Top tier Greek REICs and real estate development firm Dimand, are expected to battle in order to purchase the iconic property located in the center of Athens. At the same time, commercial companies and hotel groups are expressing
strong interest in renting and exploiting the building due to the location.
MINION is based on the building block that is rounded by
Patision, Satovriandou, Veranzerou and Dorou streets and belongs to Folli
Follie, an ATHEX listed company that is currently under liquidation. The
property has a total leasable area of 21,000sqm and is not comprised in the firm’s
list of properties that will be liquidated. Folli Follie wishes to receive the
highest possible price for the historic property that has already been underwritten
twice for a total amount due of c.€ 45million.
It is noted that Danos, a member of BNP PARIBAS REAL ESTATE,
will act as consultant to conduct the tender process for the disposal of the asset.
The brand’s history
In 1934, businessman Giannis Georgakas along with one more
partner founded a kiosk named “Minion”. From the 1950s the little entity has been
gradually evolved into a large department store with 120,000 products available
on shelves and 1,000 employees. In the middle of the festive season, in the
early hours of December 19, 1980, the department store was destroyed by an arson.
Following the severe damage, the building’s restoration was
financed by bank lending and the store reopened in 1983. Nevertheless, and due
to the heavy debt load in the company’s balance sheet the firm was acquired by
the Greek State. The brand has been unprofitable since 1990 and in 1991 businessman
Georgakas re purchased the asset. The store was spanning in 9 floors but only
one of them was operating every festive season. It was the first store to use
indoor escalators and one of the first with air conditioning.
Minion’s operations were terminated and shortly after Elmec
Sports purchased the property with the goal to renovate and reopen the store. Elmec
though was sold, and Minion was transferred under Folli Follie Holdings S.A. ownership.
The company had initially planned to rent the building to the Greek Ministry of
Environment, but after this project failed in 2012, has started to work on reopening
the well-known store once again. This process though was abruptly terminated after
a revelation in 2018 according to which Folli Follie has been consistently deceiving
its shareholders and investor with misleading financial reporting. Eversince
the firm has been under liquidation.
It is noteworthy that the estimated value of the property as
of 2019 was at c.€25million.
