Greek property development company Dimand Real Estate and one of the biggest investment groups in the world, HIG Capital, have reached a significant funding agreement. The American group that manages funds of $35 billion will finance the next generation of Dimand’s property developments with an emphasis on the office and holiday accommodation markets.
Sources say the deal provides for HIG’s European property arm, HIG Europe Realty, to supply an open line of credit of 150 million euros with which the Greek company will be able to strengthen its cash flow considerably as it prepares to participate in major new development projects.
Using some loan leveraging too, Dimand is now able to manage new projects of more than 300 million euros. There is also the prospect of some further funding.
“This agreement will supply us with very important liquidity while allowing us to have speed in decision making and flexibility so as to proceed to the investments that interest us,” Dimand chief executive Dimitris Andriopoulos told Kathimerini. He added that among the projects this deal may finance are works the company will seek to secure at the Elliniko plot in southern Athens or at Gournes, near Iraklio on Crete.