Hedge fund manager Kyle Bass believes Greece is finally turning the corner on the financial crisis and that now is the time to invest.
The founder and chief investment officer of Hayman Capital Management, which manages an estimated USD 815,000,000 in assets, believes that foreign investors are waiting for a significant political shift to take place next year. According to Mr Bass, a snap election in 2018 will lead to a change in government, with the more moderate New Democracy under the leadership of Kyriakos Mitsotakis in the driving seat.
An estimated EUR 15 bn bank deposits will return to the Greek banks and investor’s confidence will return, with the stock and bond markets expected to jump. According to Mr Bass, the sectors that global investors are considering are real estate, energy and tourism, adding that Pimco, Lonestar and KKR are just some of the key players currently analysing commercial property in Greece. Notable funds such as BlackRock, Fidelity Investments and Vanguard have already made moves in the Greek stock market.
At Fractal we welcome such encouraging news. Entry level real estate investments in the range of EUR 70,000 – 100,000 may not be in the crosshairs of the major funds, but their imminent large-scale investments will be the main forces driving real estate prices up. Thus, whoever gets in early will benefit the most.