The country’s largest Real Estate Investment Company (REIC) is initiating its transformation into a holding company, through the establishment of specialized subsidiaries and a clearly defined strategic focus on two sectors with strong investment momentum: luxury hospitality and logistics.
Speaking to journalists, management explained that the company is undertaking an aggressive portfolio restructuring, fully aligned with international real estate trends.
The asset disposals involved properties that had been gradually acquired over a 15-year period and which, in the meantime, generated substantial capital gains. Following the completion of these transactions, Prodea’s portfolio is valued at approximately €1.88–1.9 billion, remaining by far the largest REIC portfolio in the Greek market. “These are the largest transactions carried out at a pan-European level, demonstrating that transactions of similar scale can also be executed in the Greek market,” emphasized the Chairman of Prodea’s Board of Directors, Mr. Christoforos Papachristoforou.
Of the total proceeds from the portfolio sale, approximately €600–650 million will be allocated to debt reduction, reducing the loan-to-value (LTV) ratio to 50% from the current 55%–56%. The remaining funds will be deployed toward new investments and shareholder distributions, with management stressing that financial deleveraging is a prerequisite for the company’s next growth phase.
Luxury hospitality: a core growth driver
The hospitality sector is emerging as a central pillar of the “new Prodea,” operating under its subsidiary Mediterranean Hospitality Venture (MHV). It currently accounts for approximately one third of the portfolio’s value, a share that is expected to more than double over time. The group already owns nine hotels, placing strong emphasis on active management and operational risk control.
The investment plan for the sector amounts to approximately €340–350 million over the next four years, with funding already secured. Planned projects include new hotel developments in Mykonos and Paros, as well as investments in Italy, where Nammos-branded restaurants will also be developed within hotel complexes.
At present, Prodea operates approximately 900 hotel keys. With projects currently under development, this number is expected to increase to 1,269, with a target of 2,000 keys over the next three years—and potentially 3,000, should suitable opportunities arise. “Our focus will remain firmly on the luxury segment. These assets are resilient across market cycles,” noted CEO Mr. Karytinos, adding that markets such as Spain are also being selectively assessed, although management described Spain as “overvalued.”
Establishment of a dedicated logistics platform
The second strategic pillar is logistics, which is expected to acquire a distinct corporate structure. Prodea currently owns approximately 140,000 sq.m. of modern warehouse space—primarily in Aspropyrgos—generating annual revenues of around €8 million. Development is under way for an additional 130,000 sq.m., while a broader pipeline is being evaluated that could increase total logistics space to more than 300,000 sq.m.
Indicative of the company’s strategy is the recent acquisition of a 70-acre site in Markopoulo, where 30,000 sq.m. of warehouse facilities will be developed, with leasing interest already reported as strong. According to Prodea’s Chief Investment Officer, Mr. Thanassis Karagiannis, the objective is for logistics revenues to reach €18 million within the next two years and exceed €25 million within a four-year horizon. Key locations include Aspropyrgos, Markopoulo, and Thessaloniki, which was described as “the next attractive market.”
Holding structure, specialized platforms and strategic optionality
With respect to the future corporate structure, management emphasized that all options remain open, with final decisions expected within the next two years. The strategy envisages the creation of vertically integrated, specialized platforms with dedicated teams capable of attracting targeted investor capital, supported by a parent holding company providing centralized services.
“We will assess whether it continues to make sense to operate as a REIC. It is far too early to draw conclusions. Only around 10% of global real estate assets are listed; the real activity takes place off-market,” Mr. Karytinos noted. Even the possibility of a delisting from the Athens Stock Exchange has not been ruled out, although—management stressed—it does not form part of the company’s immediate plans.
