Dromeus Capital, an emerging markets hedge fund firm, plans to invest 200 million euros in Greek commercial real estate through the launch of a new fund, taking advantage of undervalued properties, Reuters reported on Monday.
The new investment vehicle, the second Greece-focused fund launched by Dromeus, will seek to acquire office properties in prime central Athens locations which currently offer good investment opportunities for buyers.
Greek Advantage, Dromeus’ first fund launched in October 2012 has returned an annualized 15.2 percent since its launch.
“The Greek economy is showing signs of recovery and Greek real estate has a highly asymmetric risk-return proposition,” said Achilles Risvas, CEO of Dromeus.
Prices for prime office space are down about 40 percent from their peak before the country’s debt crisis and there are also distressed sellers who are forced to offload assets, meaning good value for investors, he said.
Based on central bank data, a protracted downturn in Greece’s residential property market slowed sharply in the first quarter of 2018, raising hopes that prices were starting to respond to a recovering economy.
The new fund aims to buy 30 to 40 properties at a range of 2 to 10 million euros. Dromeus sees a shortage of vacant prime office space, which can provide protection for rents and capital if the market falls further.
“We are no strangers to the Greek market. Our team on the ground and extensive local network of banks, insolvency practitioners and real estate agents gives us a competitive advantage,” Risvas said.