By Leonidas Stergiou
Alpha Bank completed the evaluation of the binding offers submitted by investment schemes that participated in the tender for the creation of a joint venture in the development of real estate and declared the Dimand / Premia Properties joint venture, which was considered the most likely investor, as the preferred investor, as Capital.gr had published on May 17.
The Skyline project had attracted the interest of big names such as Invel/Prodea, Dimand-HIG, Brook Lane and Davidson Kempner.
The Skyline transaction concerns a perimeter of real estate worth around €500 million. The perimeter includes properties in which the new scheme intends to invest significant funds for their re-positioning on the market (re-development), income properties (yielding) as well as properties intended for sales in the market (trade).
Through the transaction, the Alpha Bank Group seeks to better exploit its real estate portfolio, at a time when the real estate market maintains its strong momentum, and, capitalizing on the synergies between a strategic investor such as the Dimand / Premia Properties consortium and the Alpha Bank, to create a leading investment company in the field of real estate.
The Group’s subsidiary company, Alpha Urban Real Estate, which – following its transformation and the absorption of the also subsidiary Alpha Real Estate Management and Investments – will have a central role in the utilization and management of the real estate portfolio of the new structure.
With this specific transformation, the Bank seeks to utilize the accumulated experience in the real estate sector, to achieve goodwill from the operational synergies of the 2 subsidiaries and, finally, to create a strong company, which will provide services for the entire life cycle of real estate (eg estimates, advisory, management, PM/FM etc).
Value and real estate
From the deal, the new scheme will have more than 800 properties worth more than 1 billion euros. The aim of the scheme is to create a large-scale real estate investment platform in Greece, focusing mainly on offices, retail chains and logistics. The transaction will result in a capital gain for Alpha Bank of the order of 300 million euros.
According to information, in the first phase, they include:
* 50 prime assets, worth approximately 280 million euros.
* 320 properties worth approximately 180 million euros.
* 205 houses and apartments, worth approximately 75 million euros
The Skyline project
The aim is that at the end of the five years, which spans the business plan, almost all of the approximately 800 properties, which are expected to comprise the portfolio as a whole, will have been leased.
Alpha Real Estate is about to transform into a company with the exclusive purpose of providing real estate management and exploitation services. Thus, Alpha Astika Akinita (ASTAK) will spin off and sell its real estate portfolio to an unlisted company of the Alpha Bank group, which will also be the special vehicle (SPV) of the Skyline transaction. That is, the entire real estate portfolio that will be utilized will be transferred to the specific company and then a majority package (over 50%) will be transferred to the preferred investor.
Alpha Astika Akinita’s service sector, which to date accounts for approximately 75% of its turnover, is expected with its strengthening to cover the loss of rental income, which will be caused by the transfer of the properties, and to create further profit margins .
As for Alpha Urban Properties, there is no decision on its exit from the Athens Stock Exchange. The initial design of the Skyline Transaction envisaged the transformation of Alpha Urban Properties into a real estate investment platform and the transfer of the real estate management activity to a company of the Alpha Holdings Group. However, during the tender process it was found that, among other things, it burdens the transaction due to the increased formalities imposed by the existing legislation on transactions involving listed companies. For this new plan that (including Alpha Urban Properties) will be transferred to a non-listed company, which will form the basis of the joint venture between the investor and Alpha Bank.
Source: 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.
