Real Estate – Will Omonia square become a “gold mine” once again?

“When we decided to invest in the Bagion, the Omonia region was pumping out… “oil”, it was the number one commercial corner of Greece.” With this phrase, Panagiotis Monemvasiotis, head of the Veneti company, captured the glamor, but also the commercial value, which the heart of the Greek capital, Omonia Square once had.

However, in the 15 years that have passed since the Veneti chain leased the ground floor of the once emblematic hotel, at 18 Omonia Square, the shine, according to the CEO, was lost and “from No. 1 that Omonia was then today it has dropped down to No. 30.”

Nevertheless, the company invested 3 million euros for the upgrade and maintenance of the listed building, which is the work of the famed 19th century architect Ernst Ziller, while all this time it paid 2.5 million euros in rents, without being able to take advantage of the property commercially, something that happened since last year.

In addition, Veneti has been renting since 2012 the ground floor space in the twin building of the Bagion Hotel, and the Alexander the Great Hotel, located on the other corner of Athena Street and Omonia Square. However, the store in question, which used to operate under the Katseli bakery brand, is still closed, as the relevant approvals from the Central Council of Modern Monuments are pending.

The second opportunity of Omonia

So why does Veneti insist on investing in Omonia having leased NEON for 8 years? Because of the hotels that have opened or will open in the near future, is the answer.

The Bagion Foundation, which owns the two hotels Bagion and Alexander the Great, hopes for the same. In fact, after two failed attempts to join the NSRF, the Foundation is in the process of announcing a tender for their lease, with the prospect of creating hotels on the floors above the ground floor, as has happened in the past.

The management of Folli Follie also hopes for the upgrade of the square – hotel and not only – in order for the ongoing tender process for the development of the Minion property to end successfully.

It is recalled that most of the historic MINION on Patision Street, about 16,000 square meters, is included in the consolidation agreement of Folli Follie (has been given as a guarantee by the company to secure interim financing from Arena Investors). The value of the part of the property, which concerns Folli Follie, reaches approximately 25 million euros.

According to information, non-binding offers have been made, among others, by the real estate development company Dimand in a joint venture with Prodea Investments AEEAP and the Israeli chain Brown Hotels, which is considered the ruler of Omonia.

Israeli invasion

The Israelis already operate 3 hotels in Omonia: the Brown Acropol at number 1 on Piraeus Street, on Omonia Square, until the previous building – “ghost”, the DAVE Red Athens at the offices of the Attica Party Organization of the KKE at 25 Veranzerou Street and Lighthouse Athens in place of the former La Mirage, which is owned by the Aviation Equity Fund and has been closed since 2008.

The group has announced the acquisition of the Kubic Athens Smart Hotel, on Agiou Konstantinou Street.

According to hotelier Leon Avigad, co-founder of Brown Hotels, the hotel chain venture is not only an investment, it is a social and cultural change that takes place in Omonia, through the revival of the area in its former glory.

When does Moxy open?

In the coming months (early 2022) it is expected to complete the conversion into a hotel of Saroglio Megaron in Omonia. The investment for the new unit under the international brand of Moxy, which belongs to the Marriott group, is estimated at about 20 million euros.

Dimand, Prodea Investments AEEAP and the European Bank for Reconstruction and Development (EBRD) are behind the investment, after the long-term transfer of the property by the owners (Army Share Fund with 62% and Armed Forces Officers Club with 38%) .

This is an 8-storey building with an area of ​​11,300 sq.m., which was leased by the consortium for 25 years (with the right of extension for 25 years). Moxy will be the first green certified hotel.

12 hotels

A hotel is also being prepared at the junction of 18 Lykourgou and 34 Socratous streets, near Piraeus Street and Pl. Omonia. It is a four-star unit, which will result from the change of use and reconstruction of the existing building. This is an investment of approximately 9.7 million euros.

At the junction of Piraeus and Zenonosstreets  we find the four-star Omega Hotel owned by Chinese investors, while a seven-storey building at the junction of 21 Kaningos and Halkokondyli streets, owned by the Professional Insurance Fund for Insurance Assistants and the Insurance Hotel, is completely renovated.

A total of twelve hotel units will operate around the historic square.