The economic transaction for the largest real estate deal in recent years is expected to close about a year and a half after the signing of the binding agreement. The project, known as Skyline, consists of approximately 570 properties that Alpha Bank has decided to sell, participating in an investment scheme with the consortium of Dimand – Premia – EBRD for their development.
Final signatures are expected to be completed by the fall and no later than the end of 2024. The delay in finalizing the deal is attributed to bureaucratic procedures, such as the electronic building identity, which was established after the agreement was signed. The completion of the deal was announced during the general assembly of Alpha Real Estate Services, which is responsible for managing the properties on behalf of the investors. According to the management of the listed company, the transfer of a number of properties located in the historic triangle requires approval from the KESΑ, which may give the green light up to 9 months after the submission of the relevant request. Additionally, the CEO of the listed company, Yiannis Gkanos, also explained that the transfer of each property to the Land Registry is required for the properties to be mortgaged and the transaction to be completed. It is worth noting that, for example, in the balance sheet of Alpha Real Estate Services, there were 24 properties to be transferred to the Skyline portfolio, 17 were transferred, and the transfer of the remaining seven is pending.
It is worth mentioning that 65% of the approximately 570 properties have been acquired by Dimand (55%), Premia Properties (25%), and EBRD (20%) for around 400 million euros. The investors will retain 50 to 60 properties, with capital expenditures of 45-60 million euros for their upgrade to income-generating properties. The exit horizon for the investment is seven years, with the Dimand – Premia – EBRD consortium targeting a return of 25%. It should be noted that the offices of Alpha Bank on Stadiou Street were excluded from the portfolio, and they will remain in the bank’s ownership, with the building set to be upgraded.
Furthermore, the completion of the first merger of listed real estate companies, Briq Properties and Intercontinental International, is also facing delays due to the electronic building identity. This merger, the first of its kind in Greece, will lead to the creation of a company with a real estate portfolio of 250 million euros. The transfer of 17 properties from ICI to Briq Properties for 60.7 million euros coincided with the new law on electronic building identity. In this case, the delay modifies the terms of the agreement, which will be completed based on property values as of June 30th, as reflected in the investment status of the first half of 2024.
The two parties are also examining terms such as the exchange ratio (which has been agreed in principle as 1 ICI share issuance for every 1.42 new Briq share issuance) and the share purchase price. It is worth noting that the main shareholder of ICI, Ajolico of the Halkia family, has agreed to transfer 25.92% to Briq for 10.2 million euros.
The agreement was announced in early 2022, with the completion of the agreement set as a top priority for the second half of 2024, as stated by Anna Apostolidou, managing director of Briq Properties, during the announcement of the first-half results.
In conclusion, the real estate sector in Greece is witnessing significant developments with these major deals and mergers, showcasing the potential for growth and investment opportunities in the market. The completion of these transactions will not only impact the companies involved but also contribute to the overall economic landscape of the country.