Bank properties up for grabs

Properties adding up to over 1.5 billion euros are expected to change hands in the coming months, signifying another important clearing of bank portfolios and the utilization of a series of buildings, both in Athens and elsewhere, with obvious benefits for the economy.

Sources tell Kathimerini that the preferred bidder for Piraeus Bank’s Project Terra is going to be chosen in the first quarter of 2022. This concerns the sale of a property portfolio worth some €1 billion, including both assets repurchased during auctions and buildings the lender has been using.

Project Terra accounts for some 3,000 properties, with half of them located in the capital. Several of those assets are income properties, while others will be re-leased by Piraeus as they host branches and offices of the group. There also are some other properties that would allow for a change of use or could be overhauled and be utilized in other ways to maximize their returns.

Vying for that portfolio are several investment funds, including Dromeus Capital, Brook Lane, Resolute etc, while others, like Bain, Pimco and Davidson Kempner, may join them.

Another major event in the market is Alpha Bank’s decision to utilize its Alpha Astika Akinita subsidiary through Project Skyline. The subsidiary is being endowed with hundreds of assets to make it more attractive, and the winning bidder will secure the management of both the company and the portfolio. Alpha will maintain a minority stake of 49%, without ruling out a lower stake depending on the winning bid.

The portfolio will concern 573 properties with a total value of €535 million. Most of them are in Attica, which makes the package particularly attractive. It also consists of all categories of properties, with 45% concerning office space and 30% commercial stores. Standing out among the assets are the private properties of the Alpha group, such as the Aiolou Street headquarters, considered the most important and valued at €40 million.

As a result Project Skyline will create a significant company for property investment and utilization, which could also be transformed into a real estate investment company.