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Retail heavyweight Jumbo has expanded its footprint in Greece, finalizing a €10.8 million cash deal to buy out the VESO MARE shopping center in Patras from Eurobank.
Under the agreement, Jumbo acquired 100% of Eurobank’s subsidiary Herald 2, the company that owns the waterfront mall on Akti Dymaion, where Jumbo already operates one of its stores. The purchase, paid entirely from the firm’s cash reserves, gives Jumbo full control of the mall’s 196 million shares, valued at €0.04 each.
Why it matters:
The move marks another step in Jumbo’s strategy to own the spaces it operates in, a shift that could save on rental costs and give it more flexibility in managing its retail footprint. Owning the property also allows the company to capitalize on any future rise in real estate value in Patras, a growing regional hub.
The upside:
- Full ownership means greater control over operations and long-term cost savings.
- The mall’s location in Patras gives Jumbo a strategic foothold in western Greece, especially for logistics and regional expansion.
- Paying in cash shows financial strength and liquidity, a sign of confidence in the company’s stability.
The downside:
- Real estate ownership comes with maintenance, management, and market risks, especially if retail traffic dips.
- With Greece’s economy still balancing between growth and uncertainty, tying up cash in property could limit flexibility for future investments.
Still, industry observers see the move as part of Jumbo’s broader plan to tighten its grip on the Greek retail landscape, turning its stores from tenants into landlords.
More developments could follow as the company continues scouting for similar opportunities across its network.
*Source: Money Review
