Greece Banks Enlist Real Estate Assets of Funds: A Strategic Financial Move

Discover how Greece’s banks are leveraging assets from funds to strengthen their financial positions and enhance stability. 

In the intricate landscape of Greece’s real estate market, a notable shift is underway as banks pivot towards leveraging the assets held by investment funds. This strategic maneuver is primarily a response to the challenges faced by prospective homeowners in navigating the “My Home II” program, a situation reminiscent of its predecessor, “My Home I,” which still harbors a staggering 290 million euros in undistributed funds. 

Leading the charge is Attica Bank, which has embarked on a collaborative venture with Resolute Cepal Greece. This partnership aims to methodically introduce up to 780 properties into the market, all of which align with the stringent criteria established by the My Home II initiative. These properties are poised to be available for sale in the forthcoming months, potentially alleviating the pressing housing shortage that has plagued the region. 

Current estimates suggest that the real estate management companies associated with funds that have acquired nonperforming loans possess around 4,000 eligible homes. Should these properties be integrated into the market, they could significantly mitigate the existing housing deficit. Furthermore, this collaboration is not merely a philanthropic endeavor; it is strategically designed to bolster Attica Bank’s foothold in the mortgage sector while enhancing its retail banking capabilities. 

Eleni Vrettou, the CEO of Attica Bank, has articulated ambitious growth projections, anticipating an 18% increase in the mortgage loan portfolio by 2025, with aspirations for this figure to double by 2027 from its current valuation of €300 million. Among the 780 properties earmarked for sale, 150 are immediately transferable, while the remainder is expected to be gradually listed over the next six months, contingent upon the completion of necessary legalization and settlement procedures—an acceleration facilitated by the activation of the My Home II program.

Attica Bank’s comprehensive proposal for beneficiaries of the My Home II program, as delineated by Stelios Iliadis, the bank’s general manager of retail banking and asset management, encompasses a suite of preferential benefits. These include an enticing interest margin commencing from remarkably low levels (0.80% + Euribor), contingent upon the borrower’s creditworthiness and the extent of their personal investment. Additional perks offered by the bank comprise complimentary legal audits, technical and energy audit costs, targeted property availability assessments via a specialized platform, exclusive discounts on electricity and/or natural gas services from Volton, and an expedited process for evaluating and disbursing loan applications, complete with financing proposals for energy upgrades.

As Greece navigates the complexities of its real estate market, the collaboration between banks and investment funds may herald a new era of accessibility for prospective homeowners, all while enhancing the financial institutions’ market presence and operational efficacy.

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