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The Greek Real Estate Market in September

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Transactions of hotel facilities dominated the RE transactions news in October. Meanwhile, office buildings have also changed hands, while auctions by servicers are put at risk, after a supreme court decision.

More specifically, two major hotel units were announced to pass to a different owner. The Elatos Resort in the popular winter destination of Arachova, and the Apamema hotel on Mykonos Island. Both facilities are under or will go through a renovation before opening again.

The search for quality offices in big cities, especially Athens and Thessaloniki continues, and in October Noval Property acquired a building on Kifissias Avenue at the price of EUR 10.96 million. Noval plans to reconstruct the property into a modern, green, and smart office building. In a smaller transaction, Trastor REIC sold an office building in Chalandri for a total price of €2,650,000.

At the NPL and REO front, Piraeus Bank and Resolute Hellas entered a Real Estate Management Servicing Agreement. According to the agreement Resolute will provide property management and valuation services, as well as asset management of owner-occupied and non-main properties of Piraeus Bank in Greece. In Cyprus AstroBank acquired QQuant Master Servicer.

Meanwhile, a decision by the Supreme Court puts at risk auctions held by Servicers. Until the case is resolved by another Supreme Court decision (estimated to be announced at Fall 2023), there will be a significant problem in the business plans of Servicers which are already under pressure to achieve the goals and by extension to Hercules guarantees if the revenues are not achieved.

More specifically, regarding transactions, by sector:

Hospitality:

Two trasnsactions were announced in October. The one of Laskaridis family that acquired the Elatos Resort in Arachova Elatos resort & Health Club, and the one of Intrakat that the Apanema Hotel in Mykonos.

Regarding the first transaction, one of LAkaridis’ group companies acquired the resort, which is located near Arachova a location that attracts winter tourism. Reportedly the price was considerably lower than the amount initially requested by the sellers and the negotiations lasted for many months. Elatos was owned by a company of shipowners Kerchikov, Hatzielethriadis and Karastamati, who decided to renovate and sell it. The complex ceased operations last March and will reopen after the renovation work is completed.

On the other hand, Intrakat acquired the Apanema Hotel in Mykonos, through the acquisition of 100% of the shares of its owner company for a total price of €10.6 m.

Offices:

The major transaction in October was the one by Noval Property which acquired an office building on Kifissias Avenue. Noval plans to reconstruct the building into a modern, green, and smart office building, which will incorporate the principles of bioclimatic design and aim for LEED certification. The value of the transaction amounted to €10.96 m. In a smaller transaction, Trastor REIC sold offices in Chalandri for a total price of €2.65 m.

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