9 March 2018 – Invel Real Estate Management Limited (“Invel”) is pleased to announce that it has successfully completed the reorganization of the ownership structure of its indirect majority stake (the “Equity Stake”) in NBG Pangaea REIC (“Pangaea”).
Over the past four years, the first phase of Pangaea’s investment plan was successfully implemented, seeing Pangaea’s property portfolio grow from Euro 932 million to Euro 1.6 billion while expanding its footprint into new markets such as Italy and Cyprus and significantly improving the tenant diversification in its real estate portfolio.
Looking to implement the second phase aimed at establishing Pangaea as the leading listed REIC in South-Eastern Europe, Invel has attracted the support of global private investment firm, Castlelake, L.P. and another major institutional investor. Castlelake, on behalf of the funds it manages, the institutional investor and Invel (collectively the “Investors”) have acquired a 49% indirect equity stake in Pangaea from prior investors. The Investors together with York Capital Management who was already part of the consortium set-up by Invel for the initial acquisition of the Equity Stake in 2013, own 65% in Pangaea.
Pangaea is the largest listed REIC in Greece. Its real estate portfolio currently worth circa Euro 1.6 billion consists of more than 330 commercial properties, which are primarily office and retail in use. With more than 80% of its real estate portfolio located in prime urban areas throughout Greece and selectively positioned in other key markets in the SEE such as Italy, Pangaea boasts a high- quality, high-yielding, diversified portfolio with recurring cash flows driven by high occupancy levels, long-term lease tenures and a strong tenant base. Pangaea currently generates an annualized rental income of circa Euro 121 million.
Invel was advised on this transaction by ReedSmith, Baker & McKenzie and Dentons.
Invel’s Founder and Managing Partner, Christophoros Papachristophorou, said: “We are delighted to have partnered on this landmark transaction with two new blue-chip institutional investors. We believe that Pangaea offers a very attractive platform for growth at an opportune time in the economic and property cycle. This investment represents a vote of confidence in Greece as a market for future growth, Pangaea as a vehicle to realise that growth and in Invel as an investment manager with highly institutional market expertise. Invel and its partners look forward to ensuring that Pangaea becomes the leading listed REIT in Greece and the broader Southern European region. Moreover, we believe the establishment of the relationship with its new investment partners will be a springboard for other new and exciting projects in Greece.”
Invel Real Estate Management Limited (“Invel”) was established in 2013 to take advantage of opportunities in the European real estate markets by offering investors the ability to co-invest on a transaction-by-transaction basis.
Invel seeks to capitalise on real estate investment opportunities throughout major European markets that involve corporate and government restructuring, complex capital structures, and/or asset redevelopment and repositioning, whilst focusing on specific thematic ventures.
Invel comprises a team of investment professionals with several decades of investment experience across real estate asset classes in Europe. Their combined transaction experience is in excess of €20bn of real estate gross asset value, having completed numerous landmark transactions with successful results.
Invel is headquartered in Jersey and through affiliated entities has offices in London, Milan, Athens, Limassol and Amsterdam. Invel’s local presence and in- depth experience in major European markets creates a platform which identifies and reacts rapidly to a broad range of investment opportunities.