In full agreement for its purchase and sale Smart Park in Gyalos Spatans they arrived Trade Estates AEEAP of the Fourlis group with the REDS of Ellaktor group. As part of this, the property was valued at €110m (encumbrance free), which means that its acquisition will bring the gross value of Trade Estates’ portfolio to around €450m, up from around €330-340m where it is today.
This is an agreement that has been “in the making” since the beginning of the summer, while during the last month the two sides had announced that they were in exclusive negotiations. The sale of Smart Park serves the strategic targeting of both sides. First, Trade Estates significantly strengthens its portfolio at a time when it has put on track an ambitious investment program for its development, with an emphasis on the sectors of trade parks and logistics buildings. In this context, it implements new developments of 180 million euros, which include a new commercial park at the former Hellinikon airport, an investment of 70 million euros, as well as a logistics complex of 56,000 sq.m. and an investment amount of 45 million euros.
At the same time, however, with the acquisition of Smart Park, Trade Estates is also “endowed” with an important asset in view of the listing of the company’s shares on the Athens Stock Exchange. In fact, it was obvious that the company’s management wanted to complete the specific agreement before starting the process of public registration with a capital increase, in order to maximize the interest of the investing public for its shares. According to recent analyzes of brokerage firms, it is estimated that Trade Estates will seek revenues of 70 million euros from the capital increase it will carry out, in the context of the listing of its shares on the Athens Stock Exchange.
As part of the agreement, the value of the property is valued at 110 million euros.
In turn, REDS transfers a property that was its only source of income, but on the one hand it ensures liquidity to finance its new investments in the real estate market, on the other hand it eliminates its borrowing, which will allow significant capital leverage.
REDS has drawn up an investment program that exceeds 400 million euros. This includes, among others, the development of the Cambas Project in Kanza (formerly Cambas Estates), where a mixed-use complex with a total area of more than 90,000 m2 is underway. At the same time, the project of utilizing the property of the former American base in Gournes of Heraklion, with an area of 345 acres, is gradually maturing in terms of licensing, as well as the redevelopment of the Alimos marina.
Smart Park is the largest commercial park in Attica, as it covers a total area of 91,000 sq.m., with a leasable area of 50,600 sq.m., while it also has 1,500 parking spaces.
