The Stasinopoulos group’s Noval Property wants to strengthen and diversify with mixed-use urban regeneration projects, tourist accommodation, logistics centers, data centers, and housing.
The real estate investment company announced last night that it is proceeding with the issuance of a bond loan of up to 120 million euros.
According to the schedule, on November 29, the company will announce the range of performance, while a day later the public offering starts, which ends on December 2. Following is the announcement of the outcome of the public offering and on December 7, the trading of the new bonds will begin.
It is noted that in the first half of 2021, Noval owned 43 properties with a total gross lettable area of 317.5 thousand sq.m. with the annualized rents under the lease agreements reaching 21.4 million euros. One of the 43 properties is located in Sofia, Bulgaria, while the rest are located in Greece. The fair value of the total investment property of the company, as it was valued by Independent Regular Appraisers on June 30, amounted to 389.7 million euros.
Where funds will be directed
The total net raised capital of approximately 116.2 million euros that will result from the issuance of the bond, in case of full coverage and deduction of issuance costs, will be used as follows:
– 5.33 million euros will be allocated for the full repayment of the bond loan from 23.07.2020 of the company with EUROBANK. This loan is related to the completion of an office building in Chalandri, “THE BUTTERFLY” with a LEED v4 for Core & Shell – Gold certification.
– 12.45 million euros will be used to repay the loan. More specifically, an amount of 6.78 million euros will be allocated for the full repayment of the bond loan of the company with ALPHA BANK from 21.04.2015 and an amount up to 5.67 million euros for the partial repayment of the Open Credit Agreement (Mutual Debt) from 29.07.2014 with ALPHA BANK with total outstanding capital of 9 million euros. These loans are related to the construction of the “MARE WEST” shopping park in Corinth.
– 98.39 million euros, the remaining amount, will be allocated by 31.12.2025 for the company’s investment plan in green investments.
The investment program
The investment program of the company amounts to a total of 316 million euros and based on the Noval Property newsletter, the goal of the firm is the acquisition and development of real estate, such as offices with LEED and / or BREEAM certification, the implementation of mixed urban regeneration projects, the development of tourist accommodation, logistics centers, residences, as well as the investment in data centers.
Specifically, investments in real estate of the existing portfolio, amounting to 231 million euros include:
– the under development complex of office buildings on 10-12 Chimarras and Maroussi – Halandriou Avenue in Maroussi (former Kodak property) with a total area of approximately 49,000 sq.m. The project will be implemented through The Grid, which is 50% controlled by Noval Property and 50% by Mavani Holdings Limited (owned by Brook Lane Capital).
For this project, and for the period 2022-2025 capital expenditures by The Grid are expected to amount to approximately 48.7 million euros (77.3 million euros including the purchase price of the land, which is expected to be paid by the end of 2021 ), 50% of which, ie EUR 24.4 million (€ 38.7 million including the proportion of the purchase price of the land), corresponds to Noval.
– the ongoing urban regeneration of the former industrial property (initial area 72,500 sq.m.) at 252 Piraeus Street, which was included in the Strategic Investment scheme at the end of 2019, in mixed uses that are expected to include a combination of offices, hotel, residences, sports facilities and other uses, with expected international certification LEED / LEED Neighborhood Development or BREEAM Communities. Capital expenditures of approximately 152 million are expected for this project in the period 2022-2025.
– the reconstruction of the building on Ardittou Street in Mets, with a total area of approximately 3,480 sq.m. in an apartment building and offices of expected international certification according to LEED or BREEAM, a project for which capital expenditures of approximately 8 million euros are expected in the period 2022-2024.
– the new office building under development on the property at 16 Heimarras Street in Maroussi, with a total area of approximately 20,175 sq.m. for which investments of 22 million euros are expected in the period 2022-2025.
– the planned conversion of former industrial properties with a total area of 22,200 sq.m. to logistics facilities of adequate energy efficiency, projects for which capital expenditures are estimated at around 10 million euros in the period 2022 – 2024.
In addition, Noval’s investment program includes potential green investments in new properties for which due diligence has already been carried out or is being carried out and / or contractual texts are being discussed, mainly in the categories of offices, tourist accommodation, logistics and housing, amounting to approximately EUR 85 million.
How the bonds will be distributed
At least 30% of the Bids of the Public Offering (at least 36,000 Bonds in case of full coverage of the issue) will be allocated for the satisfaction of the registrations of the Private Investors and up to 70% will be distributed between the Special Investors and the Private Investors.
As of 30.06.2021, Noval’s portfolio included 43 investment properties including office buildings, commercial premises, tourist accommodation / hotels, as well as industrial buildings and warehouses.
It should be noted that the subsidiary of Biochalco has a margin for its listing on the ATHEX until October 15, 2022.