Invel Real Estate (Netherlands) II B.V. (“Invel”), the investment firm focusing on real estate and distressed debt opportunities across Europe, has served a Call Option Exercise Notice to the National Bank of Greece (“NBG”) to acquire from NBG their 32.7% stake in NBG Pangaea REIC (“Pangaea”), the largest real estate investment company in Greece.
This follows the successful reorganisation of Invel’s stake in Pangaea in March 2018, bringing in the support of global private investment firm, Castlelake, L.P. and another major institutional investor.
Invel, alongside nominated entity CL Hermes Opportunities, L.P., will acquire the 32.7% stake in Pangaea for a total of €390 million. This is set to complete by 30 May 2019. NBG shall retain control of Pangaea until this time.
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Invel first acquired a 66% stake in Pangaea from NBG for €653 million in December 2013. Since then, Pangaea has grown to be the largest Real Estate Investment Company (“REIC”) in Greece by AUM, with a portfolio currently consisting of 345 assets with an appraised value of €1.7 billion and a NAV of €1.3 billion, while expanding its footprint into new markets such as Italy and Cyprus.
The call option exercise is pursuant to Clause 3.3a.2 of the Shareholders Agreement entered into between NBG, Invel, Invel Real Estate Partners Greece L.P, Invel Real Estate Partners Greece SAS, Invel Real Estate Partners Two Limited and NBG Pangaea REIC, in relation to Pangaea.
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.”