Two new major properties in L. Syngrou and in L. Piraeus acquired during the first quarter h Prodea Investments, in the context of a relevant agreement with the creditors and the family of the businessman Mr. Yiannis Papatheocharis. It’s about “Athens Arena” on Piraeus Street (junction with Petrou Ralli Street), but also the “Diogenes Pallas“, on L. Syngrou.
The property on Piraeus Street was acquired on March 8, for an amount of 7 million euros. At the moment, Prodea’s management has not decided how to use it, considering various options, such as converting it into an office building, into residences, or even selling it as is. On the contrary, the other property where the “Diogenis Pallas” was housed is going to be utilized as it is, as it is already rented out by insurance companies for office space, while it also houses the studios of the Mega Channel television station. The specific property belongs to the company “Deigma Investitiki”, which was acquired by Prodea, with its consolidation at the same time, through the early termination of the lease agreement and repayment of its creditors. The company was acquired for an amount of 10.25 million euros, while the fair value of its real estate amounts to 21.42 million euros.
Also, from the beginning of the year until April 18, Prodea has collected a total of 29.13 million euros from sales of individual properties in its portfolio, in Greece, Cyprus and Italy. The biggest deal involves the sale of an office building that belonged to the Picasso Fund, which manages real estate in Italy. The price for the property in question amounted to 10.3 million euros. If to these sales is added the completion of the transfer process of the real estate package to the National Bank group, which took place at the beginning of February, the total income obtained by Prodea from the sales of real estate since the beginning of the year is close to 68.5 million euros . In total, within 2023 the corresponding revenue from sales amounted to 274.3 million euros, while properties worth 45.5 million euros were also acquired.
At the same time, the management of the listed company continues the process of restructuring the group’s lending, as on March 22 it proceeded to sign a seven-year bond loan, amounting to 250 million euros, with the National Bank, with a three-month Euribor interest rate, plus a margin of 1.9% per annum. The loan will be used to refinance borrowing, but also to cover other financing needs of the company. Already, at the end of March, an amount of 180 million euros was disbursed, of which 160 million euros have already been directed to the repayment of existing borrowing.
In fiscal year 2023, rental income increased by 10.3% and reached 165.2 million euros. However, Prodea Investments’ group turnover came to €169 million, up from €186.9 million, when non-recurring income from property sales of €36.4 million was included. Operating profit (excluding real estate revaluation and non-recurring items) was 120.4 million euros, up 14.5%. Net profits amounted to 73.82 million euros, against profits of 123.7 million euros. Prodea’s real estate portfolio was valued at €2.71 billion in 2023, up from €2.79 billion in 2022, mainly due to sales made in 2023.
