Arbitrage Real Estate had been appointed by the Mayor of Piraeus to provide a development appraisal of the Tower of Piraeus. The 22 floors and c.32,100m² (GLA) landmark building is located in the heart of Piraeus port and have stayed mainly derelict ever since its erection in early 70’s.
Arbitrage valuation team undertook the initial planning and legal assessment, the market research related to the identified established uses in the wider area and the onsite inspection. It validated the maintenance status of the property and noted a minimum list of immediate remediation actions. The findings included current status analysis, reference in the identified barriers and restrictions of the future development of the property. It also included a quantitative analysis of the prevailing use scenarios. Following the SWOT analysis of each development scenario, the valuation team concluded the highest and best solution based on the future generated cash flows.
The final delivered report included a detailed description of the property and the area with reference to future perspectives, a real estate market analysis with reference to comparable leases, sales and yields. It also included a risk assessment of the final adopted development scenario and a full development appraisal modelling, encompassing a feasibility assessment with sensitivity analysis.