untitled design

Noval: What investments does the green bond unlock?

By Eleni Botas

Significant investment in real estate development is expected to unlock Noval Property’s € 120 million green bond.

The total investments launched by the second largest GNI in the country amount to a total of 316 million euros, while at the center of its investment plan are five investments which concern:

The under development urban regeneration of the former industrial property of Biochalko with an area of ​​72,500 sq.m. at 252 Piraeus Street, which was included in the Strategic Investment scheme and provides for the development of mixed uses that are expected to include a combination of offices, hotels, homes, sports facilities and other uses, totaling 152 million euros.

The second investment concerns the complex of office buildings under development on 10-12 Heimarras Street and Maroussi – Halandri Avenue in Maroussi (former Kodak property) with a total area of ​​approximately 49,000 sq.m. through the company THE GRID SA (shareholder composition: 50% Noval Property, 50% Mavani Holdings Limited of the Brook Lane Capital group). The amount of the investment is expected to reach 49 million (77.3 million including the purchase price of the land, which is expected to be paid by the end of 2021 with the signing of the contract).

The third investment is the reconstruction of the building on Ardittou Street in Mets, with a total area of ​​approximately 3,480 sq.m. in an apartment and office building, with a total investment of 8 million euros.

Also, the fourth investment concerns a new office building on the property at 16 Heimarra Street in Maroussi, with a total area of ​​approximately 20,175 sq.m. and amounting to EUR 22 million.

Finally, the conversion of former industrial properties with a total area of ​​22,200 sq.m. will proceed. in logistics buildings, with a total investment of 10 million euros.

According to the company’s management, the triptych of its real estate strategy is the exploitation of the industrial properties it owns, either inside or outside the urban fabric. Also the cooperation with international players in the real estate market (as with Brook Lane in the former Kodak property) in order to mitigate the investment risk and also the active management of its portfolio by utilizing adjacent plots of land.

In particular, Noval intends to acquire or develop, either itself or in cooperation with real estate investors, high-quality office buildings with modern infrastructure in the main areas of business interest, as they are a category of real estate with increased demand due to lack of a corresponding product.

In the field of commercial real estate, it aims at the acquisition, development or even expansion of real estate in urban areas of high commerciality and visibility.

The commercial spaces represent 36.7% of the value of Noval’s portfolio, which includes the RIVER WEST shopping center with a total lettable area of ​​19,957 sq.m. (basements and common areas are not included) and the IKEA supermarket with a total lettable area of ​​25,170 sq.m., on Kifissos Avenue, Attica, as well as the MARE WEST shopping center in Corinth, with a total lettable area of ​​12,996 sq.m.

It is noted that within 2021, the construction works for the development and expansion (by a total of approximately 24,000 sq.m. area) of the RIVER WEST shopping center in Egaleo were completed, which includes the development of new dining areas in a common environment with the new building. has been erected on the long-term leased adjacent plot of the former facilities of “EL. MOUZAKIS SA”.

Also in the field of tourist real estate the company aims at the acquisition or development of hotels, in some cases in combination with residences. Tourist properties represent 9.2% of the estimated value of its portfolio. The main property in this category is the hotel in Karaiskaki Square in the Municipality of Athens, where the 5-star Wyndham Grand Athens operates. In addition, the Company owns the hotel of furnished apartments “K 29”, also in Karaiskaki square. Both hotels are
leased to ZEUS.

Finally, in the field of storage and distribution centers (logistics), its portfolio includes industrial / former industrial properties for which there is a possibility of reconstruction, among others, in storage and distribution centers (logistics). Regarding this category of real estate, the company aims to convert these properties into logistics, while exploring selective investments in residential real estate, taking into account the geographical area, marketability, and returns of each property.

It should be noted that the start of the Public Offer for the issuance of the Green Common Bond Loan, starts today, Tuesday, November 30 and will last until December 2. It is a total amount of 120 million euros, lasting 7 years, divided into up to 120,000 intangible, common, anonymous bonds.

The sale price has been set at 1,000 euros per Bond, with a minimum participation of 1,000 euros, while the yield range at 2.60% – 2.95%.

.

Source From: Capital

You may also like

Get the latest

Stay Informed: Get the Latest Updates and Insights

 

Most popular