Greek com­pany to be­come ma­jor player in com­mer­cial real estate

Financial Mirror (Cyprus) - - PROPERTY -

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

Zakaki Li­mas­sol.

The 21 prop­er­ties cur­rently un­der Cyreit

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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%.

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