Access to your funds Recovery Fund sought after by real estate investment firms (REITs) to finance their development investment plans on much more favorable terms. real estatebut also the energy modernization of their existing portfolio.

According to the information, hundreds of millions of euros worth of fundraising applications have been submitted or will be submitted during this period by almost all companies in the sector.

Apart from the obvious benefit of getting cheap loans, the move is also part of a more general strategy implemented by AEEAP during this period to limit the impact of the sharp increase in interest rates that actually affected their investment planning. but also the rise in the cost of materials, which led to an increase in construction costs.

“We are currently focusing on projects that have already started construction, especially those that we are co-investing in cooperation with Dimand, such as the Piraeus Tower and the Thessaloniki office complex.

At the same time, launching new projects in private ownership is no longer our priority. However, we are promoting their licensed maturity,” This was reported to the correspondent of “K” by Aris Karitinos.Managing Director of Prodea Investments.

During this period, hundreds of millions of euros in fundraising files have been or will be filed by almost all companies in the sector.

According to Mr. Karitinos, “In terms of material costs, we see some adjustments, but in any case, we have added this factor to the final formula of each project so that the additional cost is factored into the prices. But it is possible that we will have some impact on performance.” In doing so, Prodea plans to use the funds offered through the Recovery Fund.

“We have submitted various files and are preparing several more, especially for the continuation of energy modernization projects in our existing facilities, for example. photovoltaics on rooftops,” says Mr. Karitinos. It is recalled that, through the Recovery Fund, AEEAP can only finance green activities in both existing and construction projects. In short, they are funded, for example. automation systems, technologies for reducing energy consumption and related projects, but not ordinary structural elements, such as, for example. concreting or earthworks and foundations.

Another step Prodea has taken to limit its risk in the face of high interest rates is to offset them by purchasing insurance products. According to Mr. Karitinos, about 65% of Prodea’s loans have an interest rate hedging agreement. At the same time, the increase in rents in a significant part of the company’s portfolio helped to cover the increased cost of interest rates.

Konstantinos Markasos, Managing Director of Premia Properties, characterizes the cheap cost of borrowing through the Recovery Fund as a particularly beneficial development for AEEAP. “This is a very important low-cost financing tool that effectively offsets the risks of rising interest rates and allows us to smoothly implement our investment program,” he says. Premia has already applied for €45 million in funding through the Recovery Fund. The main project to be financed in this way concerns the reconstruction and energy modernization of the Heart of Athens. The shopping center is planned to be turned into a modern office building with bioclimatic characteristics and high energy efficiency. The cost of these investments is estimated at around 35 million euros.

At the same time, according to Mr. Markasos, “Premia also has a cushion in the form of bonds worth 100 million euros, which we issued in early 2022, shortly before the start of the increase in interest rates. Thus, we have provided a stable interest rate for the next five years, which is an important protection against high interest rates,” says the head of the Premium. As the company announced this week, its cost of borrowing is currently around 3.7%.