Bank properties up for grabs

Properties totaling more than 1.5 billion euros are expected to change hands in the coming months, which means another significant liquidation of bank portfolios and the use of a series of buildings, in Athens and elsewhere, with clear benefits for the economy.

Sources tell Kathimerini that the preferred bidder for Piraeus Bank’s Terra project will be chosen in the first quarter of 2022. This involves the sale of a real estate portfolio worth around € 1 billion, including at both assets bought back in auctions and buildings that the lender has been using.

The Terra project represents some 3,000 properties, half of which are located in the capital. Several of these assets are income properties, while others will be re-let by Piraeus as they will house branches and offices of the group. There are also other properties that would allow a change in use or could be revised and used in other ways to maximize their yields.

In the running for this portfolio, several investment funds, including Dromeus Capital, Brook Lane, Resolute, etc., while others, such as Bain, Pimco and Davidson Kempner, could join them.

Another major event in the market is the decision of Alpha Bank to use its subsidiary Alpha Astika Akinita through Project Skyline. The subsidiary acquires hundreds of assets to make it more attractive, and the successful tenderer secures the management of the company and the portfolio. Alpha will retain a minority stake of 49%, not excluding a lower stake depending on the winning bid.

The portfolio will consist of 573 buildings with a total value of 535 million euros. Most of them are in Attica, which makes the package particularly attractive. It is also made up of all categories of buildings, with 45% of office space and 30% of retail space. Among the assets stand out the private properties of the Alpha group, such as the head office on rue Aiolou, considered the most important and valued at 40 million euros.

As a result, Project Skyline will create a major real estate investment and use company, which could also be transformed into a real estate investment company.

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