PRODEA reshapes €1.8B portfolio with focus on hotels and logistics

At the end of June 2026, the REIC held 103 properties, compared with 115 at the end of 2025, with a total leasable area of approximately 603,300 sq m. The fair value of its investment properties stood at €1.802 billion, while the value of PRODEA’s assets under management (AUM) amounted to €1.926 billion.

During the first half of the year, PRODEA completed the sale of nine investment properties and properties held for sale, for a total nominal consideration of €101.841 million, against a book value of €107.743 million. This amount, however, includes two intra-group transactions totalling €31.824 million. These involved properties at 3 Mitropoleos Square and 23 Mitropoleos Street in Athens, which were transferred to MSquare Hospitality and M23 Hospitality, respectively, two wholly owned PRODEA subsidiaries. The aim is for the two companies to be incorporated into MHV, the group’s main investment vehicle in the hospitality sector.

Excluding the two intra-group transfers, the consideration from the sale of the remaining seven properties to third parties amounted to €70.017 million.

In addition, the indirect subsidiary Picasso Fund completed the sale of two investment properties for €1.6 million, against a book value of €1.797 million.

In April, the sale of properties owned by Egnatia Properties was also completed for €6.3 million, compared with a book value of €6.457 million.

On 31 March, PRODEA sold a development plot at 22 Tritis Street in Ellinikon for €6.2 million. The property had a book value of €4.745 million, generating a gain of €1.455 million from the transaction.

The execution of the agreement with National Bank of Greece is also particularly significant. During the first half, final contracts were signed for 62 properties, with PRODEA reporting total proceeds of €185.854 million.

Selective Acquisitions

In contrast to the strong activity on the sales side, acquisitions during the first half of the year were limited and targeted.

Pleiades Ktimatiki acquired an adjoining 2,645.6 sq m plot of land in Markopoulo, Attica, for €210,000, while Thriasefs acquired 100% of NOVA M.IKE., owner of a photovoltaic park in Aspropyrgos, for €1.79 million.

PRODEA also acquired the remaining 2.43% of Thriasefs for €592,000, thereby obtaining full control of the company. In May, it acquired a 30% stake in Quadrivium Digital Hellas for €585,000. Quadrivium plans to develop a data centre in Chania.

Logistics as a Separate Pillar

In the logistics sector, PRODEA proceeded with the demerger of the relevant business and its contribution to its wholly owned subsidiary Thriasefs, effectively creating a standalone investment platform for the sector.

The demerged business includes six logistics properties, which as of 30 June 2026 had a combined fair value of €125.793 million, compared with €125.284 million at the end of 2025. All shares in Pleiades Ktimatiki were also transferred to Thriasefs, further consolidating the group’s related activities under a single corporate umbrella.

At the same time, the portfolio continued to be strengthened. In March, Pleiades Ktimatiki acquired an adjoining 2,645.6 sq m plot in Markopoulo for €210,000, while Thriasefs acquired 100% of NOVA M.IKE., owner of a photovoltaic park in Aspropyrgos, for €1.79 million. PRODEA also acquired the remaining 2.43% of Thriasefs for €592,000, thereby obtaining 100% ownership of the company.

The next move came after the end of the first half. On 3 August, PRODEA acquired 100% of LOGEON VC RAIF and, one day later, contributed all of its shares in Thriasefs to the vehicle, with the value of the contribution amounting to approximately €64.7 million.

In September, the Board of Directors approved the sale of a total 49% stake in LOGEON, with 30.35% to be acquired by Invel Investments Cyprus and 18.65% by LGT Capital Partners. The transaction is based on an approximate value of €151.9 million for the underlying properties, excluding debt and other liabilities, while PRODEA expects net proceeds of approximately €30.5 million from the transaction.

Hotels Consolidated Under MHV

A similar restructuring is under way in hospitality, with PRODEA gradually consolidating its hotel investments under MHV.

During the first half, PRODEA contributed its stakes in Five Lakes Fund, Rinascita and Papalon Investments to MHV. The total value of the contributed stakes was assessed at €85.165 million, against which PRODEA acquired 85.165 million new MHV shares.

The development pipeline includes the hotel under construction in Cortina d’Ampezzo, Italy, through Five Lakes, which will comprise 80 rooms upon completion. The fair value of the property had increased to €79.5 million at the end of June, from €61.1 million at the end of 2025.

White Coast Expansion Works in Milos Set to Resume

In Milos, PRODEA plans to resume expansion works at the White Coast at the beginning of 2027. Once fully operational, the hotel will have 117 rooms, following the Council of State’s dismissal of the application for annulment against the relevant approvals.

