Real estate: deals worth 2 billion euros in 2023 – the main characters

Market commercial real estate in Greece recorded record growth in 2023and domestic investors were in the lead, and investment reached 2.02 billion euros, an increase of 22% compared to 2022, despite negative sentiment in most European markets, which were affected by expensive loans, high inflation and two wars going on in Europe and the Middle East.

According to Proprius analysis, the largest amount of capital was raised in the office and hospitality sectors – 38.6% of the total or €780 million and 24.7% or €500 million respectively. The industrial real estate/logistics sector saw €300 million in transactions, with a further €425 million in retail real estate.

The hospitality sector recorded a 28% year-on-year decline, largely reflecting a lack of room for price increases, Proprius said. “Commercial real estate transactions in 2023 were larger on average compared to the last five years,” says Niki Simbura, head of Proprius, a real estate advisory firm that represents Cushman & Wakefield in the Greek market.

“The country's growing economy, coupled with strong and ongoing growth in tourism, created a favorable investment climate for domestic investors, who dominated the market in 2023, with some international family offices and private investors making their mark. Most of the activity in 2023 came from for investments in purpose-built real estate or special purpose transactions, compared to 2022, in which AEAP was in the lead.” – she notes.

This year, Greece's return to investment grade will play a major role in attracting foreign investment into the property market, with investment levels expected to be at last year's levels.

Among the largest transactions completed in 2023we can name the following:

Project Skyline

At the beginning of February 2023, Alfa Bank and the Dimand – Premia Properties consortium signed a deal to acquire the Skyline project worth 438 million euros. The portfolio includes 573 properties of various types, including office, commercial, residential, industrial and logistics properties with a total area of ​​approximately 500,000 sq. m. m.

Alpha Bank Group, which controls a 35% stake in the new company developing the properties, will remain the tenant of some of the buildings, while the rest of the portfolio, including the Korai complex in central Athens and the 30,000 sqm former Commercial Bank complex on Sophocleous. m, will either be rebuilt and repositioned for rental on the market, or sold.

Project “Tethys”
In March 2023, Intrum Hellas, acting as transaction coordinator, announced the completion of the sale of a portfolio of 72 hotel properties with a legal value of EUR 254 million (Tethys project) to the consortium SMERemedium Cap / Latonia Enterprises Company Limited – Athanasios Laskaridis family office / WHG Europe Limited – Brown Hotels portfolio.

Tethys was the first industry portfolio of credit receivables sold on the secondary market in Greece, with the main goal of returning hotel companies to financial and operational sustainability.

Transactions of the National Bank of Greece
In 2023, the National Bank and Prodea entered into a deal worth €237 million, in which the former bought from the latter 43 properties that it had sold to AEBP ten years ago and had been renting out since then.

In particular, at the end of June 2023, the first of the sales took place concerning the group's IT center in Gerakas worth 83.25 million euros, and a few days before the end of last year, Prodea transferred 22 properties for a total of 110.5 million euros. The remaining 20 objects are planned to be transferred in the first half of 2024 for a total amount of 43.5 million euros. In addition, the bank acquired the historical building of the Athens Stock Exchange at 10 Sophocleous Street from Papaleikas Group for 67 million euros. In total, the National Bank's investments reached 300 million euros.

Acquisition of Smart Park

Trade Estates and REDS announced the completion of the acquisition of Smart Park. The agreed value of Smart Park for the transaction was 110 million (on a debt-free and cash-free basis) and the acquisition cost of the YALOS MAE shares was 95.8 million euros.

The Smart Park is located in the town of Gyalos, in the municipality of Spata – Artemis, and covers an area of ​​about 91,000 sq. m. The total leasable area is 50,592 sq. m. m, the area of ​​green spaces is about 30,000 sq. m. m, and there are also 1,500 parking spaces. The retail space is 100% leased to the largest retail chains in Greece.

Hotels in Porto Heli

Irish billionaire businessman Paul Richard Coulson has purchased two hotels in Porto Heli for a sum of €50 million through his interested companies. In particular, he acquired the 4-star hotels AKS Porto Heli with 214 rooms and AKS Hinitsa Bay with 220 rooms.

Eurobank purchases

An important investment property at 65 Kifisia Avenue in Maroussi, whose tenant is PwC, was acquired by Eurobank for EUR 74.4 million. The seller was Dimand Real Estate. Office complex with a total area of ​​24,940 sq. m, consisting of two “twin” buildings, is planned to be completed and handed over to the tenant in the first half of 2024.

Source link