The Greek Real Estate Market in November

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The Greek RE market continued to speed up in November according to all the released information, especially at specific regions and specific types of properties: Hospitality, Logistics and Residential. The frantic search for land where Logistics Centers can be developed in Attica, Thessaloniki, and areas close to significant ports has continued, while the residential market seems to be picking up, followed by a rise in the prices close to 8% in the major cities.

In the hospitality market, mega investments are being announced, the one by Sani/Ikos in Crete dominating the RE news in November, while more mega projects are being prepared, like the one in Gournes, Irakleion (again on Crete).

More specifically, in November:

Logistics Centers

REICS look to purchase more land to develop logistics centers especially in Attica, Thessaloniki and close to major ports. In November, Trastor REIC has entered an initial agreement to acquire logistics center being built in Aspropyrgos, west of Athens. Trastor said it has entered into a binding preliminary share purchase agreement for the acquisition of 100% of the shares of “PILEAS ΚΤIΜΑΤΙΚI SA”, a legal entity owner of a land plot of 39,900 sq.m. in the Aspropyrgos area in Attica. According to the company’s announcement, a contemporary logistics center with a total estimated area of 22,000 sq.m shall be developed on this land plot according to international environmental certification standards. The total consideration for the acquisition shall be based on the net asset value of the company at the time of closing and it will be subject to certain price adjustments as per the terms of the agreement.

Hospitality

Domestic and International Groups look to invest in hotels all over the country, especially on the islands but also on specific parts in the mainland. In November, Sani/Ikos Group confirmed the acquisition of more than 30 plots of land, totaling 200 thousand square meters, on the bay of Kissamos on Crete, to create its first hotel complex under the Ikos Resorts brand on the island. The new five-star hotel will be built on the bay of Kissamos, Chania, at an area a few kilometers west of the city, which the group acquired last February from a construction company. The amount of the transaction was not made public. The total investment on Crete will exceed €125 m, while the company estimates that more than 750 new job positions will be created.

Retail

A landmark building in the heart of Athens has changed hands in November. Athens-based developer Dimand submitted the highest bid for the former Minion department store, at the price of €25 m. The building has remained unexploited for nearly three decades. Having changed ownership multiple times in that period, the property wound up in the portfolio of the now beleaguered and under-supervision Folli-Follie group. The 16,000-square-meter building is included in a rescue plan for accessory maker and retailer Folli Follie, and was ascribed as collateral in order to acquire an intermediate credit line from Arena Investors.

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