Dimitris Katsaganis
The utilization of the Funds’ real estate is expected to enter a completely new phase, together with the real estate market as a whole, after the announcement of the Minister of Labor, Mr. Kostis Hatzidakis, regarding the imminent establishment of a Special Purpose Company for the utilization and management of its real estate. -EFKA.
This provision, according to a statement by Mr. Hatzidakis, will be provided in the bill for the modernization of e-EFKA which will come in the next few days for public consultation, then to be submitted to Parliament and to be voted in January 2022.
According to him, it is indicative that the Agency has 400 properties across the country, with a total objective value of over 1 billion euros and at least 20% – which concerns high value properties – remains completely unused.
In other words, significant real estate (high-rise buildings, plots, apartments, etc.) could be utilized for the benefit of the income of the Funds, ie the insured themselves and their benefits (pensions, allowances, etc.).
The forthcoming Company will separate the properties for private use and utilization, while it will be subject to a strict corporate governance framework with increased guarantees of transparency and accountability, but also the possibility of utilizing the good practices of the private sector to manage its real estate portfolio.
How it will work
Executives of the Funds, knowing the procedures that are being considered to be followed for the establishment and operation of such a company, note in Capital.gr that it will take shape according to the model of many developed western countries.
Specifically, all the properties of e-EFKA will be “gathered”, and to be contributed to a Societe Anonyme Real Estate Investment Societe Anonyme (AEEAP), which will be set up for this purpose. At the same time, there will be professional management.
This company, as defined by the institutional framework for AEEAP, should be listed on the Athens Stock Exchange within 2-3 years of its establishment.
Goodwill is expected to be created through the lease, sale or purchase of real estate assets of e-EFKA. E-EFKA will benefit from these capital gains as through them it will increase its total income for the benefit of the insured, whose needs (eg outstanding pensions, health insurance benefits, etc.) will be covered, in terms of cash, easier than ever.
However, according to the same sources, the state budget will be the winner, and so all the citizens, as increased income to the Funds from the return of their real estate, may pave the way for a gradual reduction of their subsidy to them, contributing to the creation of fiscal space for increases in expenditures in other directions or for tax reductions.
Competent executives emphasize in Capital.gr that the positive benefits of the above option should be added to the tax benefits enjoyed by AEEAP in case of choosing a different corporate form (SA) for the new company.
* Republished from the “Chapter” that is circulating
.
Source From: Capital
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