It is recalled that an application for suspension was filed last January against V TOURISM S.A., the hotel’s owner, in which PRODEA holds a 49% stake. The application followed an application for annulment filed before the Council of State by the Municipality of Milos, the “Hellenic Society for Environment and Culture” association and two individuals.

The appeals challenged the Environmental Terms Approval Decision of August 2024 and the building permit relating to the expansion of White Coast. In the context of the application for suspension, an interim order had been issued requiring V TOURISM to refrain from any construction activity related to the project. The application for suspension was heard on 11 March 2026, while the application for annulment had been scheduled for 6 May.

In Decision 1097/2026, the Council of State rejected the application for annulment, allowing the company to reinstate the project in its development programme. The hotel is expected to open for the 2027 summer season, while full completion of the expansion works is scheduled for 2028.

Telus Tower Sold After the First Half

The divestment strategy continued after 30 June, with the sale in July of 100% of I&B Real Estate EAD, owner of Telus Tower, formerly City Tower, in Sofia, to Eurobank.

The consideration for the I&B shares amounted to approximately €52.1 million, while PRODEA recorded a gain of approximately €29.5 million from the transaction.

Telus Tower is an approximately 54,000 sq m office complex in central Sofia, while I&B also had financial liabilities. The property was developed by GEK TERNA and transferred to PRODEA in 2019 as part of a transaction valued at approximately €78.6 million. It was subsequently included in the portfolio of properties planned to be transferred to AKTOR, a transaction that was ultimately not completed.

Revenue Mix Shifts

The restructuring of the portfolio is already visible in the financial results. Rental income fell to €29.181 million in the first half, from €69.136 million, a development PRODEA attributes to property sales during 2025 and the first half of 2026.

By contrast, hospitality revenue increased to €33.163 million, from €25.657 million, mainly due to the reopening of The Landmark Nicosia and the consolidation of Rinascita’s revenues.

Financial Results

PRODEA’s adjusted earnings before interest, taxes, depreciation and amortisation (adjusted EBITDA) amounted to €49.9 million, compared with €31 million in the corresponding period of 2025, supported also by the realisation of gains through investment property sales.

Group revenue stood at €75.2 million, compared with €112.4 million in the first half of 2025. The decline was mainly attributable to lower rental income, which fell to €29.2 million from €69.1 million, reflecting the implementation of the portfolio restructuring strategy.

The REIC, as announced, is placing greater emphasis on logistics warehouses and hospitality, while also proceeding with the sale of mature or non-core properties and portfolios in the markets where it operates.

Hotel Revenue Up 29%

The hospitality sector provided a counterbalance to the decline in rental income. Revenue increased to €33.2 million, from €25.7 million in the first half of 2025, representing growth of approximately 29%.

The improvement was mainly driven by the reopening of the five-star The Landmark Nicosia – Autograph Collection following the completion of its renovation and repositioning.

Operating profit for the period, adjusted for gains from the revaluation of investment properties at fair value, depreciation, non-recurring expenses and other non-cash items, amounted to €9.4 million, compared with €41.4 million a year earlier.

On an adjusted basis, the group reported a loss of €11.5 million for the period, compared with a profit of €4.7 million in the first half of 2025. The group’s total comprehensive income amounted to €4 million.

According to the company, the results benefited from higher hotel revenue, lower direct property-related expenses, property taxes and fees, and lower financial expenses. These positive effects were offset by the decline in rental income and higher depreciation charges related to the hospitality portfolio.

€1.93 Billion in Assets and Strong Liquidity

The fair value of assets under management stood at €1.926 billion as of 30 June 2026, compared with €1.953 billion at the end of 2025.

The group’s cash and cash equivalents amounted to €206.8 million, while company-level cash stood at €121.5 million.

Management is placing particular emphasis on reducing debt. From 30 June 2025 to date, the group has reduced its borrowings by €712.8 million, with net LTV standing at 46% as of 30 June 2026.

The group’s net asset value (NAV) stood at €3.94 per share.

Greater Focus on Logistics and High-End Hospitality

As PRODEA CEO Aris Karytinos said, the group is in a transitional phase, aiming to reshape its portfolio and develop specific pillars, with an emphasis on logistics and high-end hospitality, while retaining selected commercial properties.

In logistics, PRODEA has announced a partnership with Invel Real Estate and LGT Capital Partners, a development which, according to management, confirms institutional investors’ interest in the group’s expertise.

In hospitality, following The Landmark Nicosia, renovations of PRODEA’s properties in Paros and Porto Heli are being planned, while the full reconstruction of Emblems in Cortina, Italy, is progressing.

Management also emphasises that the gains previously recorded through the valuation of investment properties have been confirmed through sales completed in recent years. In 2025 alone, the company distributed a dividend of €455.2 million.