Dimand launches affordable housing initiative

This initiative marks a meaningful shift for the company toward a sector of growing importance, particularly in light of rising rents and the increasing difficulty of accessing affordable housing.

During the presentation of the company’s financial results to members of the Institutional Investors Association, Chief Executive Officer Dimitris Andriopoulos emphasized that affordable housing will constitute one of Dimand’s key growth pillars in the coming years. The company has already identified and acquired its first properties for the development of this activity, beginning with a pilot project in the wider Petrou Ralli area.

The project concerns the construction of a complex comprising 140 apartments, with sizes ranging from 65 to 100 square meters. These units will be offered for rent, with the objective of maintaining affordable pricing. Specifically, rents are expected to correspond to 25% to 30% of the average household income, estimated at €2,400, translating into approximately €600 per apartment.

The development will be carried out in collaboration with the landowner, allowing for more efficient use of resources and a reduction in investment costs. The company is targeting single-digit returns, appealing to socially oriented investors. Through this pilot initiative, Dimand aims to draw valuable conclusions regarding construction costs, property management, and the potential role of the state. In particular, the possibility of state support through rent subsidies or enabling infrastructure is being examined.

Based on the results of the pilot project, the company plans to proceed with more extensive investments, starting with three new properties in Thessaloniki, Athens, and Piraeus. At the same time, institutional solutions for cooperation with the state are expected to be explored, including legislative interventions to facilitate rent subsidies.

Four Pillars of the Company’s Five-Year Plan
Dimand’s broader strategic plan for the next five years is built on four main pillars: partnerships with investment funds for the development of real estate portfolios such as Skyline-type assets, urban regeneration projects, affordable housing development, and tourism investments. The company has already launched 13 projects, six of which are currently under construction, with additional projects expected to be announced within the year. Based on these developments, Dimand has secured approximately 70% of its projected results for the next five years, with estimated pre-tax profits reaching €140 million. The total value of its portfolio exceeds €1.7 billion.

Particular emphasis is also placed on the tourism sector, which represents another key growth driver. The company has already invested in the Gournes area in Crete and plans to develop four additional tourism projects, comprising approximately 1,600 rooms over the next five years. On the site of the former U.S. base in Gournes, one or two large hotel units are planned, with a capacity of 400 to 500 rooms. A decisive factor in the investment decision for the area has been the development of the new airport in Kasteli. Dimand’s overall tourism portfolio will include two resorts and three city hotels in strategic locations such as central Athens (Sofokleous and Aiolou streets), Piraeus, and Thessaloniki.

At the same time, the company continues to expand its activities into other sectors. Within 2026, one or two agreements for the acquisition of new real estate portfolios—similar to the Skyline project, in which Dimand has already invested and is expected to triple its initial capital—are anticipated to be completed.

In addition, the sale of the remaining 70% stake in Piraeus Tower is expected to be finalized by the end of the year. The property is currently 85% leased, with the remaining 15% expected to be rented in the near term by two companies relocating their offices from Dubai (one in petrochemicals and the other a hedge fund).

Within 2026, the company also plans to sell its stake in the Technical Chamber of Greece building, which is scheduled for delivery at the end of September, as well as the property on Patision Street. During the summer, the Piraeus Courthouse is also expected to be delivered, further strengthening the broader regeneration of the Agios Dionysios area, a project initiated by the company a decade ago with the restoration of the Papastratos buildings.

The building on the former Softex site in Votanikos is scheduled for completion in 2027, with part of it expected to be sold within 2026.

The joint investment with AVAX on the VELKA property, located next to the Karaiskakis Stadium in Piraeus, is also in the maturation phase.

Among the company’s immediate plans is the commencement, within the next two weeks, of construction works for the FIX project. Additionally, Dimand has acquired a new property at the western entrance of the city, with development potential exceeding 20,000 square meters of mixed-use space.

At the same time, the company is seeking co-investors for logistics projects in Thessaloniki (on the VALKAN property), which is intended to be developed jointly with the end user, as well as for properties in Paiania and Drama.

Finally, regarding dividend distribution, the company’s management is considering proposing a relevant resolution at the General Meeting in June. Although the conditions for a distribution are in place, the company remains cautious, aiming to preserve strong liquidity in light of new investment opportunities. The key dilemma, as highlighted, lies between distributing profits to shareholders and reinvesting capital to support further growth. At the same time, Dimand aims to strengthen the participation of Greek institutional investors and attract more foreign capital when conditions allow.