Greek company to become major player in commercial real estate
Greek company NBG Pangaea is to become the owner of 21 large commercial properties in Cyprus after a EUR 149 mln deal with Bank of Cyprus.
They properties were acquired from Cyreit - an Alternative Investment Fund set up by BoC.
Pangaea has essentially taken over Cyreit Variable Investment Company PLC purchasing 100% of the management shares and 88.2% of the investment shares.
Once the deal is completed, Pangaea will acquire some of the most well-known, and in some cases, emblematic real estate properties in Cyprus, which bring in bring significant rental income.
According to reports, the 21 buildings are expected to bring in their new owner revenues of EUR 96 mln by 2028.
Among properties to be transferred to the Greek firm is the building currently hosting the Ministry of Education, Nicosia’s Shacolas Tower, currently rented out to H&M, the Debenhams Apollo commercial centre in Limassol, Leroy Merlin in Nicosia and the building that hosts
The 21 properties currently under Cyreit
in ownership, pending the finalisation of the deal, were obtained through debt to assets swap deals with defaulted borrowers.
This is not the first property investment Pangaea has made on the island, as they have been active in the Cyprus real estate market through their Cyprus-based subsidiary Qadratix Ltd, which bought the buildings hosting Sklavenitis Supermarket and offices in Linopetra, Limassol.
Last June, Pangaea acquired 100% of Lasmane Properties Ltd, a subsidiary of Bank of Cyprus, which owned the former Holiday Inn hotel in Nicosia covering a total area of 13,000 sq.m.
The price was EUR 11.2 mln, of which EUR 7.5 mln was paid in cash and EUR 3.6 mln was recognised as a liability. The hotel will be fully renovated at an estimated cost of EUR 5.9 mln.
Prior to the acquisition of real estate by Bank of Cyprus, the value of Pangaea’s investments in Cyprus amounted to EUR 37 mln, just 2.2% of its total assets.
Pangaea’s market value exceeds EUR 1 bln and its major shareholder is Invel, holding 65% of shares and National Bank of Greece with 33%.