Greek retail property goes for 2.5 mln euros; Deals still low

A commercial property accomodating a supermarket in eastern Athens has been sold for 2.5 million euros though the number of deals seen in the country's real estate sector remain low due to the pandemic.

Pasal Development announced the purchase of property in Paiania, located east of Athens, that has been leased to supermarket AB VASSILOPOULOS since 2019 for a 20-year period and has an initial gross yield of 7.4 percent, the company said.


It is located at Leoforos Lavriou 76, in Paiania, Attica, with total surface area of 1,486 square meters on a land plot of 4,557 square meters.

"The acquisition inaugurates the company’s investments in commercial properties (big-box) with strong tenants, long-term leases and high returns," Pasal Development added.

With the pandemic sending European economies back into a downturn, Greece is expected to have dipped back into recession in the first quarter of the year amidst hopes from government officials for a rebound in the second quarter of the year. Problems though in the rollout of vaccination programs in Europe and fears that tourism will not rebound by as much as expected in 2021 are weighing heavily on economic sentiment in the country.

Most of the buying interest that has resurfaced in recent months has focused on logistics in areas west of Athens to help accomodate the shift to online shopping by consumers.

Real estate investment company (REIC) Briq Properties, majority owned by IT group Infoquest, recently completed a major acquisition involving property in logistics.

For 23.6 million euros, BriQ acquired 80 percent of Sarmed Warehouses, which owns two land plots, with a total area of 131,232 sq.m. in Mandra, western Athens. The land accomodates buildings with a total area of 58,641 sq.m. with storage and industrial uses, office space and ancillary spaces.

Trastor, majority owned by Varde Partners, has also emerged lately as one of Greece's more aggressive REICs, pushing ahead with investment plans despite the tough conditions.

In December it completed the sale of office space in Halandri, northern Athens, for 3.3 million euros, cashing in on gains from a property purchased in 2018.

The deal involved the sale of office floor space covering 1,673 sq.m, including underground areas, located at 270 Kifissias Ave. in Chalandri.

Last year, Trastor signed up an 84.3 million euro bond loan with Piraeus Bank. The funds will be used to refinance 64.3 million euros of existing debt, with the balance going towards its investment strategy.

In another recent deal, the company purchased the 2nd floor of a listed building located at Filellinon & Othonos Str., at Syntagma Square, in the heart of Athens, for 625,000 euros.