Choosing a Real Estate Agency for Protection "first home" is nearing completion

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The international public tender procedure for selecting a company to manage the company is being completed “first” home of a bankrupt debtor with the obligation to rent it out for 12 years and thereby avoid eviction.

It is expected that 10,000-12,000 real estate auctions will be held annually in the next 3-4 years. According to the authorities, 30,000-50,000 properties could potentially end up at auction.

On 6 September 2024, the publication of ministerial decisions is expected, including the final parameters on the basis of which the public international tender will be carried out, which will be developed following the completion of the competitive dialogue conducted by the General Secretariat for Private Debt Management with interested investors.

The intended interested parties, who will be invited to submit binding offers to select the preferred investor, are Fortress, Bain, Christofferson (CRC) and Kaican Hellas in partnership with Beaumont. Binding proposals are expected to be submitted in early October and will take about a month and a half to evaluate.

Ministerial decisions will determine all aspects of the company's operations, from the monthly rent that the debtor must pay, the possibility of buying out the property, to the costs of legalizing and maintaining the property. These are the pressing issues that investors have been discussing with ΓΓΔΙΧ, since the initial request to increase the state guarantees accompanying the operator was rejected by the Ministry of Finance.

However, in December last year, based on the law ratified by parliament, the Ministry of Finance adopted changes – incentives for the participation of private investors (funds) in the creation and operation of the Real Estate Agency, such as:

• 30% discount on the market value of the property or the first offer price when the institution purchases the property at auction. The debtor will also use this discount when he wants to buy the property.
• Alignment of the tax regime of the institution with the favourable regime applied to AEAP. That is, exemption from any taxes, special charges, stamp duties, duties, royalties or any other charges in favor of the state and third parties, with the exception of income tax on capital gains arising from the contribution and transfer of real estate.
• Exemption of a legal entity from the obligation to purchase real estate if, as a result of an expert inspection, violations are discovered that will lead to a complete lack of legalization.

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