Major property deal reached
The largest single agreement in the Greek real estate market to date, both in terms of value and the number of properties, has been completed, involving 573 assets worth 430-440 million euros.
This is Alpha Bank’s Project Skyline, which provides for the transfer and utilization of the bank’s properties by an independent entity, as the relevant agreement was signed between the bank, Dimand Real Estate and Premia Properties, as well as the European Bank for Reconstruction and Development.
Alpha will retain a 35% stake in the new body to which the properties will be transferred (Skyline Real Estate Single Member), while the remaining 65% will be acquired by P&E Investments. Dimand will (initially) own 75% of the said company and Premia Properties REIC 25%. At a later stage, sources indicate that Dimand’s stake will reach 52%, as the EBRD will also participate with 23%. Alpha will also bankroll Skyline through long-term financing of up to €240 million.
The transfer of the above shares is expected to take place within the second quarter of 2023. A total area of 500,000 square meters will be transferred, including offices, commercial properties, residences and areas for industrial use and logistics.
The plan for utilizing the real estate portfolio is already clear. Information indicates that out of the 573 properties that will be acquired, only 75 will remain with the company. The rest are expected to be sold gradually, with the expected revenue estimated at €240 million. These funds will finance new investments in acquiring third-party properties, which will increase the portfolio and the income generated. Also, the proceeds from the sales will be used for renovation work on the properties that will remain with the new company in order to maximize their goodwill and income.
Dimand Real Estate is expected to play a decisive role in the development of the new company that will be created, which ensures an important objective of new projects to be developed. The reason is the package to be transferred to the new investment entity includes dozens of buildings needing renovation, change of use and/or change of tenant.
