Trade Estates: Sale of strategic percentage and 5 + 1 investments

The Fourlis group has signed an agreement for the sale of a strategic stake in Trade Estates, which will soon announce the acquisition of two retail parks in an equal number of cities in the region.

The private placement in the real estate subsidiary of the Fourlis group, which invests exclusively in large size retail real estate (big boxes) and e-commerce infrastructure (logistics) contrary to the practice of other companies in the sector that have a diversified portfolio, concerns an average double-digit percentage ( below 15%) and will precede the listing of the company’s shares on the Stock Exchange.

According to Mr. Vassilis Fourlis, the decision for the entry of the real estate subsidiary in the ATHEX has been taken and in fact the legal deadline will not be exhausted (July 2023), as he mentioned in the presentation of the new logistics center of the group, in Oinofyta.

The general goal is to significantly expand the shareholder composition, in order to increase the marketability of the shares, with the percentage of the group after the public offer ranging from 35% – 40%.

5 + 1 investments

The value of Trade Estates Real Estate Assets, which started with a portfolio of real estate with a book value of 185 million euros after the separation of 5 IKEA stores and a warehouse, now reaches close to 300 million euros, while investments of 200 million have been launched in 5 year horizon.

Specifically, this is a series of new commercial parks, which will be developed in Attica, Patras and Crete, as well as a logistics center for third parties, always in the retail sector.

Many of these investments, such as the commercial parks in Spata, Heraklion, Patras, Elliniko and Chalandri, will be completed within two years, said Mr. Fourlis.

It should be noted that in Patras, Heraklion and Chalandri Trade Estates has entered into a strategic partnership with the Dutch company Ten Brinke Hellas, jointly developing these commercial parks.

Once the development is completed, the commercial parks will be acquired by Trade Estates, as happened with the retail park at the junction of Kifissou and Piraeus streets, in Moschato with users AB Vassilopoulos, McDonald’s, LC Waikiki, Moustakas, as well as the first store of the Polish chain Pepco.

Regarding the retail park in Elliniko, this is an investment of 55-60 million euros with a total area of ​​44,000 sq.m., of which 14,000 sq.m. will be leased by group companies. There are already discussions with several retailers about the rest of the area, where only large stores (big boxes) will be developed .

The trade estates of Trade Estates will be adjacent to Vouliagmenis Mall, the largest shopping center in the country with an area of ​​130,000 sq.m.

Investment of 18 million euros in logistics

The real estate firm of the Fourlis group is the owner of the new logistics center in Oinofyta, which was created for the needs of the sporting goods sector (Intersport and Athlete’s Foot) and later health and wellness products (Holland & Barret).

The manager of this automated logistics center, which is considered the most modern in Greece and serves the 120 sports stores as well as the e-commerce of the company, is Trade Logistics, which pays rent for the lease of the property.

The investment amounted to about 12 million euros, while an investment of 6 million euros has been launched in the new warehouses for IKEA in Schimatari, also owned by Trade Estates.

At the end of the first quarter, the net debt of Fourlis group’s Trade Estates amounted to 86.5 million euros compared to 9.5 million euros a year ago.