Marfin Investment Group (MIG) is returning to the forefront as a “thoroughbred” investment company and holding company, as stated in its charter, with zero debt, at least for now.

Following completion in early 2023 of an agreement to swap the shares of the shipping company Attica Group for its 440 million loan obligations with STRIX Holdings (a 100% subsidiary of Piraeus Bank), MIG will retain only 100% of Robne Kuce Belgrade (RKB), one of largest real estate management companies in Serbia. The latter’s real estate portfolio was valued at $200 million by American Appraisal. This assessment concerns 28 shopping centers throughout Serbia, as well as vacant land belonging to it.

In addition, the debt of the Serbian company in question was recently restructured, which now, after writing off interest in the amount of 5 million, is 89 million. MIG management intends to use these lands for commercial or residential development, which will be implemented within the next two years. Already last year, MIG, in addition to restructuring its loans in Serbia and zeroing out its debts to Piraeus, acquired 100% of the share capital of its Serbian subsidiary, exchanging three properties with 17% owned by a minority shareholder, while also establishing direct control over Robne Kuce Beograd through the acquisition of the portfolio of MIG Real Estate Serbia, a 100% subsidiary. The goal is to achieve more flexibility and simplify the internal structure of the group.

Stock exchanges estimate that MIG’s equity value will exceed $100 million in six months.

Robne Kuce Beograd is expected to end the 2022 financial year with a turnover of 7 million euros and an EBITDA profit of 2.9 million, while maintaining cash reserves of 5.3 million.

The business plan provides for a sharp improvement in these indicators from next year. The real estate portfolio in Serbia is one of the three pillars of the company’s medium-term business plan. The second involves raising capital both through the company’s organic profitability and through the sale of two or three inefficient shopping centers. With these funds and MIG’s own cash reserves, which are estimated to be in the range of 8-10 million by mid-2023, it will be able to cover the same fundraising participation that will enable it to develop its second core business. : to continue investing in listed or non-listed, Greek and other companies, both in stocks and bonds, in order to generate capital gains. In other words, operate as an investment company and possibly with further funding, such as bond lending, to expand your portfolio and with it your reputation.

A goodwill that could help rebuild value from MIG’s shareholders, who “supported the company over the years through very difficult times,” sources in the listed company’s management characteristically mention to K. Completion of the agreement with STRIX Holdings will take place immediately after the general meeting of the listed company in early 2023. And among the issues that will be discussed, rebranding cannot be ruled out, as reported by sources in the market. Based on all of the above data, market circles believe that MIG’s equity value will exceed $100 million over the six-month horizon, more than double its current market value. However, they add that there are risks associated with both the macro environment and the execution of the business plan.

In any case, the next day is clearly more carefree for the now-borrowed MIG than just two years ago, when its main shareholder, Piraeus Bank (32%), had to treat it like a troubled borrower with debts of 1.4 billion euros. .