Prodea unveils €400M investment plan focused on hospitality and logistics

At the same time, shareholders approved the spin-off of the logistics and warehouse real estate division and its transfer to the subsidiary Thriasefs, paving the way for the entry of strategic investors.

Greece’s largest real estate investment company (REIC), Prodea Investments, has been undergoing an extensive portfolio restructuring in recent years. According to the company’s Chief Executive Officer, Aristotelis Karytinos, Prodea has already completed asset disposals totaling approximately €1.4 billion, divesting from property categories that are no longer considered strategically important.

A notable example is the significant reduction of the company’s exposure to bank branches, which once formed the core of its portfolio but now account for just 2% of assets under management. Similarly, office properties now represent 34% of the portfolio, compared with nearly 50% only a few years ago.

By contrast, hospitality has emerged as a key growth driver. Hotel assets currently account for 33% of the portfolio, a share almost equal to that of office properties. Management believes this strategy will generate substantial operating benefits in the coming years, targeting annual EBITDA of approximately €79–80 million from tourism-related assets alone.

This strategic shift is based on the view that Greek tourism, and luxury hospitality in particular, continues to offer exceptional growth prospects. As Mr. Karytinos noted, international investment interest in the Greek market is primarily focused on hotel assets, which offer higher returns than other real estate sectors.

A central pillar of this strategy is MHV, Prodea’s hospitality subsidiary. Through the €346 million acquisition of the Cypriot company, Prodea gained access to a portfolio of nine hotels and resorts across Greece, Cyprus and Italy. MHV currently manages 1,269 rooms and 29 food and beverage outlets while simultaneously developing three high-end residential projects.

The portfolio includes landmark hospitality assets such as Parklane in Limassol, Nammos Limassol, Landmark Nicosia, Nikki Beach Resort in Porto Heli, Porto Paros and Bellevue Cortina d’Ampezzo in Italy, which is being upgraded ahead of the Winter Olympic Games.

MHV’s total investment programme amounts to €292.9 million, of which €213.3 million relates to hotel developments and upgrades and €79.6 million to residential projects. Upon completion, management estimates annual revenues will reach approximately €260 million.

Among the most significant projects currently under development is the €23 million expansion of Nikki Beach Resort in Porto Heli. The project includes the addition of 28 new rooms and a new spa facility. From 2027, the property will operate under Accor’s international MGallery brand under the new name Aliis Resort & Spa.

At the same time, three branded-residences developments are progressing in Greece and Cyprus, with a combined area exceeding 18,000 square metres. These projects are located at Parklane and Landmark Nicosia, as well as four luxury villas at Porto Paros, where sale prices are expected to exceed €16,000 per square metre.

Spin-off of the Logistics Division Approved – The Asset Base of Thriasefs

Prodea’s second major strategic priority concerns the logistics sector. During the General Meeting, shareholders approved the demerger and spin-off of the logistics and warehouse business, which will be transferred to the wholly owned subsidiary Thriasefs S.A.

According to management, the move is intended to create an autonomous investment vehicle with greater flexibility for growth and financing. It will also facilitate the entry of strategic and institutional investors seeking exposure solely to logistics assets rather than to Prodea’s broader portfolio.

Market sources indicate that discussions are already underway with up to two investors who may acquire a combined stake of up to 49% in the new company through a capital increase, while Prodea will retain control with a 51% ownership interest.

The company’s current logistics portfolio includes modern warehouse facilities in strategic locations such as Aspropyrgos, Elefsina and Markopoulo. All facilities are fully leased to tenants with strong credit profiles.

The following assets will be transferred to Thriasefs S.A.:

• A complex of four warehouse facilities in Magoula (Aspropyrgos), totaling 59,000 sq.m. on a site of approximately 146 stremmas, valued at €53.8 million.
• Warehouse facilities in the Rykia area of Aspropyrgos, totaling 27,200 sq.m. on a 68,500 sq.m. site, valued at €24.1 million.
• Warehouse facilities in the Koprissia area of Aspropyrgos, totaling 23,800 sq.m. on a 60,660 sq.m. site, valued at €22.7 million.
• A 21,150 sq.m. plot and a 12,373 sq.m. warehouse in Markopoulo, where an additional 3,104 sq.m. warehouse is planned, valued at €15.1 million.
• Additional warehouse facilities in the Rykia area of Aspropyrgos totaling 5,067 sq.m. on a 13,920 sq.m. site, valued at €4.7 million.
• A site of approximately 15 stremmas and a warehouse building comprising 7,864 sq.m. of storage space and 453 sq.m. of office space on the Elefsina–Thebes National Road in Mandra, valued at €4.9 million.
• The company’s participation in Pleiades, valued at approximately €19 million.

At the same time, a new investment programme worth nearly €100 million is underway, including the Aspropyrgos Logistics Park (approximately 100,000 sq.m.), the Markopoulo Logistics Park (32,000 sq.m.) near Athens International Airport, and the redevelopment of a property in Assos, Corinthia. Upon completion, the value of the logistics portfolio is expected to rise to approximately €260 million.

A key element of the demerger is the transfer of all assets, rights and liabilities of the logistics division to Thriasefs as universal successor. The process was completed without objections from creditors, while shareholders approved all necessary corporate actions and authorisations required for its implementation.

At the group level, Prodea currently manages 120 properties with a total leasable area of approximately 600,000 sq.m., a gross asset value of €1.8 billion and a net asset value of €1.4 billion. Portfolio occupancy stands at 92%, while annualised gross rental income amounts to €64.4 million.

Management remains optimistic that the ongoing restructuring will generate significant value creation over the coming years as the company transforms its portfolio around hospitality, logistics and other specialised real estate sectors, including data centres and build-to-rent residential properties. The total investment programme currently under implementation approaches €400 million and is expected to define the profile of the “new” Prodea over the next decade.