The project for the reconstruction of the emblematic and historic property of National Insurance, located at the intersection of Korai and Stadium streets, is currently on the “starting tracks”. This property is intended to house the new headquarters of the Piraeus Bank Group. It is the “plan b” developed and implemented by the banking group in collaboration with Dimand Real Estate, following last year’s decision not to activate the MOU signed with Lamda Development for the purchase of offices in the property in Helliniko, a deal that would have been worth a total of 150 million euros, had it proceeded.
The property of National Insurance was acquired a few months ago by Dimand Real Estate, which, after an agreement with Piraeus Bank, transferred it to the latter for the amount of 52 million euros, which also covers the financing that Dimand had secured for the acquisition cost of the property. Now, the property is owned by Piraeus, which will also finance the first phase of the upgrading works, based on the plan developed by Dimand, which in turn will derive additional revenues through the provision of services, a common practice when undertaking the design and redevelopment of third-party properties.
The building has a total area of 14,500 square meters. According to the design, it is set to be entirely reconstructed and transformed into a “green” office building, certified under LEED Gold, while the ground floor spaces are expected to be utilized as commercial stores. This investment is estimated to exceed 20 million euros. The property will house employees who are currently scattered across part of the 19 buildings that Piraeus Bank owns in the center of Athens. According to management estimates, the move to the new offices will reduce the group’s housing costs by 50%.
It is worth noting that the property has a significant historical footprint, as its basements housed the detention cells of the German occupiers during the occupation, and it also hosts the historic cinema “Astor.” Additionally, it features an exceptional arcade, which Dimand plans to utilize and highlight to boost visitor traffic to the property throughout the day. Notably, all historical uses will be preserved, including the cinema.
Certainly, the collaboration between Piraeus and Dimand is not limited to this specific building, as both parties are planning the joint development of a series of properties as part of the strategic cooperation announced a few weeks ago. Initially, the utilization of two additional properties is foreseen, the former property of Affi Lampropouloi at Kotzia Square, which currently houses a Notos.com store, as well as a 100-acre plot owned by Piraeus Bank at the port of Lavrio. This property allows for a total construction of 60,000 square meters. The initial phase involves the urban maturity of the property by Dimand, so that the relevant building permit can be issued. Once this occurs, Dimand is expected to acquire a stake in the company that controls the area, which Piraeus currently controls by over 70%. The area is expected to develop hotels, residential units, dining establishments, and recreational spaces, as Mr. Andriopoulos mentioned yesterday, “it will essentially be an extension of the city of Lavrio.”
The total development cost for the properties included in the initial phase of the agreement between the two parties is expected to hover around 500 million euros, as it involves projects with a total area of over 130,000 square meters. Regarding the timeline for the implementation of the projects, the first property is set to be delivered in September 2026, while the others will gradually follow, with a horizon extending to the end of the decade.