With a delay of six months, the proposed merger is expected to be finally completed Briq Properties AEEAP with the Intercontinental International AEEAP (ICI). Specifically, instead of mid-2024, the new “milestone” for the completion of the transaction is now the end of 2024, i.e. 12 months from now.
This delay is due to a number of reasons, but mainly to bureaucratic procedures that now accompany the purchase and sale of real estate, which become even more complex and time-consuming in cases of large income properties. It is recalled that the agreement foresees, in its first stage, the acquisition by Briq of a portfolio of 17 ICI properties, which, however, as it turned out in practice, was accompanied by extremely complex procedures of an urban planning nature, in order to make the properties transferable. This is the main reason for the delay.
According to the management of Briq, now only the signing of the notarial acts of transfer remains, but these are also delayed due to the current abstention of the notaries of Athens – Piraeus – Aegean and Dodecanese. It is estimated that the process will be completed during the first weeks of the new year, provided that the abstention of the notaries, who are due to meet on the matter on January 8, is certainly stopped. The value of the transaction for the 17 properties of ICI is 60.6 million euros.
ICI will then proceed to reduce its share capital and then Briq will complete the acquisition by acquiring an additional 26% of the company’s share capital, valued at €10.2 million. The total value of the agreement is estimated at 70 million euros and will be financed with bank loans. After the completion of the acquisition, the new Briq will control a portfolio with a total value of approximately 270 million euros.
In the meantime, Briq continues its investment program, which focuses on the further development of the portfolio in the logistics sector as well as in office buildings. Currently, a 19,000 sq.m. logistics building is being built, which will be added to the existing development of 25,000 sq.m. which operated last year, with the Infoquest group as a tenant. The new building is expected to be completed by the middle of 2024. Then the listed company will have created a logistics pole with a total area of 44,500 sq.m. in a single area of 114 acres, with the total investment amounting to 30 million euros (including the cost of purchasing the plots). The annual yield of these properties will be around 8.3%, generating annual rental income of 2.5 million euros.
At the same time, during this period the company is proceeding with the development of a newly built office building, with an area of 2,425 sq.m., using (and) loan funds from the Recovery Fund. The new building will be built on a privately owned plot at 42 Posidonos St., at the height of Kallithea.
