PRODEA transfers €85.17M in hospitality investments to MHV

The transaction forms part of a broader intra-group restructuring, with a total appraised value of €85.17 million, aimed at consolidating the group’s hospitality investments under MHV.

According to PRODEA’s financial statements, on 24 March 2026, 100% of the shares in Rinascita S.A. were contributed to MHV. Rinascita holds the long-term lease of the property located at 65 Stadiou Street. The value of the equity stake was determined at €13.83 million, based on a valuation conducted by PricewaterhouseCoopers Ltd Cyprus.

The transfer was completed through a contribution in kind as part of a share capital increase at MHV, without any cash consideration. The valuation relates to the shares of the operating company and not to full ownership of the hotel property.

From Sarogleio Mansion to Moxy

The history of the property is closely linked to the post-war transformation of Omonia Square. Until 1965, the site of the current hotel was occupied by the two-storey residence of military officer Petros Saroglou. In 1967, the eight-storey Sarogleio Building was constructed, housing the Athens Magistrates’ Court and the Misdemeanour Court for several decades.

The property is owned by the Army Share Fund, which holds a 62% stake, and the Armed Forces Officers’ Club, which holds the remaining 38%. Following the relocation of the judicial services, the building remained unused for an extended period until the decision was taken to convert it into a hotel.

The property’s return to the market was made possible through a partnership between DIMAND, PRODEA and the European Bank for Reconstruction and Development (EBRD). The property was leased for 25 years, with an option to extend the lease for a further 25 years, while the redevelopment investment amounted to approximately €20 million.

DIMAND undertook the development of the project, with architectural design by Maria Kokkinou and Andreas Kourkoulas, interior design by Divercity Architects and construction by VITAEL.

The architectural intervention retained the building’s original structural framework from 1967 while transforming its external appearance. The new façade features vertical metal louvers in shades of green, inspired by the olive tree and its connection to Athens’ history.

The hotel was completed and commenced operations in 2022 under the Moxy Hotels brand of Marriott International. According to DIMAND, the project has a total gross floor area of 10,081 sq.m.

Moxy Athens City was also the first hotel in Greece to obtain LEED Gold environmental certification, incorporating energy-efficient systems and modern sustainable operating standards.

€85.17 Million in Investments Transferred to MHV

The contribution of Rinascita represented the second stage of PRODEA’s restructuring of its hospitality investments.

On 19 March 2026, the interests in Five Lakes Fund, in which PRODEA holds a 75% stake, had been transferred at a valuation of €44.91 million. On 30 June, this was followed by the contribution of 100% of the shares in Papalon Investments Limited, valued at €26.42 million.

The three transactions had a combined value of €85.165 million. In exchange, PRODEA acquired 85,165,000 ordinary shares in MHV, each with a nominal value of €1.

According to the financial statements, the restructuring resulted in a loss of €602,000 in PRODEA’s separate financial statements, with no impact on consolidated results, as the transfers took place between companies under common control.

Looking Ahead

The consolidation of hospitality investments under MHV forms part of PRODEA’s strategy to establish a specialised hospitality investment platform with operations in Greece, Cyprus and Italy.

MHV’s investment programme amounts to approximately €346 million, of which €252 million is allocated to hotel developments and €94 million to residential projects. The company aims to increase the value of its portfolio to more than €1.23 billion over the next three to five years.

The addition of Moxy Athens City expands MHV’s presence in the urban hospitality market, complementing its investments in luxury resort complexes and mixed-use developments.