The largest Greek real estate investment company is on track of implementation
The largest Greek real estate investment company is on track of implementation
  Investments  |  Economy  |  Greece

The largest Greek real estate investment company is on track of implementation

RE+D magazine

With the help of the state, which will subsidize up to 75% of the income generated by this organization, the brave man who provides a solution to the housing problem of vulnerable households and by solving a fundamentally social issue, comes to complete the last part of the puzzle, which very carefully began three years ago by Giorgos Zavvos; leading all four systemic banks to join the asset protection program called "Hercules", without having the Greeks being invited to participate - once again - in their "rescue" taxpayer.

All those "well-known" institutional investors who are particularly interested in the Greek real estate market and look forward to the combination of dividend and value, are doing the... math.

Their conclusion is that "a project of managing a scattered portfolio of small houses / apartments is not an investment option when you have a household in front of you which hardly meets the needs of daily living". Especially in a period of extremely high inflation and an energy crisis that is knocking at the door of the hard core of the European Union, making stagflation the most favorable scenario for the strong economies of the North.

The new Entity that complements the bankruptcy law of the second chance, starts with an asset value of around €2 billion, and the investment scheme that bid in the tender for its implementation will be announced by the Prime Minister, shortly after the 15th of August.

In the terms of the Concession Agreement, the acquisition and re-leasing entity undertakes the obligation to acquire the main residence of a "bankrupt" vulnerable debtor, and to re-lease it to him, for twelve years.

The Concession Agreement will provide for a mechanism, based on which, before the exhaustion of the initial financial commitments of the Agency, the latter will have the right to choose to increase them, in any case extending and in time its obligation to acquire a main residence from vulnerable debtors. Otherwise, the State may reassign the obligations and responsibilities of the acquisition and re-lease the entity to another legal entity, without affecting the existing leases that have been concluded with the Entity.

In addition to the Equity Participation, the Entity will be able to finance real estate purchases and its general activity with loan capital from acceptable sources of financing that will be determined in Phase B'.

The State, at its absolute discretion, may choose to provide guarantees to the Agency, the type, amount, extent and consideration of which will be determined in Phase B after taking into account the results of the Competitive Dialogue. The provision of any such guarantee will be subjected to the rules of European State Aid Law, including the approval of an aid scheme by the competent Directorate General for Competition of the European Commission.

The Ministry of Economy estimates that on an annual basis it will purchasing about 5,000 houses, the systemic banks talk about 3,000, with the result that it needs both capital and know-how supported by tools capable of dealing with properties with a wide range in terms of value, but also particularities that require the existence of data that currently do not exist in the shallow and low volume Greek market.

Meanwhile, affordable housing production in the US enters a new world in 2022, with increased emphasis from the Federal Housing Finance Agency, a federal spending bill that will allocate up to $50 billion to strengthen the housing stock and make more options available. financial products. This program aspires to bridge the gap to produce new housing to meet existing and future needs. In this way, it is calculated to meet the needs of a population that has up to 60% of the average income.