Saturday
16 December 2017
ADVERTS

One way expansion to new markets

02 July 08 | G.Mantzavinatos
G.Mantzavinatos

COMPANIES

PEOPLE

He is married and as he characteristically says, "his marriage is the most important deal in his life", seeing in his wife the perfect spouse with whom he has a 5 year old daughter. He values and respects his colleagues and his competitors, not only in Greece, but in Central Eastern Europe as well, where he is seen as an important member of the international Real Estate community. He is optimist by nature, smiles a lot and is passionate with his life and work, for which he says that he couldn't do something else instead. Today, Mr. Mantzavinatos is the Manager of International Real Estate Division of Eurobank Property Services. We talked about the plans of the company he leads, its relationship with the other companies of Eurobank Group, but most importantly we made a journey in the Eastern Europe's markets, where it became evident that the real estate sector is complementary to the expansion efforts of the banking sector. Also, the pioneers who will dominate the markets of the countries that will enter in the EU will make huge surplus value now as in the following decades the businessmen will not be "followers" of the bank of their country of origin.

He is married and as he characteristically says, "his marriage is the most important deal in his life", seeing in his wife the perfect spouse with whom he has a 5 year old daughter. He values and respects his colleagues and his competitors, not only in Greece, but in Central Eastern Europe as well, where he is seen as an important member of the international Real Estate community. He is optimist by nature, smiles a lot and is passionate with his life and work, for which he says that he couldn't do something else instead. Today, Mr. Mantzavinatos is the Manager of International Real Estate Division of Eurobank Property Services. We talked about the plans of the company he leads, its relationship with the other companies of Eurobank Group, but most importantly we made a journey in the Eastern Europe's markets, where it became evident that the real estate sector is complementary to the expansion efforts of the banking sector. Also, the pioneers who will dominate the markets of the countries that will enter in the EU will make huge surplus value now as in the following decades the businessmen will not be "followers" of the bank of their country of origin.

In which countries is Eurobank Property Services present?
The International Division has fully operational offices in Romania, Bulgaria, Serbia and Poland. Right now we are expanding to the Turkish and Ukrainian markets and the expansion to Russia and Egypt is planned for 2008. The bank is already present in these countries, while it has made an offer for the acquisition of a bank in Egypt. There is a development plan for Russia, but it is granted that even if the bank shall not enter Russia, we will, because it is a market that we consider as extremely interesting.

How can this happen without the bank's support?
In Russia there is a market in which the 50% of global institutional investors is currently oriented. We believe that our local offices through their clients and the developers - investors who they already know, will be those who will expand in Russia, therefore we already have a client base to work from. Moreover, as far as the investments' sector is concerned, we have EFG Properties REIT, Global Emerging Fund of Global Finance, as well as, an investing sector from Geneva. So, we have funds of our own that are looking for a product, therefore we can connect the demand to the supply.

Is there a chance to contact other consultants who are posted there for cooperation?
In all countries we go, we make our first steps by establishing relations to these people and to competitive companies. Right now in Ukraine we are developing our own company based on a plan according to which we will work with two international consultants and then we will develop on our own. We do this in all countries. The truth is that if everything goes well, by 2008 we shall have 8 offices in the Area, something that is primarily important to the general Greek presence and secondly because we believe that few international companies cover all markets. When we say "the Area", we mean the Balkans, as well as, Russia, Ukraine and Turkey, that is, the whole of the Eastern Europe. We consider Easter Europe as "the Area".

Does this expansion serve the bank's goals, or the real estate client's goals?
The bank is developing in all these countries. Therefore, it sees in our company an activity platform, which on the one hand will ensure the validity of its loans through our evaluation foundation, because we consider that the way in which we do our evaluation work is considerably advanced. For the bank, this is the reason of existence of our own company. It does not see the ­8-­10 mln profit in the ­820 mln of profit making, but it sees the security of its loans which are ­0.5 bln p.a. and are an extremely important factor for the company to be able to stand in these markets that are very risky. When we talk about this kind of sizes, we do not mean that we shall create a company that has 10,000-20,000 customers, because these make up the retail banking in these markets. We talk about a Fun club, which will include about 100 members and will be made up by developers and investors who will see that that through Eurobank Property Services and its companies abroad, will be able to develop projects and invest with safety.

There is an issue here. Is it possible that the bank's client list in order to remain a client list, leads you to estimations that do not lead to actual projects?
This is a very serious and critical question because the organization faces a conflict of interest, where we, on the one hand, as bankers issue loans in order to use our money, and on the other hand, we have a group of people who are supposed to bring customers who ask for re-loaning and it is reasonable that these people want their projects to enter a process of bank financing. Our experience so far, shows the following: the evaluation part is completely autonomous and that is the reason why our directors separate these two things in two different activities, the real estate and the consultancy part and the evaluation part. So, that means that I bring Traigrant in Romania and say that Traigrant has a land plot in Bucharest, I bring this to my bank and say, "gentlemen, Traigrant wants to develop this project and brings it to us to work on it as consultants and following that, to finance it as well". From this moment, up to the moment when its request is approved or denied, I am not involved in the process. That is, I will only have an answer that will mention its approval or denial.

In what way this affects business in relation to whether or not you will undertake a project?
I have to inform you that in Serbia where our office is very introvert and has many clients this does not affect them at all, because those who are in these markets know that Greek banks are very conservative in relation to Austrian ones, and the second thing is, clients who recognize our ability to make direct contacts to our Greek client list, come to us. This is our great advantage. Behind Eurobank Property Services in any country, the local developers see the potential of the Greek client list that will fill in their projects. The retail projects have tenants. Right now, we have a list of 250 retailers to whom we can say tomorrow morning, "gentlemen, we have undertaken this project", and they will board an airplane and go see it.

Comments

You must be logged in to make a comment
WAVE MEDIA OPERATIONS IKE © 2001-2017
Internet Business Hellas