We need more real estate companies' listings in the Athens Stock Exchange
What has Mr. Nikos Kontaroudis, Vice President of the Capital Market Commission, said during the first day of the 16th RED Meeting Point.
"IPOs and corporate bonds are the core solutions to finance a company and the capital market should be given a good chance as a tool on this path. Real estate market has already made good use and has partly has capitalize," has the Vice President of the Capital Market Commission Mr. Nikos Kontaroudis said during the first day of the 16th RED Meeting Point.
Very recently when the bond market has been developed in the country real estate companies have borrowed quite a lot (a few issues three or four) but these loans are c.4 billion. Therefore this is a product that has been useful and worked in the country.
"Let me remind you that the interest rates were below 3%, but of course these bond prices are traded much lower at c.5%-6%. It was a very good opportunity for these companies" Mr. Kontaroudis commented.
As the Vice President of the Capital Market Commission said, listed companies in a regulated market such as the Athens Stock Exchange supervised by the HCMC are companies that are trying and really want to grow.
"Companies need capital to finance their growth. In addition to this, they achieve at the same time greater visibility and transparency for their shareholders not only because of the financial statements that listed companies are obliged to publish, but also in terms of the value of company since they are constantly trading in a regulated market. It is also easier to approach private or institutional investors," he said.
AEEAP on... the board
According to Mr. Despite the tax advantages for REIC (they are not taxed on profits from the sale of real estate, nor are they subject to transfer tax), the legislation is old since 1999 and although there are small amendments from time to time, the institutional framework is open to improvement. At the moment, he pointed out, there are 9 REIC, 6 of which are listed, while three are headed for the stock market in the next period.
Investments in Real Estate from 2019 to 2021 in new funds were 85% "green". After all, ESG (Environmental, Social and Governance) criteria and sustainable developments are at the heart of user and investor strategy, while they are now a strategic tool for attracting investment, customers and staff. "The Securities and Exchange Commission is constantly trying to inform and be informed about this entire ecosystem," he noted.