Piraeus Financial Holdings announced today that its subsidiary, Piraeus Bank SA. (“Piraeus Bank” or “Bank”), concluded an agreement with WRED LLC (“WRED”), a related company of Varde Partners, to acquire a stake in WRED, approximately 52%, in Trastor Real Estate Investment Societe Anonyme ( “Trastor”) (the “Transaction”).
The agreed price of the Cash Transaction will amount to approximately € 98m. (€ 1.25 per share). It is noted that the Transaction is subject to the usual terms and approvals, including the consent of the Financial Stability Fund.
Trastor was established in 1999 and was the first company to receive a license to operate as a Real Estate Investment Company in Greece in 2003. It is one of the leading companies in the Greek real estate market in terms of assets (approximately € 0.3 billion) and rental income ( approximately € 14m) during the fiscal year 2020. The largest shareholder of Trastor is WRED, which holds approximately 52% of the company’s shares. Piraeus Bank is the second largest shareholder with approximately 45% stake, while the remaining approximately 3% of the shares are freely distributed on the Athens Stock Exchange.
The Transaction strengthens the strategy of Piraeus Bank for transactions with positive return on capital and brings the following key benefits for the Bank:
-immediate increase of sources of revenue from commissions, with prospects for further increase,
-utilization of the favorable dynamics that is becoming more and more evident in the Greek real estate market, especially in the high-growth sectors of the offices of high standards and logistics, where Trastor is mainly concentrated,
-strengthening the investment proposal of Piraeus with one of the most effective real estate management platforms in Greece, and creating added value for all parties involved.
The expected capital impact of the Transaction on the total capital adequacy ratio of Piraeus Financial Holdings on September 30, 2021, will be practically neutral.
The completion of the Transaction will activate the holding of a mandatory Public Offer by the Bank for the remaining approximately 3% of the shares of Trastor, in accordance with the applicable provisions of the acquisition legislation.
Chr. Megalou: One of the best real estate platforms in SE Europe
“The Transaction will directly enhance our commission income and will further deepen our know-how around the dynamic and rapidly growing real estate market”, says the CEO of Piraeus Bank, Christos Megalou and adds: “Trastor is one of the best real estate platforms in Southeastern Europe and will be an investment tool for the Piraeus Group in taking advantage of the strong growth prospects offered by the Greek market.This agreement gives another boost of value for our shareholders, in the process of achieving the goal of creating the best bank in GREECE.”
For his part, Tony Iannazzo, Senior Managing Director of Värde Partners, said: “Over the last five years we have significantly increased the size and quality of the company’s real estate portfolio, successfully acquiring more than 40 high quality properties, investing in non-core properties. “We have had an excellent cooperation with Piraeus over the years and we believe that the company is in a favorable position to capitalize on the economic recovery, as Greece is emerging from the pandemic.”
The announcement of Trastor
For its part, Trastor, following the relevant announcement of Piraeus Financial Holdings, announced that WRED LLC, the main shareholder of the company, reached an agreement with the also shareholder Piraeus Bank SA, for the acquisition of its stake in the Company, 52%. about.
The agreed price of the cash transaction will be approximately € 98 million (€ 1.25 per share) and the transaction is subject to standard terms and approvals, including the consent of the Financial Stability Fund.
The Company will inform the investing public about any essential developments.
Read also:
The next moves of Piraeus after the acquisition of Trastor
Source From: Capital
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