Wednesday, June 3, 2020

The Greek Real Estate Market in April

Georgios Tomaras, Country Manager Greece & Cyprus At Aura REE.

As expected, the Greek Real Estate market kept slowing down in April as the Covid-19 pandemic was reaching it peak worldwide. Investors put their planned transactions on hold until there is clearer picture of what the future months hold and what will be the impact on the economies and on the RE markets. The good results Greece achieved dealing with the pandemic has, according to news reports ceased the interest of the investors who are now looking to invest in Greece, but this remains to be verified. The Greek government has eased the burden for the retail stores and cafes/restaurants with a rent-cut, a measure applied to all companies that have ceased operations under a state mandate. All property owners who bear the temporary reduction of rent are able to suspend the payment of tax obligations and instalments of tax debt settlements for 4 months or pay a 25% discount on the above obligations.

In terms of deals, two major ones have been concluded in April. Here they are:

Hospitality

Belterra Investments and Techniki Olympiaki sealed the deal for the Porto Carras complex buyout. The two sides came to an agreement according to which Belterra Investments will pay €205 m. 53 million of this amount will be allocated to repay the hotel’s obligations. The transfer will be preceded by full due diligence. The seller announced the upcoming deal to the Greek Stock Exchange Market. 

Alternative Assets

Ellaktor Group took over the marina of Alimos. The Alimos Marina, one of the largest marinas in Greece with a 1000 permanent positions, was granted to a busidiary of Ellaktor Group, Aktor Concessions, for 40 years with the right to extend for another 10 years.  In the next four months after the concession agreement is signed, the financial transfer of the concession must be carried out. Aktor Concessions won the tender of HRDH offering €57.5 m. The existing port infrastructure will be modernized, so that the Alimos Marina can offer at least 1,200 berths, serving boats up to 45 meters in size. The Ellaktor Group in recent months has secured €670 m through the successful publication of two international bond issues.

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