Project Skyline Transfer Completion by End of 2024
By the end of 2024, the transfer of the majority of properties under Alpha Bank’s Project Skyline to the newly established management company is expected to be finalized. The notable delay, considering that the agreement was signed in early 2023, is primarily attributed to the legal and technical complexities involved in the transfer processes, particularly due to the implementation of the electronic building identity. Additionally, many properties are located within Athens’ historic triangle, necessitating approval from the Central Architectural Council for their transfer, a process that can take up to nine months in certain cases.
Expected Progress by October 2023
According to recent estimates, it is anticipated that by late September to early October, a significant portion of the portfolio—approximately 50%—will have been transferred. The Skyline Real Estate company is expected to acquire 573 properties from Alpha Bank, valued at €440 million. If this target is met, nearly 300 properties will have changed hands, including some of the most valuable ones deemed suitable for development and enhancement to maximize their worth and performance. From Alpha Real Estate Services, a subsidiary of Alpha Bank focusing on property management, a total of 24 properties will be transferred to Project Skyline, with 17 already assigned.
Stakeholder Contributions and Shareholding Structure
In the management company, Alpha Bank holds a 35% stake, while the remaining 65% is shared among Dimand, Premia Properties, and the EBRD. The EBRD invested €15 million last October for a 9.75% share in the new entity. Premia holds 16.25%, and the largest shareholder, Dimand, with 39%, will also take on the role of “maturing” the relevant redevelopment and enhancement projects for properties remaining under Skyline Real Estate’s control. Most of the properties, including around 270 residential units, are expected to be sold. Preliminary sale agreements are already in place, and given the rising property values since the agreement’s signing, the investment return is projected to exceed 25%.
Key Properties Under Development
One of the significant properties set for development is a complex located at the intersection of Aiolou and Sophocleous Streets. Plans include the creation of a mixed-use building primarily for residential and office purposes. The foundational buildings for the new entity will also include Alpha Bank’s office building in Kolonaki (Merlin 5), a 3,000 square meter building on Filellinon Street, and Alpha Bank’s former data processing center in Agios Stefanos, covering 25,000 square meters. The aim is to establish a substantial income-generating property base, which will be expanded with additional buildings in the coming years.
