BUSINESS

Haragionis to be bailed out by Fortress

NIKOS ROUSSANOGLOU

Haragionis group owner Thodoris Haragionis

TAGS: Business

The completion of the agreement between property development group Haragionis and investment company Fortress Group is close, Kathimerini understands, with Fortress set to acquire the Greek company’s debt.

Fortress will become a strategic investor in Haragionis following the agreement and in cooperation with the company’s management it is expected to launch an extensive restructuring plan that will also include the sale of assets, so as to service part of the debt, and the development of new properties funded by Fortress.

This deal has been in the works for over two years, due to its complexity and the attitude of banks to such moves until recently. In this case, Fortress will buy out Haragionis’ debt to Piraeus Bank amounting to 90 million euros, although the final price is not yet known, and will certainly be somewhat lower.

According to the business plan drafted with Haragionis, Fortress expects certain yields from this investment. After the debt to banks is bought out, the management of Haragionis will be able to focus on developing its property portfolio. It has already completed the restructuring of its other dues, to Eurobank and Alpha Bank, which add up to another 90 million euros.

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