The power utility PPC, under pressure to improve its financial standing, plans to establish two real estate subsidiaries to raise 150 million euros within 2020 by capitalizing on its enormous property portfolio, chief executive Manolis Panagiotakis has told company shareholders.
The power utility’s real estate assets may exceed 1.1 billion euros in book value, as Panagiotakis informed, but their actual market value, and most importantly, the method through which this property can be utilized, remains unclear.
This is not the first time PPC has declared an intention to utilize its property. Panagiotakis had also referred to such a prospect in February.
However, a loosening of ties with the Greek State, holding a 51 percent share of PPC, is needed if such a prospect can be pursued, as was pointed by the chief executive yesterday.
A survey conducted in 2006 to estimate PPC’s real estate portfolio determined it consists of 6,938 properties measuring a total of 413.2 million square meters, including property belonging to power grid operator IPTO, a member of the PPC corporate group at the time.
This survey had concluded that 3,293 of these properties had a commercial value. The book value of all 6,938 properties was estimated at 1.28 billion euros by the survey.