The transformation of Athens Heart into "green" offices begins

The mall at Pireos Street was inaugurated in 2008 and despite the ambitious plans of the previous owner Pasal Development, it was hit by the economic crisis without ever reaching a satisfactory level of traffic and revenue. After its acquisition by Premia Properties, it will be reconstructed and transformed into a "green" office building complex.

With the building licence for the reconstruction of Athens Heart at 180 Pireos Street having been issued, what is expected to begin has to do with the conversion of the former shopping centre into a modern 26,500 sqm LEED Gold certified office complex, which will house the headquarters of the Independent Authority for Public Revenue (IARP). While by the end of June, the transfer of shares of the new company, Skyline Real Estate, to its new shareholders, Dimand and Premia, is expected to be completed in order to start the active management of the 573 property portfolio, worth €438 million.

In its new form, Athens Heart will be a bioclimatic building complex together with the new building to be constructed on the land adjacent to the shopping centre, also owned by Premia. The total investment cost of the project, from 20 million euros as originally planned, will eventually exceed 50 million euros due to the increase in interest rates and construction costs.

IARP is the new tenant

According to the lease agreement signed at the end of May between the Independent Authority for Public Revenue and Premia Properties' wholly owned subsidiary, Primalaft Athens, by the end of the second quarter of 2024, the reconstruction work is expected to be completed and the process of moving the IARP's headquarters will begin.

The lease agreement is for a 12-year term and the total annual rent amounts to EUR 4.382 million for the office space to be housed in the former Athens Heart, including 92 parking spaces. Additional revenues are also expected from the management of the additional approximately 500 parking spaces available in the 3 underground car parks of the existing building, which will be upgraded to meet modern electrification needs.

The projects of Premia

The Skyline project and the conversion of Athens Heart into office space are two major projects that Premia is in the process of implementing. Already from 2021, moreover, the company's new targeting involved further expansion in the logistics sector, with the acquisition of new warehouses and the tripling of the value of the properties it owned, from approximately 120 million euros in 2020 to 360 million euros.

Skyline Real Estate was born

By the end of June, the transfer of the shares of the new company, Skyline Real Estate, to its new shareholders, Dimand and Premia, is expected to be completed in order to start the active management of the portfolio of 573 properties, worth 438 million euros, following the agreement between the Alpha Bank groups and the Dimand-Premia Properties consortium. Alpha Bank retains a 35% stake and the Dimand-Premia consortium retains 65% (of the 65% stake, Dimand's stake is 75% and Premia's is 25%).

Some of these properties will be sold, while others will be kept by investors for development. Among them are the office building where the bank has a branch and the offices of Alpha Finance on Merlin Street in Kolonaki.

Also, the property at the junction of Stadiou and Korai Streets, on Korai Square (surface area of 10,000 square meters) where this and another Alpha Bank building (in the old headquarters of Emporiki Bank on Sofokleous Street with a surface area of over 30,000 square meters). These two properties are most likely to be used for hotel and office use with commercial shops respectively and will remain with their current owners for use.