Major deals are underway in the real estate market with Prodea leading the way as part of its strategy to divest from properties it considers not to be in its main interest.
According to information made public on the sidelines of the Prodexpo real estate conference, Intrakat is among the buyers of a Prodea real estate package, which will exceed 250 million euros in value.
The construction group did not deny the information, but it cleared out in a statement that no deal has yet been closed: “Intrakat, in the context of its business activity, is constantly examining options and looking for suitable investment opportunities that are consistent with its strategic plan. However, the company informs investors that no agreement exists regarding a takeover.”
Intrakat’s vice-president and managing director, Alexandros Exarchou, has previously proposed new investments. As it is estimated that the acquisition of a real estate portfolio combined with the fact that the real estate market is moving at a positive pace, serves, among other things, the creation of stable cash flows for the construction Group.
Transformation
In any case, the administration of Intrakat has planned for Tuesday, October 29, an event to present the new name of the Group, its transformation and the new sectors in which it will be active.
Explaining the company’s strategy in a discussion at the Prodexpo conference, the managing director of Prodea, Aristotelis Karytinos, noted that the interest in investment (acquisition of a significant share) for a company with properties amounting to 3 billion euros can only come from foreigners.
“It is difficult for the Greek market to implement its own capital increase. So we will turn to foreigners who have solid opinions about what the companies they invest in are like. Perhaps they prefer less real estate in specific sectors,” he said and added that Prodea is now focusing on quality green offices, logistics and hotels.
Prodea, also based on information, will continue selling properties in the next period seeking to renew its portfolio as it simultaneously increases its exposure to the tourism sector and logistics, but also to obtain capital gains since the properties it sells have been bought at lower prices.
It is also looking to increase the spread on its stock as it is required by the new regulation of the Athens Stock Exchange. In addition, it is estimated that the above will make its main shareholder, the US investment fund, Castle Lake, exit in full or in part from its investment in the Greek company.
The discussions at Prodexpo were dominated by the uncertainty observed in the real estate market due to the pending New Building Regulation, and the lack of infrastructure in Athens at a time when developments, such as the Ellinikon project, are underway.
