The value of Prodea Investments’ portfolio reached 2.71 billion euros compared to 2.79 billion euros in 2022. This change, according to the company’s accounting statements, is due to the barrage of sales it carried out during the year.
At the same time, the fair value of the investments amounts to 2.4 billion euros, with Prodea Investments targeting both logistics and housing.
Today, the Group’s portfolio consists of a total of 348 properties, mainly shops and offices, with a total leasable area of approximately 1,362 thousand sq.m.
Specifically, 299 of these properties are located in Greece, of which most of them are located in highly visible and commercial areas.
Also, the 21 properties are located in Cyprus, 24 properties in Italy, two properties in Bulgaria and the two properties in Romania.
In early 2024, Prodea Investments acquired a majority interest and control of MHV Mediterranean Hospitality Venture Plc (“MHV”), which is now the main investment vehicle for hotel property investments, for a price of 254 million euros.
This acquisition significantly strengthens Prodea’s presence in the hotel industry, helping to significantly increase the size of its hospitality real estate portfolio.
Prodea paid EUR 70 million as an advance payment on December 8 and a further EUR 75.4 million on the date of completion of the transaction (January 24, 2024), i.e. a total of EUR 145.4 million.
The price, with a nominal value of 90 million euros, will be paid in 3 installments within two years (date until 24/01/2026), while there is also a potential premium, with a nominal value of 18.6 million euros, the payment of which depends with the issuance of building permits on the plots of Porto Paros.
Prodea now owns 80% of MHV, which on 24 January 2024 had a provisional net book value of €364 million, before revaluation of real estate and tangible assets.
MHV specializes in luxury hospitality through its properties and the development of high quality residential projects.
Leveraging strategic partnerships with a network of distinguished international players in hospitality, catering and luxury apparel, MHV focuses on creating high-quality, premium destinations.
In its hotel portfolio, MHV has Parklane, a Luxury Collection Resort and Spa, Limassol, Nammos Limassol, LPM Restaurant and Bar, Park Tower Residences and The Landmark Nicosia in Cyprus. In addition, the portfolio expands to Greece with Nikki Beach Resort and Porto Paros.
In terms of portfolio composition, Prodea is also focusing on increasing investments in the logistics sector, a strategic sector for the development of our country considering its pivotal geographical location.
The company’s strategy is to acquire commercial warehouses of modern specifications, which are not immediately available and require time for their maturation, which varies between nine and twelve months.
In this context, on April 4, 2024, the company THRIASEUS S.A. completed the acquisition of plots in Aspropyrgos, Attica.
The plots in question concern the further expansion of the adjacent area which has already been acquired by THRIASEYS SA. with the purpose of building a modern logistics center of approximately 100 thousand square meters, one of the largest in the country.
The company also invests significantly in residential real estate, as through its subsidiary “Synchrono Katokein Monoprosopi SA”, it acquired a plot of land located on Pontou Street 41 in the area of Nea Erythraia, with a total area of 4.2 thousand square meters (sq.m.) , in which houses for sale will be developed. The price for the property amounted to 5.7 million euros.
The company intends to increase its footprint in the residential sector, with a broad investment program of up to €200 million by 2025-2026 for new residential properties, either for sale or for rent.
AEEAP’s deal with National Bank is still in the finalization phase. It is recalled that the agreement in question stipulated that a total of 43 properties, which the bank leases from Prodea until today, will repurchase them at higher prices than it had acquired in the past.
So far, the sale of 22 of the above properties of the Company to the National Bank of Greece S.A. has been completed. against a total price of 110.4 million, while their book value amounted to 110.6 million euros.
In addition, Prodea entered into a bond loan agreement of 250 million euros with the National Bank. The loan has a duration of 7 years with a 3-month Euribor rate plus a margin of 1.9% and will be used to repay existing loan obligations and working capital.
On March 28, 180 million euros were disbursed, of which 160.24 million euros were used to repay borrowings.
Tags: Prodea billion properties
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