In the investigation of buying interest for the portfolio of 25 properties it has in Italy its administration will proceed in the near future Prodea Investments. It is a portfolio with a commercial value of 402 million euros, spanning 16 major cities in the country and offering a gross leasable area of 192,000 sq.m. It mainly concerns office buildings, while occupancy is 73.6%, according to a recent presentation of the listed company.
The company’s last investment in Italy took place in July 2022, when it had acquired, in collaboration with its parent Invel, a hotel unit in Cortina, Italy, one of the most popular winter destinations in the country, but also in Europe as a whole. In particular, the hotel had been acquired, instead of an amount of 49 million euros Bellevue Cortina d’Ampezzo, which was planned to be completely rebuilt ahead of the 2026 Winter Olympics, to be held in Cortina. It is a six-storey building, which today functions partly as a hotel, as part of it is used as private residences. After the radical renovation of the property, which is expected to cost an additional €25 million, a five-star luxury hotel with a capacity of up to 100 rooms will be created, with the aim of being operational before the start of the Olympic Games.
Once the process of selling the Italian portfolio proceeds, it is expected that significant funds will be “unlocked”, which will finance the particularly ambitious investment program that Prodea has in progress in the Greek market. Based on a relevant presentation of the listed company, projects and agreements for new properties, with a total value of 517 million euros and an area of more than 266,000 sq.m., are already “running”. In fact, 93% of these properties will carry relevant certification for their green characteristics, significantly enhancing the performance of Prodea’s portfolio. Of these properties, 42% are new office buildingsthe 35% residences and hotelsa sector that the recently listed company places great emphasis on, while an additional 13% will concern new logistics facilities.
These are mainly office buildings, while their occupancy is 73.6%.
The new properties are expected to increase annualized revenue from rents by 10.7 million euros by the end of 2024 and by 25.2 million euros by the end of the first half of 2026, when most of them are expected to have been delivered for use. The management of the company estimates that the high demand of users for quality spaces, the lack of new buildings with bioclimatic characteristics, works in its favor, as it allows for an increase in rents and therefore also the yield, especially if the property has not been acquired by third parties , but is a development of some of the company’s own properties.
The listed company is completing this period and the sale of a portfolio of 43 properties to its group National Bank. This is an agreement with a total value of 237.2 million euros, through which liquidity is also drawn and Prodea’s debt is reduced. Specifically, cash and cash equivalents will increase to 269 million euros, from 176 million euros before the sale. At the same time, the net ratio lending to the value of the company’s portfolio will be 41.8%, approaching the strategic goal set by the management. This ranges between 35% and 40%.
