National Bank of Greece has announced that it signed with Invel Real Estate (Netherlands) II BV for the sale and transfer of a 66% stake in subsidiary National Pangaea REIC at current valuations (NAV) for a total consideration of €653 million, which will take place once other conditions, formalities and approvals required to complete the transaction have been fulfilled.
The overall transaction includes a) cash payment of €161 million by Invel to the Bank, b ) contribution by Invel of an Italian company with property and net assets worth €73 million to a share capital increase through contribution in kind to be carried out by NBG Pangaea, c ) financing by NBG (through vendor financing) of the additional part of the consideration to be paid, against collateral, and d ) contribution by the Bank of real estate of net asset value of €72 million to the said share capital increase of NBG Pangaea REIC.
Upon completion of the transaction NBG will retain a 34% stake in NBG Pangaea REIC. In addition, it will continue to have control of NBG Pangea REIC for up to five years, appointing the majority of the members of the Board of Directors and the Investment Committee, and it will hold additional contractual rights.
The real estate and assets to be contributed by National Bank of Greece and Invel to NBG Pangaea REIC under the share capital increase have been appraised by qualified expert property valuers.
The transaction serves NBG’s strategy to further strengthen its capital position. It is estimated that the Bank’s capital adequacy ratio will be enhanced by around 40 basis points as a result of the transaction.
At the same time, this move serves to facilitate and prepare for the planned listing in 2015 of NBG Pangaea on the Athens Exchange, as per the provisions of the legal framework. Furthermore, NBG Pangaea’s real estate portfolio will be able to grow on the European level, thereby giving momentum to its investment program and leading to diversification of its real estate portfolio when the company is listed on the ATHEX.
Morgan Stanley & Co International plc acted as financial advisor to National Bank of Greece for the transaction.
Source: National Bank of Greece