Eurobank Properties Real Estate Investment Company (Eurobank Properties REIC) proceeded with the acquisition of a property of 17,847.58 sqm, within the framework of the Company's investment strategy for further expansion of its property portfolio.
Specifically, the property is located on the corner of Vizantiou Avenue & Kachramanoglou Street, in Nea Ionia area (Northern Athens) and is a former industrial building complex (previously Anatolia factory) with permit for office use.
Pursuant to the purchase agreement, the sellers are currently carrying out construction works and improvements, with the purpose of upgrading the building and making it suitable for contemporary office use, for the amount of approximately euro 3.5 million. The construction works will be delivered gradually by November 30, 2007.
Approximately 80% of the property is leased to a multinational company with a leading presence in the industry of cosmetics and beauty products, under the condition of proper execution of the construction works, which are the sole responsibility of the sellers. For the remaining 20% of the property, Eurobank Properties REIC has already commenced negotiations with identified tenants.
The acquisition price was set at euro 24 million. It is noted that based on the relevant valuation performed by the Body of Chartered Valuers (SOE), the value of the property upon completion of all works contractually undertaken by the sellers was estimated at euro 24.1 million. Eurobank Properties REIC has made an advance payment of 10 million Euro, while the current market value of the property (according to SOE) is euro 19.7 million.
According to Mr. Aristotle Karytinos, executive member of the Board of Directors and member of the Investment Committee of Eurobank Properties REIC, "the present investment of euro 24 million has been 100% financed with part of the funds that were raised in the IPO of the Company. It is stressed that with the aforementioned investment, the Company has managed to absorb 80% of the IPO proceeds in a short period of time."
In conclusion, the acquisition of the specific property verifies Eurobank Properties REIC's investment strategy for future growth through selective acquisitions of office, retail, logistics and industrial spaces in prime locations, taking into consideration the prevailing market conditions.