13.07.2022
Prodea Investments is planning new investments in Cyprus through a joint venture with MHV in which it controls 25%. MHV currently has a gross asset value (GAV) of 374 million euros, owns 4 hotels and has a development area of over 42,000 sqm. residential development projects and more than 17,000 sq.m. for the development of office buildings (these are two towers being built on our island). The long-term goal of MHV is to build a real estate portfolio worth 1.5 billion euros.
It is worth noting that, in cooperation with ΜΗV, Prodea has also entered into a preliminary agreement to acquire the 4-star Porto Paros Hotel in Kolymbithres, Paros. In addition to partnering with the Papalekas group through MHV, Prodea is considering using two properties in its portfolio (in Mitropoleos and Iera Odos) that are interested in converting them into hotel complexes. However, at the moment it has not been decided whether to follow the model of selling the property in question or renting it out. There are also rumors that Prodea, together with Invel, is going to expand on the island of Milos, considering the possibility of acquiring an existing hotel.
In more detail, Prodea Investments is planning a €200 million investment program focused on residential development, which is part of its wider €790 million investment program.
In terms of other investments, AEEAP, after acquiring real estate in Elliniko (outside Metropolitan Park, developed by Lamda Development and intended for the construction of a residential complex), has entered into cooperation with specialized developers to create in the first phase of five residential projects in Attica, with a focus on northern suburbs.
According to Prodea management, the initial investment in the acquisition of the land is 17 million euros, while the cost of building concrete residential complexes is expected to be around 40 million euros, bringing the first phase of investment to 60 million euros. The five residential projects are at various stages of maturity, with Prodea management estimating the phased completion horizon will range from 18 to 36 months.
according to Prodea Managing Director A. Caritino, and some of them are expected to be available with the Built to Rend model as a pilot for the company in this particular form of real estate exploitation.
In addition, according to Mr. Karitinos, it is a largely unknown product in the Greek market and it remains to be seen how much profit it can offer, given that as RICS Prodea expects a return of 7% on average.
In any case, the company plans to expand its portfolio of residential projects, while, in addition to the above , it also has a student residential building in Kypseli.
In addition to the above developments, and after preliminary approval for the construction of a private school in Elliniko, Prodea management continues to be interested in individual developments (residential, office and special buildings) as proposals from Lamda Development mature.
In any case, the company is moving forward with its current investment plan of 790 million euros, having already contracted 66% of it. In more detail, the ongoing projects relate to properties in which Prodea is or will become the exclusive owner under the contract after their completion, and consist of wholly owned (38%), two joint ventures in which Prodea will acquire full ownership of the developed property (52 %). ) and legally binding future acquisitions of properties under construction (10%).
Prodea’s management has confirmed that the intention of the company’s major shareholders is to conduct an offering or use other means to expand the dispersion of the listed company’s shares, which currently stands at 4.7% (with major shareholder Castlelake controlling 95.3%). It is recalled that the Invel-Prodea scheme, in the context of a binding proposal for the Skyline project, includes, in addition to cash, the transfer of 4% to 5% of the authorized capital of Prodea Investments to Alfa-Bank .
If the joint venture becomes a preferred investor, the number of shares in free float will be increased, but there will be room for an additional private placement during the second year, in the order of 5%-10% of the share capital of AEEAP listed companies .
