Marfin acquires 50% of Attica Akinita real estate in Greece

Marfin Investment Group (MIG) announces the acquisition of a 50% participation in the company “Attica Akinita” (Attica Properties). The acquisition will take place via a share capital increase, in which the existing shareholders will waive their rights, and MIG will participate with EUR26 mln.

The transaction is expected to be completed in the next two months pending satisfactory for MIG completion of legal due diligence. Following the Share Capital increase the Company will submit application for conversion to a Real Estate Investment Company S.A. (ΑΕΕΑP) and its listing into the Athens Stock Exchange (ATHEX) targeting to raise in excess of EUR100 mln.

The company “Attica Akinita” was established in 1999 and it is the owner of a diversified portfolio of seven corporate real estate assets in the area of Attica, which are leased to high quality institutions (mainly banking groups). Since its inception the company’s portfolio has developed showing an approximate internal rate of return (IRR) of 21%.

The company “Attica Akinita” will form the main arm of MIG’s investment strategy in the area of real estate development.  The substantial know-how of the company’s executives combined with favorable tax treatment for AEEAPs (transaction tax exemption, income tax currently 0,5% on the assets) and its diversified operational platform, especially as this is expected to be enhance by the new legal framework, provides a very favorable outlook of the specific investment.

For the purposes of this investment, a detailed financial due diligence and property valuation of the company “Attica Akinita” was carried out.