Invel pays €390m for remaining 32.7% stake in Pangaea

Invel Real Estate Management has exercised its right to buy National Bank of Greece’s (NBG) 32.7% stake in NBG Pangaea Real Estate Investment Company for €390m.

In 2013, a partnership, including Invel and York Capital Management, acquired a 66% stake in Pangaea, the largest real estate investment company in Greece by managed assets, for around £660m (€772.7m).

In March last year, US fund manager Castlelake and an unnamed institutional investor became part of the Invel consortium that owned the indirect majority stake in the Athens-listed real estate investment trust.

Investment firm Invel said today that following the ”reorganisation of Invel’s stake in Pangaea in March 2018”, it has served a “call option exercise notice” to NBG to acquire from NBG their 32.7% stake in Pangaea.

Invel, alongside nominated entity CL Hermes Opportunities, will buy NBG’s stake for €390m in a deal expected to complete by 30 May.

Pangaea has expanded its footprint into new markets such as Italy and Cyprus, and currently has a portfolio of 345 assets valued at €1.7bn up from €932m five years ago.

Invel’s founder and managing partner, Christophoros Papachristophorou, said: “We see significant potential in the economic and property markets in Greece and southern Europe, where Pangaea has a strong reputation and track record.

“We are increasing our investment in Pangaea to give us further exposure to these dynamic markets through an established and attractive platform.”

Also today, Invel announced that alongside Pangaea and another major institutional investor, it has acquired a majority stake in Aphrodite Hills Resort and Aphrodite Springs Public in Pafos, Cyprus for €50m.

Aphrodite Hills Resort comprises 234 hectares of land, including a 500,000sqm golf course, over 750 luxury villas and apartments, tennis academy, conference facilities and numerous sports, leisure and dining options.

Aphrodite Springs comprises more than 150 hectares of land that is adjacent to Aphrodite Hills Resort, which is licensed to develop a golf course and 125,000sqm of residential and mixed-use properties.

Invel, which targets real estate and distressed debt opportunities across Europe, said Pangaea and its partners will aim to continue the expansion of the resort, with plans to deliver additional housing on the resort.

Papachristophorou, said: “The acquisition of Aphrodite Hills is exactly the sort of strategic investment that we want to increase our exposure to as we believe that hospitality investments in Southern and South-Eastern Europe present opportunities to create significant value.”

 

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