Presentation on the Greek Real Estate Investment Market
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Transcript of Presentation on the Greek Real Estate Investment Market
Presentationon the Greek Real Estate
Investment Market
New York
Monday 30th October 2000
Agenda
• Greece in a European Economy
• Greece in European Property Market
• Greek Real Estate Market Overview
• Why invest in Greece?
Greece in a European Economy
GDP Growth
-5 0 5 10 15 20 25 30
Ireland
Poland
Finland
Hungary
Spain
N'lands
Greece
Portugal
Belgium
Sweden
Norway
UK
France
Denmark
Austria
Turkey
Swit'land
Germany
Italy
Russia
Czech Republic
Total Growth (%) over 1997-1999Source: Consensus Forecasts
European inflation
0
5
10
15
20
25
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Greece Italy Portugal Spain France UK
%
Source : OECD (1990-9), Consensus Forecasts (2000-1)
European interest rates
0
5
10
15
20
25
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
Greece Italy Portugal Spain France UK
%
Source : OECD
Greek GDP growth and inflation
GDP growth (%)
Sources: OECD, Consensus Forecasts
-2
-1
0
1
2
3
4
5
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001
0
5
10
15
20
25
GDP Inflation
Inflation (%)
Greece in European Property Market
European Cross-BorderDirect Investment in Real Estate - by Origin
0 €2 €4 €6 €8 €
10 €12 €14 €16 €18 €20 €
Billions Euro
1997 1998 1999 2000
Ireland
Other
UK
Scandinavia
Far East
Netherlands
MiddleEast
Germany
N.America
Source DTZ Research
Prime office rents
0100200300400500600700800900
1000Brussels
Istanbul
Lisbon
Vienna
Amsterdam
Milan
Madrid
Dublin
Athens
Stockholm
Paris
London (City)
Mid-2000
Source: DTZ Research
Euro/sq.m/annum
European prime office yields (current)
0
12
34
5
67
89
10
%
Dublin
Madrid
Paris
Stockholm
Frankfurt
Milan
London (city)
Vienna
Amsterdam
Brussels
Lisbon
Athens
Mid-2000
Source: DTZ Research
European office yield trends
0
2
4
6
8
10
12
14
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 mid-2000
%
Paris
Athens
Milan
Rome
Barcelona
Madrid
Lisbon
London
Source: DTZ Research
0 50 100 150 200 250 300 350
Greece
Belgium
Italy
Germany
Portugal
Switzerland
Spain
EU AVERAGE
Austria
Eire
UK
France
N'lands
Sweden
Source : Various
Gross Lettable Area (sq.m) per 1,000 inhabitants
European shopping centre density 1999
Greece Real Estate Market Overview
A Changing Market
• Entry to Euro-Zone – Jan 2001
• Lowering of interest rates
• Infrastructure Projects
– New Airport
– Greater Athens Ring Road and other road projects
– Expansion of Metro System
• 2004 Olympic Games and associated projects
• Legal Framework and securitisation through mutual funds
Characteristics
• Traditionally owner-occupied• High State ownership – although increasing
disposals through privatisations • Immature Investment Market• Historical lack of transparency and information• Currently increasing interest from domestic and
international investors.
The Attica market
Development opportunities
• Central Athens undersupplied with quality product• Urban regeneration in Central Athens and Pireaus.• Demand for large spaces cannot be satisfied • Development activity continues in prime locations.• New Airport - Mesoghia Valley• Olympic Games in 2004 and associated infrastructure
projects• Interest from major foreign players: Chelverton, Lend
Lease, Sonae, TrizecHahn, Rodamco, Hindes• East Coast of Attica – expansion of ports
Source: DTZ Research
Why Invest in Greece?
International Real Estate Cycle
Source: Deutsche Bank Real Estate Private Equity
Why invest in Greece ?
• Entry into the Euro in Jan 2001• High rate of economic growth• Reducing interest rate• Widening yield gap between bonds and real estate returns• Major EU Investment Program• Olympic Games 2004• Substantial Infrastructure Improvements• Positive rental growth prospects• Legal framework becoming more ‘investor friendly’ • Indirect property investment vehicles emerging in mutualisation• Sale and leaseback opportunities• Emerging market performance within the EU
Source: DTZ Research