The head of Inventio Konstantinos Bitros described the returns he aims at 25%, as this figure is limited to an average of 15% - 17%, given that Greece is not a regulated market and its economy is still plagued by bureaucratic factors the resolution of which it eats away at expected returns.
Regarding the international environment, he emphasized that the issue of inflation and the limitation of environmental impacts "are here to stay" and will determine investment decisions from now on.
The sectors in which the American Fund "sees" opportunities and invests in Greece remain transit and tourism, while in the future it plans to expand to agriculture as well.
Through two platforms that he has created, STREAM GLOBAL and ELLA RESORTS, equity capital of over €400 million has already been placed, which exceeds 1.5 billion if leverage is taken into account, while there is no "ceiling" as long as the investment committee evaluates an investment as an opportunity. The two business "vehicles", (Ella Resorts in the hotel sector and Streem Global in the logistics sector,) bring H.I.G to the top three of the most active foreign investors in Greece. It employs, in total, approximately 5,000 workers, creating a significant footprint in the Greek economy.
In order to coordinate the planning, licensing and construction of its projects (Project Management / Construction Project Management), Inventio proceeded to establish Inventio Edge Development, which provides integrated (end-to-end) development and real-estate development services ) and to third parties.
In the established annual briefing of the representatives of the media, which this year took place at the five-star Elissa of the Ella resort in Rhodes, Mr. Bitros and his colleagues referred extensively to these two sectors, taking stock of what happened in 2023 and the first half of '24 for the individual sectors and the projects they have in progress.
Through Ella Resorts in the hotel sector, HIG has created a portfolio of hotels worth more than €1 billion targeting the demographic group that seeks "affordable luxury" both in terms of infrastructure, services, but also experiences that focus on well-being and respect for environment (saving resources through proper design, minimizing the transportation of imported materials, but also utilizing technology. The required Capex for upgrading the hotel units, which means that the cost of acquiring the assets should be reduced to a minimum. Given of the convergence of yields between buildings and shares of listed real estate companies, Mr. K. Sideris, the person in charge of the real estate sector, did not rule out the introduction of the portfolio of hotel units in some EU capital market, not necessarily the Greek one.
In terms of logistics, Streem Global expands the existing network of warehouses in the Balkans, approaching the countries of Northern Europe through the relocation of existing premises, but also the creation of modern warehouses that make possible the use of robotic systems and energy independence through PV panels on roofs. Referring to the ongoing triple merger of MAKIOS and VINOGLOU, Mr. Bitros reiterated the difficulties of the venture "as it concerns companies with structures, clientele and history - which will retain management and a percentage in the new company and pointed out that the objective for the conversion of the former Halyvourgiki plant into an international hub (trimodal) is the completion of the licensing process within the year. Regarding the railway network, he appeared modestly optimistic, but added that Streem will experiment with Hydrogen fuel in road transport. In particular, he added that the fleet of vehicles in Greece is obsolete, while electrification does not ensure sufficient distances.
The investments of "H.I.G. Capital Advisors" in Greece
The investments of "H.I.G. Capital Advisors LLC" in Greece concern:
Industrial brunch
Mailis SA, (2014) rescue of a company through the purchase of loans, restructuring of the organizational structure and operation of the group, increase in turnover.
VEINOGLOU SA (2023) acquisition of the share of the shareholders with retention of the management.
Unit Hellas AE & Unit Shipping AE (2023) acquisition of 100% of the shareholders with retention of management.
Contrade AE (2023) buyout of the shareholding with retention of management.
Light Greece AE (2023) acquisition of 100% of the shareholders of the company that owns logistics facilities in the VIPE of Sindos, the largest industrialized area in Greece. The category A facility has an area of 33,000 sq.m., on a plot of 60,000 sq.m. while its main advantage is the railway infrastructure within the facility that supports rail access to Central Europe.
Instant Trans I.K.E. (2024) acquisition of the 70% shareholding with retention of management. The company operates in the region of Thessaly and Pieria, specializing in storage and last mile transport services.
Nami D.o.o. (2024) Belgrade, Serbia. Acquisition of 100% of the company which specializes in the logistics of refrigerated products, has a customs warehouse license and covers the transport of cargo in Serbia and the wider region. It also has four privately owned buildings with storage space of ~8,000 sq.m. and office spaces of 1,500 sq.m. strategically located near key transport routes such as the Belgrade-Budapest highway.
At the beginning of the year, the merger, under Streem Global AE, of the companies: Unit Hellas AE, Unit Shipping AE, Contrade AE was completed. in conjunction with Unit Logistics SRL, Rohel Trans International SRL and Translink Expedition SRL, in the framework of the A phase of planning for 2024, with the aim of creating synergies and economies of scale. The merger of Makios SA and then of ORFEAS VINOGLOU SA will soon follow.
Hotel Industry
Touristic Enterprises of Notu SA, Rhodes (2018), formerly Aldemar of Rhodes, capital restructuring through buyout of the percentage of the old shareholders, with parallel rescue of the company, complete renovation and upgrade to category A+ energy hotel units with a capacity of 835 rooms (2,500 beds).
Corfu Holdings SA Corfu (ex-Mayor Holdings), capital restructuring (2019), buyout of the percentage of the old shareholders, Complete renovation in progress - upgrade to energy class A+ and expansion of 4 hotel units with a capacity of 1,400 rooms (2,500 beds) The total investment is calculated at an amount greater than €150,000,000.
Purchase of the former Aldiana Club hotel, in the Mochlou region of Crete, with an investment plan of €50m for the renovation, expansion and upgrade to a 5-star hotel to be called Rocrita Lifestyle Beach Resort, with a total capacity of 360 rooms, with an operating horizon of the tourist season of 2025.
Agora, former hotel Althea, in Ag. Marina Attica, capacity ~350 rooms.
Kypriotis SA - Acquisition of loans from 3 banks with a total nominal value of more than 140m (2022).
Development of Ella Resorts and the operational hospitality platform, Ella Resorts (www.ellaresorts.com) which has included 8 hotel units in Rhodes, Corfu, Crete, Athens with a capacity of approximately 3,000 rooms. The goal, for its activity within Greece, is 6,000 rooms, while in the wider Mediterranean, 10,000 rooms
