Prodea is planning capital expenditures (capex) of nearly €400 million as it aims to significantly expand its portfolio in the coming years, with a focus on hotels and logistics.
Speaking yesterday at the company’s Annual General Meeting, Aris Karytinos (photo), CEO, stated that the REIT “has selective exposure to the residential rental market and data centers. We are reducing our exposure to non-strategic and mature properties that we continue to hold in our portfolio. Bank branches have practically disappeared.”
The largest portion of investment spending is allocated to hotels (€215 million), while €95 million and €80 million are allocated to logistics and residential properties, respectively.
“The logistics portfolio is the second pillar on which we will grow; currently, our five assets total approximately 155,000 square meters,” added the CEO.
The goal for hotels
In the hotel sector, AEEAP’s portfolio amounts to €1 billion with approximately 1,300 “keys,” and the goal is to increase it to €2 billion. At the same time, the company anticipates revenue from the hospitality sector amounting to €260 million with an EBITDA of €79 million.
Branded residences are also included in the hospitality sector. These include Park Lane, a residential tower with 37 apartments located in Limassol, and another residential project in Nicosia. In Greece, a similar project is under development in Paros. Once the projects are completed, AEEAP will proceed with the sale of the apartments at an average price of €16,000 per square meter.
At the same time, AEEAP is investing in rental apartments in Athens, in areas such as Pagrati and the city center. Currently, the number of apartments stands at 200, while the goal is to increase that number to 600 within the next two years.
According to company data, 33% of its portfolio, which totals 1.8 billion euros, is invested in the hospitality sector, while 34% is in office properties. Eight percent is in logistics, while another 10% is invested in the retail sector and big-box stores.