Attention is focused on Grevena today regarding electronic auctions, as it is the “day of Alfa Wood Pindos,” one of the largest timber industrial units. It is also the second most “expensive” auction – at least for this period – after the Hippodrome in Markopoulo, with the starting bid price increased to €23.86 million.
The main question, of course, is whether this time an investor will be found willing to give a “lifeline” to a unit almost ready to operate. This seems unlikely given that there was no interest in previous auctions when the price was significantly lower. Timing always plays a role, of course.
It should be noted that Alfa Wood Pindos has been in the midst of auctions since late 2019. In September 2021, it went up for auction with a starting price of €27,018,765, while in December 2022, the price had decreased to €17,562,197.80. However, both these auctions ended unsuccessfully.
Another auction was scheduled for January 24, 2024, with the starting price further reduced to €13,279,066. This was avoided as the debtor company filed an appeal, requesting that the foreclosure report be corrected regarding the valuation and starting bid price, increasing it to €35,000,000.
The Single-Member Court of First Instance of Grevena, with its decision issued on January 15, 2024, partially accepted the appeal, setting the price at €10,253,522 for the property with the buildings and €13,611,000 for the machinery, with the new total starting price at €23,864,522. With this increased starting price, it goes up for auction once again today, with Piraeus Bank as the auctioneer.
What’s on the Auction Block
The auction includes a plot of land located in the estate area of the Municipal District of Mavranaioi, Municipality of Theodoros Ziakas, Grevena, at “Magoula” with a total area of 107,646 square meters, on which the company’s industrial facilities are located. These consist of 34 buildings with a total area of 27,764.98 square meters, constructed at various times from 1987 to 2010. It should be noted that according to the appraisal report, there are also several unauthorized buildings. The plot is fenced, and the surrounding area is fully paved, covering approximately 23,500 square meters.
The rest of the plot is simply leveled with natural soil. Additionally, there is a weighbridge installation, as well as external water, sewage, and lighting networks. Along with the plot and the industrial buildings, the auction includes a multitude of machinery and tools.
According to the May 2023 appraisal report, the value of industrial properties in the broader area shows an upward trend. As highlighted, the market has generally thawed, and sales transactions are continuously taking place, while the supply of similar properties for sale is less than the demand, which appears moderate to high, resulting in upward pressure on their market values.
The main activities of Alfa Wood Pindos are the production, processing, and trade of primary and secondary timber products, mainly the production and trade of fiberboard, as well as the production, distribution, and use of electricity from RES or Combined Heat and Power (CHP) systems. It also engages in the wholesale trade of central heating items, mechanical stoves, and similar devices, woodworking machinery, and other general and specialized machines, devices, and equipment. Additionally, it is involved in the retail trade of boilers for central heating, air heaters or hot air distributors, and furniture trade.
However, according to the latest financial statement for the fiscal year 2022, the company’s turnover was only €7,866 compared to €530,224 in 2021. Furthermore, accumulated losses amounted to €38,258,333, and total liabilities to €29,242,808, most of which were bank loans.
The Parent Group
Alfa Wood Pindos belongs to Alfa Wood Group, the largest group in the domestic wood industry market today. A financially healthy company with strong performance. Alfa Wood’s journey began in 1981 when Antonis Adamopoulos and Christos Agorastos founded Alpha Wood S.A., which, with significant investments and successive acquisitions, became a major market player.
In this context, in 2004 they acquired the Grevena-based timber company “Pindos,” aiming to produce laminate floors, which were experiencing significant growth at that time. Thus, Alfa Wood Pindos S.A. emerged.
Their expansion strategy, however, did not stop there. The main target was the major market player, Shelman Group, founded in 1962 by Panagiotis Iliadis. In 2010, while the country was entering an economic crisis, Alfa Wood acquired 73% of Shelman for €11 million, making the Thessalian wood industry leader in the Greek wood and timber products market, and one of the largest manufacturing units in the Balkans. At that time, Alfa Wood, before the acquisition, based on 2008 figures, had sales of €47.4 million and pre-tax profits of €3.63 million.
With the acquisition of Shelman, it expanded significantly, acquiring the parent company with factories in Chalkida (where it also had a private port) and Komotini, as well as subsidiaries like the glue industry Chatziloukas S.A. in Komotini, Shelman Sofianos Parquet S.A. (50% share), a parquet production and installation company also active in Romania through Sofrom Exim S.A., Xylemporiki Patron S.A., and I. Tzilos S.A. in Glyka Nera, Attica.
However, it also “inherited” the enormous liabilities and the overstaffed workforce, leading to bankruptcy in 2014. It is worth noting that last December, Alfa Wood Group reacquired the wood production factory of Shelman in Komotini at auction through its subsidiary Hellenic Panel S.A. The group then announced that this investment was made to develop its commercial activities, aiming to maintain the largest wood production factory in Europe under Greek ownership.
