It is expected that new balances in the real estate market will be created by the early completion of two tender procedures for the sale of bank real estate. The reason for the Piraeus Bank’s Terra project, which is expected to have “white smoke” next week, as well as the Alfa Bank’s Horizon project, which entered the completion phase a few days ago after the temporary winner was selected, Dimand Real Estate – EBRD – Premia Properties AEEAP Scheme. The volume of real estate that will change hands, and of course the prospects for its future exploitation, are such that, according to industry leaders, the winners of the tender procedures will have the opportunity to “create” significant capital appreciation and become the center of events in the real estate market.

At the same time, we are talking about transactions with more than 3,000 real estate objects in the amount of 1.3 billion euros. In practice, the potential value is much higher as several properties are offered for refurbishment/renovation and change of use, i.e. they have a significant multiplier benefit for their next owners if they have the know-how to reap the benefits. This is also the reason, e.g. that Alfa-Bank has decided to retain a stake in the company, which will be created to use the portfolio included in the Skyline project, that is, according to its estimates, it can capitalize part of this hidden goodwill.

According to the information, the exact percentage that Alfa-Bank will retain is specified and estimated in the range from 20% to 35%. The remaining percentage will be divided between a consortium of investors, in which Dimand plays the lead role with 51%, while Premia and the EBRD hold the remaining 25% and 24% respectively. The purpose of the agreement is to transform Alpha Astika Akinita into an investment organization for the management and operation of real estate with a “dowry” in the form of a significant portfolio of 575 properties with a total value of more than 500 million euros. It is expected that the finalization of the agreement will take place next autumn, after which the process of forming a new scheme will begin.

Alfa-Bank’s plan is being finalized, next week “white smoke” will go through Piraeus.

It is expected that Dimand Real Estate will play a decisive role in the development of the new company to be established, thus ensuring the development of an important facility of new projects. This is due to the fact that the package of objects that will be transferred to a new investment entity includes hundreds of buildings (more than 300) that need reconstruction, change of purpose and / or change of tenant. In other words, this is an important investment opportunity as these properties have very important “hidden” capital gains that Dimand is expected to “unlock” using his know-how.

In total, the properties that will be controlled by the new subject are divided into three different categories. The first concerns about 50 prestigious properties worth 280 million euros. A further 320 properties worth €180 million are in need of refurbishment/refurbishment to get back on the market. Finally, it is expected that 205 houses/apartments worth €75 million will be gradually sold so that the new company can be financed from these proceeds. Most properties are located in Athens and Thessaloniki, with some in other major cities in the region.

The new investment company is expected to become an important player in the market, given that from the first day of its operation it will have an annual rental income of 10 million euros, and the plan is drawn up for 3-5 years. speaks of tripling this amount to at least 30 million euros. This will be done both through the use of property to be repositioned in the market, which Dimand will take over using its know-how, and through the acquisition of new property, even owned by the shareholders of the scheme. In other words, both Premia and Dimand can contribute new features. As soon as this process is completed, a decision will be made on the possible exit of Alfa-Bank from the scheme, as well as its transformation into AEEAP (an anonymous real estate investment company).

It is expected that Piraeus Bank’s “Terra” project will also become a source of supply on the real estate market of new objects of investment interest. This is the largest property package available on the Greek market today as it includes around 2300-2500 properties with a total value of over 800 million euros. This fact alone is enough to shake the market, depending, of course, on the aspirations of the investment scheme that will prevail in the corresponding competition that has been “working” since last year. Applicants include investment groups such as Brook Lane, Bain, Resolute, Dromeus, PIMCO, Lone Star and Davidson Kempner. Of course, not all schemes are showing interest with the same “zeal”, which is estimated to be shown in the submission of mandatory financial proposals, which is scheduled for next Thursday, August 4, after a few days extension granted (tenders were originally scheduled for July 28) .

125 objects worth more than 300 million euros

The Terra project includes 125 properties of Piraeus Bank worth more than 300 million euros, which are considered a “fillet” that will be acquired by investors. These include 18 properties that the bank will vacate during 2025, when it is expected to move to its new offices in Elliniko as part of a related agreement with Lamda Development.

This means that the owner of the buildings in question, which are located in important positions in the center of Athens, will be able to re-lease them, as well as receive a significant capital increase due to the expected increase in rent up to this point.

18 of them are located in important positions in the center of Athens.

Also on the list is the emblematic Serpieri mansion at the intersection of Panepistimiou and Eduardo Lo streets, a building from the 19th century. It should be noted that, due to the amount of the sale, it is expected that financing from the bank itself (vendor financing) will be provided to the final winner at a percentage of about 50% of the value of the properties, i.e. approximately 400 million euros.

Trastor AEEAP, a subsidiary of the Piraeus Bank Group, also has an indirect interest in the Terra project.

The listed company plans to double the value of its portfolio to exceed 600 million euros by 2025. In this context, in order to speed up the relevant process and make it more attractive to a potential strategic investor (given that Tr. Piraeus would like to provide a certain percentage of Trastor), it is planned to contribute to Trastor the real estate of the Piraeus group in accordance with the percentage allowed by the institutional structure (10% of the portfolio value or about 35 million euros). In fact, potential properties that could be of interest to Trastor management have already been identified.