The Greek Real Estate Market in August

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August in Greece was all about the wildfires in Attica and Evia; The fires burnt a total of 1 million sq km of forest, many houses were burnt down, as well as businesses: restaurants, hotels, agribusiness. Engineer squads were sent over at Evia and within a few days a financial support mechanism was set up for the individuals and businesses who suffered losses. By submitting a request to a webpage, by the end of the month, they received the first support payment to reconstruct what they lost.

Other than that, August was a slow month, in terms of RE transaction announcements. Prodea Investments announced two investments in sustainable properties, and Trastor REIC enlarged its already sizeable portfolio of logistics centers, by acquiring another land plot in Aspropyrgos, Attica.

At the hospitality sector, new hotels opened on popular islands such as Santorini, while in Rhodes, the development of one of the biggest hospitality projects is about to kick off. The Afantou project, with a twin hospitality investment in the North and South Afantou beaches, with three hotels, a marina, and a golf course.

As all four systemic banks (and servicers) prepare to throw a huge number of properties in the market, Alpha bank is seeking a strategic partner to establish a joint venture in the Greek real estate market. The transaction will be carried out through the bank’s listed real estate arm Alpha Astika Akinita SA, in which the potential partner will take a controlling interest. Alpha Astika Akinita will then turn into a multi-asset real estate investment platform. The selection of the preferred partner is set to take place by the end of 2021.

More specifically, by sector:

Hospitality:

The announcement about the kickoff of the Afatou project has been waited for a long time, 10 years, and, as planned by Hellenic Republic Asset Development Fund, the transaction proceeded during the summer with the deposit of the letter of guarantee by the investor. The investment plan approved by the Ministry of Development concerns one of the three luxury hotels planned to be built in the North and South Afatou beaches.  On another note, Alpha Bank announced that it will provide financing for the execution of the capital investment plan of five hotels of Hotel Investment Partners in Greece, while the luxurius ς Radisson Blu Zaffron Resort opened its gates on Santorini. In Cypurs, the Leptos Group announced the award of the construction works of the first phase of the residential works of the Limassol Blu Marine Development in Limassol, to a consortium between Iacovou Brothers (Constructions) Ltd and Zemco Construction Ltd.

Logistics:

As forementioned, Prodea completed the acquisition of New Metal Expert, which owns a complex of two commercial warehouses in Aspropyrgos, Attica. The warehouses are newly built, and they are used as Storage and Distribution Centers. They meet the modern logistics standards, incorporating energy efficient features more than the minimum regulatory requirements. The price for the acquisition amounted to € 12.5 million. Trastor too, continues to invest in logistics, and acquired a land plot in Aspropyrgos, which is adjacent to existing logistics properties of the Company. Reportedly the company plans to invest €5 m in the development of a new, state-of the-art logistics center, which will carry Leed certification for its low environmental footprint. The company will create a single logistics hub, with a total area of 31.3 thousand sqm.

Offices:

In the office buildings sector, in August Prodea acquired 51% (they already owned 49%) of the company Panterra Development and Real Estate, which develops an office building complex on Syggrou Avenue, Lagoumitzis and Evridamantos Streets in Athens. For the construction Panterra adopted the most current international sustainability practices, aiming at the LEED, Gold level certification. The complex consists of two autonomous office buildings. The construction is expected to take place in December 2021 (building A) and in May 2022 (building B). The total area will amount to 30.9 thousand sqm. Panterra has signed a notarial preliminary agreement to sell building A to Generali Hellas at a price of €34.8 m.

Retail:

Intercontinental International REIC announced in August that it purchased a commercial two-storey basement building with a total area of 4,408.32 sq.m. with a parking lot, on adjacent plots with a total area of 5,663.58 sq.m. in Pikermi, Attica. Sklavenitis super-market is the tenant of the building. The purchase came through a private tender at the price of € 8,086,970.

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