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Briq Properties aims to reach a €110 m RE portfolio

Briq Properties REIC’s management aims to build a portfolio of assets worth over € 110 million, from € 44 million today, over the next few months, in order to take advantage of the favourable momentum in the real estate market before “the window of opportunity closes”, its executives said. “We have a selective strategy for finding the right opportunities.

“We are not going where other companies go” said Theodoros Fessas, chairman and owner of 52.84% of the company’s equity. The increase envisages raising 50m euros, of which nearly 43m euros will go towards acquiring new properties. The listed company has already invested more than 11 m euros in the last two months and is nearing completion of negotiations on the acquisition of additional real estate worth 14 m euros.

Briq Properties reportedly plans to purchase another hotel (they have already acquired the Mr. & Mrs. White hotel on Paros and Tinos islands), probably on an island in Western Greece, as well as two retail shop properties. One of them is located in the centre of Athens and the other in the city of Rhodes. The most significant move in recent weeks was the acquisition of an office building (with ground floor shop) at 67 Aeolou Street, for €6.5 million, leased to Mesogios SA.

According to the management of Briq Properties REIC, after the completion of the capital increase and the investments that will be made possible through it, its listed portfolio will reach 80 million euros. Bank lending will then be leveraged around 30% -40% of the portfolio’s value, providing the required liquidity for new investments.

The company intends to buy office buildings, logistics centres and hotels (50-150 rooms) that will cost from 1 to 6 million euros. The yields that the listed company aims to secure are around 6.5% – 7%. Curently, with the acquisition of real estate over the past two years, Infoquest contributes about 50% of Briq Properties’ rental income (from 100% originally), which will soon fall below 30%.

Original Source: Kathimerini

Translation/Adaptation: Kiki Athanasiadis