The consortium’s first project will be the completion of renovations at the old Papastratos unit in Piraeus.
The consortium set up by property development company Dimand and the European Bank for Reconstruction and Development (EBRD) is planning a 250-300-million-euro investment program within the next three years.
Its aim will be the creation of projects in various areas of the property market, focusing on office buildings, mixed-use properties, city hotels and student accommodation.
This is not only the EBRD’s first investment in Greece’s property sector, but also its first outside the credit sector.
Sources say that the new consortium’s share capital will be 61 million euros, with Dimand contributing 40 million, via its subsidiary Arcela Investments Ltd, and the EBRD 21 million, as the lender will hold a 35 percent stake. However, Dimand chief executive Dimitris Andriopoulos says there is also the option of up to another 61 million in additional capital, plus the possibility of another 60 percent in leveraging.
The first project EBRD will be involved in is the implementation of the second and third renovation stages of the Papastratos tobacco company’s former properties in Piraeus, costing 14 million euros. Andriopoulos says Grivalia Properties has also agreed to participate, after its successful role in the first stage.