The real estate arm of National Bank of Greece, Pangaea, has invested in a so called alternative asset, student housing, in the city Patras, in line with global real estate market trends.
With returns shrinking on traditional commercial real estate such as offices and shopping malls investors are turning to niche sectors.
Pangaea has gone for both a city hotel and a student housing unit in Patras, a city of 170,000 people with its own university in the Peloponeese. It recently purchased two properties from Karolou AE for 3.7 million euros.
The first property will turned into a 116 room hotel, while the second will become a 48 room fully furnished student housing unit.
Investments in student housing are expected to draw solid interest in coming years in Greece given that most university students leave home to study in another city.
“City hotels and student housing perfectly integrate into the urban character of our company’s real estate portfolio and, through the expansion of our investment policy in these sectors, the existing portfolio will be further enhanced resulting in risk diversification,” Pangaea chief executive Aristotelis Karytinos recently told investors in New York.
Pangaea, whose share are listed on the Athens bourse, is implementing a four year investment plan of some 600 million euros.
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