Pangaea REIC, the real estate investment trust owned by Invel Real Estate Partners and the National Bank of Greece SA, aims to raise about 1 billion euros ($1.4 billion) to invest in Greece and Italy, three people with knowledge of the matter said.
Pangaea, based in Athens, plans to issue bonds by the summer and offer shares to the public for the first time as early as October, according to the people, who asked not to be identified because the information is private. They declined to say what proportion of the proceeds each will account for.
Foreign investors are returning to Greece after a crisis that nearly pushed the country out of the euro, and the European Commission predicts the economy will grow for the first time in seven years in 2014. Greece’s last IPO was done by MIG Real Estate REIC in 2009. Regulators set a deadline of October 2015 for Pangaea’s IPO.
“International investors are increasingly focusing on Europe, with a special emphasis on peripheral markets,” said Javier Martinez-Piqueras, co-head of equity capital markets cash for Europe at UBS AG. Buyers think real estate in countries like Greece and Spain has hit the bottom of the cycle, he said.
Ellie Sweeney, a spokeswoman for Invel at Powerscourt in London, declined to comment.
Pacific Investment Management Co.’s Bill Gross, Quantum’s George Soros and billionaire John Paulson are among investors who bought Spain’s version of real estate investment trusts including Hispania Activos Inmobiliarios S.A. (HIS) this year, betting on a rebound after a six-year property slump.
The Athens Stock Exchange General Index has jumped 182 percent since reaching a 22-year low in June 2012. The Hellenic Republic’s bonds returned 23 percent in the first quarter, the best performance among 34 sovereign-debt markets tracked by Bloomberg World Bond Indexes.
Invel, a London-based real estate investment firm led by Christophoros Papachristophorou, bought a 66 percent stake in Pangaea in a December deal that valued the company at about 1 billion euros. Pangaea has since acquired real estate in Greece and Italy and currently has assets totaling 1.2 billion euros, the people said.
Papachristophorou is a former managing director at Deutsche Bank and global head of RREEF Opportunistic Investments.
IPOs in Europe have more than tripled by value in the first quarter from a year earlier to about $17 billion, data compiled by Bloomberg show.