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Pasal will play a key role in the market

23 June 08 | S.Theodoridis
S.Theodoridis

COMPANIES

PEOPLE

By: Yiannis D. Papadomarkakis

What makes you think that this is the right time?

By: Yiannis D. Papadomarkakis

What makes you think that this is the right time?
Right now everyone realizes that matters that are lingering, such as the land register and other existing obstacles, should be solved and I believe that they have to be solved because this is financially imperative. You see what is happening with the pension funds.
They cannot afford to pay up pensions and the assets remain unexploited. How are they going to develop all these? The properties exist, the needs exist such as the users and what it takes is the developer to put all these together. It is a financial issue.

PASAL's portfolio consists of a great deal of properties that are leased to SATO. This characterizes a REIT. Why didn't you choose this direction?
We consciously did not move towards this direction. The properties of SATO that are now leased to SATO, are a starting point. All of these properties will no longer be ours.
They will be sold. We expect to buy properties, create added value, sale them and move on. Consequently, the properties that are now leased to SATO will not belong to us in a while.

Is there a special direction?
The company has to grow bigger, because businesses are like a bicycle where if you stay put, you will fall. Pasal is getting organized in such a way so as to play an important role in real estate market. We begin with retail warehouse, where there is the problem with the expensive land plots. It is difficult to get a lease of ­5/sqm/m-­6/sqm/m and an 8% yield. The next step will be to deal with second home. We are also planning our expansion in the Balkans (Serbia) in a very carefully way.

Why Stock Exchange?
We want to be listed because we believe that a listed company is more orderly. The right structure, executives' recruiting, stock options, transparency, prestige. A listed company guarantees that it will continue existing regardless its founder's existence.

What are you going to do with the capital you will raise?
Our work is based on capital and each project has its own funding. So, we will invest the capitals we will raise to properties, from which we will gain three to four times the profit, including development cost.

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