Pangaea inks deal to purchase CYREIT' portfolio
Pangaea inks deal to purchase CYREIT' portfolio
  REIC  |  Office  |  Greece

Pangaea inks deal to purchase CYREIT' portfolio

The Transaction must be completed by March 29, 2019 (Long Stop Date) or at a later date if agreed in writing between the parties.
19.11.2018

The Company under the name "NBG Pangaea Real Estate Investment Company" announces, in accordance with the provisions of Regulation 596/2014 and its delegated implementing regulations,

 

and   Law   3556/2007 regarding   the   disclosure   of regulated information, that  on 19.11.2018 the Company signed an agreement with Bank  of Cyprus Public Company Limited for the acquisition of a portfolio of properties in Cyprus and Greece as follows:

1) Acquisition of 100% of  the management shares and 88.2% of  the investment shares of CYREIT Variable Investment Company PLC (“CYREIT”) based in Cyprus, and

2) Acquisition of two adjacent commercial properties in Athens, one with a total surface of c. 6.9 thousand sq.m. facing Syggrou Avenue and Lagoumitzi street and the other with a total area of c. 2 thousand sq.m, facing Evridamantos and Lagoumitzi streets.

The total consideration of the Transaction will be determined on the date of the transfer of CYREIT’s shares taking  into  account  the  financial  position  of  CYREIT  on  that  date  and it is estimated to be in the range of €149 million.

An amount of €1 million of the consideration will be paid by  the  Company as  an  advance within  three  business  days  from  the  signing  of  the abovementioned agreement, an estimated amount of €145.7 million will be paid on the date of the completion of the Transaction and the remaining amount of €2.3 million will be paid gradually with the completion of prerequisites in relation to CYREIT’s properties.

In accordance with the terms of the relevant agreement, the completion of the Transaction is subject  to customary conditions precedents, e.g., indicatively,  obtaining  approval  from  the competent supervisory authorities of Cyprus, completing the process of financing part of the Transaction, confirming the  fulfillment  of  prerequisites  with  regard  to the  properties and CYREIT and the Company concluding the legal and technical due diligence of the properties in Greece.

The Transaction must be completed by March 29, 2019 (Long Stop Date) or at a later date if agreed in writing between the parties.

CYREIT,  which  is  incorporated  as an  Alternative  Investment Fund  (AIF),  owns,  through  its subsidiaries, 21 commercial properties (e.g., offices, retail, big boxes, hotel) with a total gross surface  area  of  more  than  120  thousand sq.m.,  in  Cyprus  (Nicosia,  Limassol,  Larnaca  and Paphos).

CYREIT is supervised by the Cyprus Securities and Exchange Commission (CySEC) and its  investment  shares  are  listed  on  the  Cyprus  Stock  Exchange  (on  the  Non-Tradeable Investment Schemes Market).