REICs get more room to maneuver
Real estate investment companies (REICs) have been discussing plans for student accommodation, furnished apartments and even residential buildings for the elderly where their healthcare needs are also catered to in recent months.
New legislation introduced in 2013 has offered the sector many more options, as, among other things, it has rendered possible investment in housing, tourism properties and even the entry of REICs into the property development sector, provided that a construction license has been issued for each plot to be acquired and developed.
Therefore the sector’s enterprises have now expanded into other income property categories, besides the traditional ones – office buildings, commercial stores and malls – in an effort to strengthen the returns on their portfolios, attain greater risk distribution and reduce their risks depending on the kind of property.
NBG Pangaea, a company whose portfolio is valued at over 1.5 billion euros, is moving ahead with the development and utilization of student accommodation: Next April will see the first organized apartment complex in Greece designed for students. The complex in Patra will consist of 48 apartments to be rented out for 350-400 euros per month.
