Speaking at yesterday's general meeting of Prodea Investments, the company's CEO, Aristotle Karytinos, referred to the pipeline of 17 new projects. They relate to properties fully controlled by the company, with construction costs for Prodea amounting to €518.2 million, although their actual value will exceed €650 million.In 2027, the company expects to receive rents of €26.27 million from these properties.

The two largest projects have a total value of €120 million and relate to:

• 77 Kifissias Street, Maroussi (property that used to house the amusement park "Aedonakia"), a green office building complex of approximately 19,000 sq m, costs €60 million.
• Logistics park of 100 000 m2 in Aspropyrgos: €60 million.

STRATEGY

Prodea's key objective, according to Mr. Karytino, is to change the composition and quality of the portfolio.  The company's strategy includes reducing exposure to properties that are not important or that have matured, i.e. it focuses on portfolio optimisation. Mr. Karytinos said that "since 2019, we have sold properties for €500 million, with €90 million of this being distributed to our shareholders". This year, properties have already been sold for €24 million.

At the same time, it is progressing property developments in three key areas:

• Green offices: there is a complete lack of stock in a market which is in high demand
• Logistics: the sector is booming due to our country's strategic location, but there are no new sites with large volumes and more green elements
• Hotels: the company is considering increasing its exposure in this sector

Regarding how the company invests, Mr. Karytinos noted that emphasis is placed on the fundamentals of real estate, such as quality, risk/return ratio, optimal location of the property, etc. At the same time, the company is also engaged in redevelopment, i.e. making old buildings green. Furthermore, it is actively practicing asset management, aiming at continuous optimization of the portfolio by selling the most mature ones and replacing them with new ones while seeking the best possible tenants in terms of size and quality. Among the most important tenants mentioned were Mytilineos (for a 60,000-square-meter green building near the airport that was re-let just 2 months after COSMOTE left), National Bank, Sklavenitis, kaizen, Google, Piraeus, Eurobank, EY, Deloitte, etc. Regarding tenants, it was highlighted that 93% have terms to adjust rents according to inflation.

FUNDING 

The company's borrowings at the end of 2023 amounted to €1.396 billion, with a Gross LTV of 47% and a Net LTV of 40.1%. On the financing side, it was reported to be at the target of 40%–45% for Gross LTV and the high end of the 35%–40% range for Net LTV, which the company wants to reduce. 87% of the loans are hedged, with an average maturity of 5.3 years and an average spread of 2.41%