It was placed under special management in 2019, after about three years almost all of its properties acquired new owners through a series of sales, and shortly before the expiration of 2023 the Court will be called upon to decide whether the Ectasis Development will enter bankruptcy.
According to information, the special manager of the real estate development company has filed for bankruptcy of Ektasis Development, which will be discussed at the Athens Magistrate’s Court today, Wednesday. Legal circles explain that the submitted bankruptcy petition is a formal procedure provided by the law for special management and companies that have assets with a value of less than 350,000 euros. Ektasis holds shares in three properties whose total value does not exceed 50,000 euros, an amount that will be allocated to satisfy its creditors, if the bankruptcy petition is accepted.
About two and a half years ago, through fifteen tendersalmost all of the company’s real estate had changed hands, i.e. 31 properties with an estimated value of 100 million euros.
The company had in its portfolio properties in key locations, such as the 17-acre plot on Heimarras 10-12 Streets and Amarousiou – Chalandriou Avenue, in the area of Soros tou Amarousiou. There today the construction of a state-of-the-art office building by the Brook Lane – Noval Property joint venture is in full swing. Ektasis’ portfolio, which has changed hands, includes commercial stores in Agios Dimitrios and Vrilissia in Attica, as well as in Heraklion in Crete, which are leased to retail chains and supermarkets.
Ektasis, led by Panagiotis Efthymiouwas one of the strong “players” in the Greek real estate market during the previous decade, reaching the point of controlling a portfolio of real estate and leasing contracts worth more than 390 million euros.
The beginning of the end for the company began in 2008, when a series of real estate sales agreements totaling 170 million euros were canceled, which led to the inability to service its obligations. The management of Ektasis then applied for the protection of bankruptcy law for the first time, filing an application for inclusion in Article 99. In 2018, the company’s creditor banks filed an application for inclusion in the special management regime, which was accepted in 2019.
