Greek real estate investment company Eurobank Properties has acquired Reco Real Property, a Serbian company that owns a prime mixed-use office and retail building in the centre of Belgrade. The acquisition price for the shares of Reco was agreed at EUR 22. 63 mln on a liability-free basis. Eurobank will pay EUR 15 mln of the EUR 23 mln acquisition price for the Reco shares when they are registered under its name, with the balance being paid on the satisfactory completion of current refurbishment works and delivery of the building to the tenants in October.
Greek real estate investment company Eurobank Properties has acquired Reco Real Property, a Serbian company that owns a prime mixed-use office and retail building in the centre of Belgrade. The acquisition price for the shares of Reco was agreed at EUR 22. 63 mln on a liability-free basis. Eurobank will pay EUR 15 mln of the EUR 23 mln acquisition price for the Reco shares when they are registered under its name, with the balance being paid on the satisfactory completion of current refurbishment works and delivery of the building to the tenants in October.
The 10-storey building comprises 3,121 m2 of offices to be leased to advertising firm McCann Erickson, and two retail spaces totalling 2,381 m2 are to be let to a café and a fashion store. Eurobank board member Aristotle Karytinos said that the acquisition was the first international transaction for the company, and was made possible by recent changes in Greek REIC legislation. Eurobank have just published their half-year accounts, showing net profit for the first half of 2007 at EUR 23 mln, up from EUR 12 mln for the same period last year. Total assets stood at EUR 444 mln, up from EUR 419 mln at the end of 2006.
