The Greek Real Estate Market in December

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December’s RE market in Greece was marked by landmark transactions such as the one in Thessaloniki, of the Florida 1 Commercial Park, and the purchase of the Kodak building in Athens. Meanwhile, another landmark, literally this time, the Hilton hotel in Athens, announced that it is rebranding, will be named Conrad and will seal its doors for 3 years, while it transforms into a very luxurious hybrid hospitality/residential unit, with restaurants, a residents’ club and of course the traditional hotel part.

The Elliniko projects continues to evolve and in December, Lamda Development announced it found a partner to build the Vouliagmeni tower.

The real challenge though has been in the logistics’ market once again. The Aspropyros area is developing into a huge logistics centre, and REICs are competing for large land plots where they can develop logistics’ centres to lease later. Newspaper Kathimerini reports that real estate investment companies are currently developing over 90,000 square meters of logistics facilities at Aspropyrgos, west of Athens, investing funds totaling 40-50 million euros. Companies such as BriQ Properties, Prodea Investments, Trastor and recently Noval (of the Viohalco group) have been particularly active, while HIG started developing its logistics mega center, also in Aspropyrgos.

On another note, the Hellenic Republic Asset Development Fund plans to gradually sell two major logistics parks, in Attica and Thessaloniki. The land in Thessaloniki is at the Sindos are, and it is a former military camp. The land in Attica it at Fyli, near Attiki ring road. Both land plots have an area of approximately 600 thousand sqm.

In the residential sector, units have had their share in December, with the purchase of serviced apartments by Premia, which announce that it aims to own 1000 serviced apartments within the next couple of year. New York times report that there is a huge interest by people outside Greece who buy frantically (sic) expensive properties, especially on the island. A summer home on Tinos Island was sold, according to the story, for €1.8 m.

More specifically, in December, according to announcements and news stories:

Residential

At the residential sector, Premia Properties acquired serviced apartments in Agios Dionysis, Pireaus, Attica, building its way to the goal of 1000 serviced apartments by 2025. The recently purchased building consists of 58 fully equipped apartments, which are currently leased to Teleperformance Hellas by 2033.

Office

Offices never cease to keep the investors’ interest high. In December, Lamda Development and Brook Lane Capital announced they will purchase a plot from Elliniko SA and build a mixed-use tower near the Vouliagmeni metro station. The companies will then proceed with the construction of the multi-storey tower. The premises will be developed as for offices and hotels at an investment of about €200 m. The works are expected to start in 2023 and to be completed in 2025.

Meanwhile, Noval Property announced the acquisition of a plot of land on the former Kodak property, in Maroussi. It plans to develop a modern complex of green office buildings with a total built-up area of approximately 49,000 sq.m. which will adopt the principles of sustainable development and bioclimatic design and is expected to receive LEED certification. The transaction price amounted to €28.6 m.

On another note, Premia Properties acquired a property in Peania, Attica, where it will develop a biotechnology park. The property of 23 sq.km, and currently here are office and warehouse buildings of 4,180 sq.m. which will be reconstructed and reused, while new buildings with a total area of 16,000 sqm. will be developed. The development will last about 2 years, and the annualized rental income is projected to rise from the second quarter of 2022 to 1.5 million and gradually until the completion of the investment, end of 2023, will be 3.5 million.

Lastly in the office sector, Trastor REIC bought a 20% indivisible percentage of the ownership of the Kronos Business Center building, in Maroussi, Attica, at the price of 2.35 million. The company already owned 80%.

Hotel

In the hospitality sector, the Naxos Resort Beach Hotel in Agios Georgios, Naxos, was acquired by Attica Blue Hospitality, a subsidiary of Attica Group, for €6.5 m. The hotel complex is built on a total area of ​​8.166,92 sqm, has 88 rooms with the possibility of building an additional 1,300 sq.m. and acquisition is part of the strategic planning of Attica Group. Rumour has it that soon there will also be a mega-deal for the golf premises at the Afantou beach in Rhodes.

Finally, in the sector of commercial stores BriQ Properties REIC sold a store, with a total area of ​​168.40 sq.m., on 283 Kifissias Avenue, in Kifissia for a price of 1,023,000 euros.

One of the biggest transactions of the month was made by Trade Estates REIC, a company of the Fourlis Group, which purchased the largest commercial park in Greece, named FLORIDA 1. The Commercial Park, in Thessaloniki. The park covers an area of ​​132,000 sqm, with commercial areas of 31,407 sq.m., leased 100% to twelve of the largest retail companies in Greece.

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