Her Matinas Harkoftaki
The electronic hammer for the emblematic property of Lakis Gavalas in Kantza, which previously housed the headquarters of the fashion metro company, is expected to “sound” on May 13.
It is, in fact, the first time that this area, which concerns the entire field and facilities and in which 3 autonomous buildings have been erected and consists of 12 adjacent plots, which extend over a total area of ​​31,485 sq.m. goes to an electronic auction for debts of 1 million euros with Piraeus Bank in a hurry, while the price of the first offer was set at 9 million euros.
We remind you that in September 2019, a first attempt was made to auction off part of the property of 7,662 sq.m. with a first offer price of 494,000 euros and an accelerated Agricultural Bank under liquidation for a debt of 100,000 euros.
It may, therefore, be more than ten years since the collapse of the empire built by Mr. However, the flagship building of its business, which hosted 85 fashion houses and employed 300 employees, remained on the “ice” for a long time despite the -fruitless- efforts made for its possible utilization by the Attica Region.
Specifically, in 2013 the then governor, Giannis Sgouros had expressed his wish to the Minister of Finance Giannis Stournara to relocate all the services of the Region to the property while a short request had followed a written request from Lakis Gavalas’s lawyer, Giannis Pagoropoulos to the ministry with which the well-known businessman had proposed to offset his debts to the Greek State with his real estate, among which were the facilities in Kantza.
The proposal was eventually left in the “drawer” as the property was under seizure by the Independent Authority for Combating Revenue from Criminal Activity. So, when Lakis Gavalas in 2019 was acquitted of money laundering charges, the property was released, predicting what would follow.
The factor that will judge the outcome of the auction
The bet at the May auction is whether the prospective suitors will eventually show up, who will not only bid to get it but will be willing to invest the funds needed to revitalize the abandoned facility.
The point is that those interested may not have a clear picture – basic information, however, is provided in the appraiser’s report and on the e-auction platform – about the exact condition of the buildings and exteriors as required by the auction process the “hit” takes place essentially in the blind.
According to market cycles, one of the key factors that will determine the outcome is the price, pointing out that if the price is considered quite attractive in relation to current market prices, then the chances of interest and consequently increase final bidder.
This should take into account the fact that this is an emblematic property and it is possible that a potential interested party may want to acquire it for reasons of prestige.
It is worth noting that the appraiser’s report held in the summer of 2021 states that “the supply of independent commercial real estate in the wider area of ​​Paiania, as well as in the neighboring areas of Koropi and Glyko Nero is generally considered moderate, at the same time that demand is characterized as small to moderate “while at the same time it is pointed out that” from the research of the real estate market it was found that, in the wider study area of ​​Paiania, independent commercial buildings with predominant use of offices, collect rental values ​​generally ranging between 4 – 7 € / t. m. of reduced surface “.
To this must be added the upward trends recorded recently by the domestic real estate market, while as noted by knowledgeable sources until May there is a reasonable period of time and until then new balances can be formed in the real estate sector.
This property functioned as a business space and in terms of a possible change of use such as its conversion into a hotel, circles of knowledge indicate that the urban conditions in force in the area probably will not allow this to happen, adding, however that the individual concerned may consult technical advisers in order to examine in depth all the prospects.
Who will the auction be directed to?
The upcoming auction of the property in Kantza brings back to the fore a black page in the business activity of Lakis Gavalas with mortgages and debts to banks and the State.
An era that as he clarifies in Capital.gr he has erased it from his memory forever, describing the building simply as walls that no longer concern him. After all, even if there is a bidder, the amount of debts is such that Mr. Gavalas will continue to owe.
According to estimates, the total amount owed by Mr. Gavalas to banks and the State may today exceed 100 million euros, while only for this property Piraeus Bank has promissory notes and mortgages that exceed 28 million euros and the FAE Athens 11 million euros, at the same time that the promissory notes and mortgages that the Business Collection Unit of AADE has reach 6.625 million euros and IKA Athens 1.8 million euros.
It should be noted that if the property went under the hammer a few years ago then most of the auction would go to cover the debts of the businessman to the State.
This, however, has now changed and according to the new legislation, 65% of the auction will be directed to cover the claims of lenders who have mortgages such as Piraeus Bank, 25% will cover the claims of the State and the remaining 10% will directed to other lenders who have no collateral.
Source: Capital
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