Its management is already planning the next generation of real estate development projects Demand, to enhance the future flow of revenue and profitability and thus eliminate the wide variation in performance that companies in the industry typically exhibit depending on whether or not they have sold real estate in each quarter. As mentioned yesterday by Mr. Dimitris Andriopoulosmanaging director of the company, in the context of Dimand’s related presentation to Association of Institutional Investors“by the beginning of the summer, we will be able to announce three new agreements for real estate developments, in the wider center of Athens, both independently and in cooperation with other investors”.
However, according to him, the listed company’s targeting will concern more conservative investments, which means that it will be placed in projects that have secured a user (tenant or buyer, or both) before they start to be implemented. “We have found that this works best in times when the real estate market is on the rise and vice versa, when prices are falling, we can be more aggressive, buying at better prices,” Mr. Andriopoulos pointed out.
Currently, in the center of Athens, Dimand is completing most of it redevelopment of the former Minion, having agreed with two large companies on the lease of the office spaces, while agreements also exist for the spaces of the commercial stores. This part of the property is expected to be sold within the year. Regarding the residences that will be created in another building of the Mignon complex, from 2025 onwards, Mr. Andriopoulos noted that “we are planning 36-37 apartments, for which we already have expressions of interest from over 120 prospective buyers”. These properties will be aimed at a higher income audience, as it is estimated that they will be sold at an average price that will exceed 7,000 euros/sq.m.
Together with Mignon, within 2024, Dimand is launching the sale of five properties, with a total surface area of 100,000 sq.m. (Piraeus Tower, PwC office building, Hub 26 in Thessaloniki and former EEDE office building), while at the same time development work will begin on new properties, with an area of more than 140,000 sq.m., a development that makes the company’s management optimistic that both this year and the following years, revenues and profits will more than double. Already, for 2024, profitability is expected to more than double, as properties worth 350 million euros will be transferred, from which the listed company is expected to secure net income of more than 100 million euros (that is, excluding bank borrowing).
As for Project Skyline, the process of transferring the approximately 700 properties of the portfolio is to be completed by September this year at the latest. However this delay has allowed for the maximization of returns for investors due to the increase in real estate values it has mediated. Thus, given that the 630-640 properties of the portfolio are to be sold and that for several of them, especially the residences numbering around 270, pre-sale agreements already exist, the return on the investment is expected to exceed 25%.
