings
It should be noted that in addition to the buildings in the center of Athens, which are de facto in need of modernization, significant interventions, especially in terms of energy consumption, are also required today in office buildings built in the 1990s and 2000s. For example, Trastor has initiated energy retrofit procedures for two of its buildings, which are more modern but still not up to date. The first one is located at Vas. Piraeus 94 to be released. Work on energy modernization will begin towards the end of the year. Another facility where energy modernization will begin will be an office building with an area of ​​14,000 square meters. m, which Trastor acquired last year for 27 million euros. This office building is located in Marousi. The building is currently being leased by Bayern and Fourli Group, who will leave by the end of the year.

The energy upgrade of the existing office building in Marusi, acquired at the end of 2022, is also being carried out by Noval, part of the Biochalco group. We are talking about an object with an area of ​​6636 sq. m, located at 199 Kifisias Street. The facility was owned by HELLENiQ ENERGY Holdings and purchased on a tender basis at a price of 11 million euros. Noval plans to refurbish the facility and upgrade it from an energy standpoint to a state-of-the-art LEED-certified bioclimatic building.

In addition to the major players in the sector, other companies are starting similar projects. For example, this week it became known that an office building built in 1959 with an area of ​​​​5 thousand square meters. m will be converted into a four-star “green” hotel. This is the first investment of the first Greek investment fund EuSIF in the Greek real estate market, which is managed by Sirec Energy. The cost of the transaction is estimated at 25 million euros.

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