Prodea Investments’ real estate portfolio restructuring is the “most important and largest move” since the establishment of the company, its CEO, Aristotelis Karytinos, said.
Based on the most recently published data, Prodea has agreed to sell properties worth a total of 880 million euros while launching the development of a series of properties (pipeline) with a total cost (purchase and construction) of 900.9 million euros.
“Until now, we were a multi-sector REIC, and that is how it should have been, since our goal was to grow. We bought properties from all sectors as long as they had promising investment fundamentals and were in good areas. For this reason, our portfolio features shops, supermarkets, offices, logistics and hotels. Now we have entered a more complex phase. We are working on specific sectors and trying to become more attractive and more flexible,” Karytinos pointed out to “N” and explained:
“Our strategy is to reform the composition of our portfolio and our goal is to make the company even more attractive to investors, Greek and foreign. It needs to be understood that, due to the size of Prodea, we also need to address foreign investors. Therefore, in order to make the company attractive, we systematically monitor what is happening in international markets.”
Clear plan
“We have found that the trend in our industry internationally is for REICs to have a clear investment plan, as simple as possible. They are interested in a REIC like us focusing on its country, where it has a comparative advantage.
With our new strategy, we focus on three sectors – green offices, tourist properties (hotels and luxury residences associated with them) and logistics – while we also have participation in selected residential projects. We have Mediterranean Hospitality Venture (MHV), our investment vehicle for tourist properties. Regarding residential properties, whether for sale or for lease, we collaborate with an operating company which identifies, for example, new plots of land for development and carries out the day-to-day management work.
We also want to enter the area of data centers and we hold discussions with foreign stakeholders. These are more expensive and complex constructions developing at a rapid pace worldwide.
Geographically, we are focusing on Greece and Cyprus and will retain a few properties in Italy. In Italy, we will selectively develop hotels since this country, like Greece, is an important tourist destination. We are exiting Bulgaria. I would say that the restructuring of our portfolio today constitutes the most important and largest move by Prodea since its establishment.”
According to Prodea’s data and estimates, after the sale of properties totaling 880 million euros, the value of properties under management (Assets Under Management – AUM) will stand at 2.3 billion euros from 3.2 billion euros. The gross leasable area will stand at 800 thousand sq m. from 1.4 million to sq.m., the net debt/portfolio value ratio will reach 40.4% from 43.2%, the total debt/portfolio value will be at 45.5% from 47% and the rents will amount 90.7 million euros from 145.1 million.
