Logistics, offices offer Prodea transparency but slim pickings on offer

Prodea, Greece’s largest real estate investment company, is pushing ahead with its 400 million investment plan, targeting logistics, top-end residential homes and prime green office space.

In comments to shareholders this week, Prodea CEO Aris Karytinos said that these assets offer transparency amidst newly changed conditions brought on by the pandemic.

However, demand in these segments is rising fast in Greece, pushing prices higher and yields lower. Property investors are scrambling to close deals in green offices and logistics facilities with slim pickings on offer.

Constructions in Greece had only started to thaw out from the country’s ten year economic crisis when the pandemic hit early last year, freezing building activity once again. Now the economy is recovering but the supply of good quality assets remains weak.

Prodea, majority owned by investment fund Castlelake, has a portfolio valued at 2.1 billion euros, based on end 2020 figures. The figure stood at 1.8 billion euros about two years ago.

It adopted a more cautious approach amidst the pandemic when compared with its peers in Greece. Real estate investors, such as Trastor and Briq, boosted their investments in the last year, in anticipation of the expected bounce in the market.

A large part of Prodea’s assets consist of branches and offices that belonged to National Bank of Greece (NBG) as it was previously a part of the banking group. Prodea's income from the NBG properties has since dropped to 42 percent of total revenues.

Prodea is also active in Italy and Cyprus.