BABIS VOVOS INTERNATIONAL TECHNICAL S.A.
Ordinary Annual General Meeting Decisions.
We would like to inform you that during BVIC's Annual General Meeting that took place on June 27th at 11.00 a.m. in the Ballroom Hall of the Hotel KING GEORGE II PALACE (Syntagma Square), the following issues were discussed, as announced in the Board of Directors' invitation to the AGM of the 02.06.2008:
Issue 1st: Submission and approval of the annual financial statements (consolidated and company) for the fiscal year 2007 under International Financial Reporting Standards (IFRS), of the accompanying Board of Directors' Management Review and of the Certified Auditors - Accountants Report as well as approval of the profit distribution.
Issue 2nd: Release the members of the Board of Directors from any responsibility for compensation for the results of the fiscal year 2007.
Issue 3rd: Election of one ordinary and one deputy Certified Auditor - Accountant for the audit of the annual financial statements and consolidated financial statements of the fiscal year 2008 and determination of their fees.
Issue 4th: Extending permission to the members of the BoD, in accordance with the article 23 par. 1 of the C.L. 2190/1920, as in force, to participate in the Board of Directors or the Management of the companies in the Group that have the same or similar objectives.
Issue 5th: Approval of the remuneration of the Board of Directors, in accordance with the article 24 par. 2 of the C.L. 2190/1920, as in force, for delivering services to the company for the fiscal year 2007 and pre-approval of the Board of Directors' remuneration for the fiscal year 2008.
Issue 6th: Amendment of the company's articles of association in order to comply with the provisions of C.L. 2190/20 as in force following its amendment by L. 3604/2007. Specifically, amendment of the articles 6, 7, 9, 16, 18, 20, 22, 23, 24, 25, 26, 28, 29, 30, 32, 33, 36, 38, 39, 40, 42, 44, 45 as well as any other article suggested and decided by the Shareholders during the General Meeting.
Issue 7th: Various announcements and information to the shareholders for the sales and activities of the subsidiary company "BABIS VOVOS - INTERNATIONAL CONSTRUCTION S.A. & CO. GENERAL PARTNERSHIP" as well as information to the shareholders and making a decision for its absorption.
During the General Meeting, 66 shareholders were present (personally or through representatives, with a total of 8 attendees) that held a total of 15,592,900 shares, or 45.9560% of the total shares of 33,930,000. The decisions regarding the issues of the agenda are as follows:
Issue 1st: The annual financial statements (consolidated and company) for the fiscal year 2007 under International Financial Reporting Standards (IFRS), of the accompanying Board of Directors' Management Review, of the Certified Auditors - Accountants Report and the results distribution were submitted and approved.
The AGM decided that the Company will not distribute dividend to its shareholders for the fiscal year of 2007. This is a result of limited property sales in 2007 in line with the Group's strategy of retaining most of its income producing properties, which are own-developed, and the necessity of extensive capital expenditure in order to finance the development pipeline.
Issue 2nd: The release of the members of the Board of Directors from any responsibility for compensation for the corporate actions of the fiscal year 2007 was approved.
Issue 3rd: An ordinary and a deputy Certified Auditor - Accountant were elected for the audit of the annual financial statements and consolidated financial statements of the fiscal year 2008, specifically: Ordinary: Psaltis Marios of Thomas, Certified Auditor - Accountant of the company PRICEWATERHOUSECOOPERS S.A. resident of Paleo Psychiko in Attiki at 26 Palama Street, with ID No. 294744/24-03-2005 issued by the Foreigners Centre of Pallini and S.O.E.L. Reg. No 38801. Deputy: Kyriakos Riris of George, Certified Auditor - Accountant of the company PRICEWATERHOUSECOOPERS S.A. resident of Dionysos in Attiki at 50 Kairi Avenue, with ID No. 176141 / 05-08-1999 issued by the Foreigners Centre of Pallini and S.O.E.L. Reg. No 12111. Their fee will be defined and approved by the Supervisory Board of Certified Auditors - Accountants in accordance with the provisions of the Institute of Certified Auditors - Accountants.
Issue 4th: Permission was extended to the members of the BoD, in accordance with the article 23 par. 1 of the C.L. 2190/1920, as in force, to participate in the Board of Directors or the Management of the companies in the Group that have the same or similar objectives.
Issue 5th: Remuneration for the independent members of the Board of Directors, for the participation at the BoD meetings for the fiscal year 2007, of ? 66,666.64 as well as fees for civil engineer studies amounting to ? 1,279,633.74 plus VAT i.e. total euro 1,522,764.15 were approved. Remuneration for the independent members of the BoD of up to euro 67,000 as well as fees for civil engineer studies of up to euro 2,000,000 for the fiscal year 2008 were pre-approved.
Issue 6th: The amendment of the company's articles of association in order to comply with the provisions of C.L. 2190/20 as in force following its amendment by L. 3604/2007 was approved. Specifically, the articles 6, 7, 9, 16, 18, 20, 22, 23, 24, 25, 26, 28, 29, 30, 32, 33, 36, 38, 39, 40, 42, 44, 45 of the company's articles of association were amended in order the company to operate effectively and in compliance with the new provisions of L.3604/2007.
Issue 7th: The Chairman informed shareholders regarding the sales and activities of the subsidiary Babis Vovos International Construction S.A. and Co G.P. The AGM decided not to absorb its subsidiary Babis Vovos International Construction S.A. and Co G.P., until there is more favorable corporate tax legislation and the matter will be discussed again in a following General Meeting.
Various Announcements: Babis Vovos, Chairman of the Board of Directors of BVIC, informed the shareholders for the company's progress and the projects that were completed and specifically stated the following:
HELEX
In 2007 we completed the high profile Hellenic Exchanges Complex. This project entailed the construction of a 6,700 sqm office building for the use of the Hellenic Exchanges, as well as two additional buildings of a total Gross Lettable Area (GLA) of 17,000 sqm which BVIC sold. Specifically, BVIC sold a building of 5,000 sqm to Allianz S.A. for euro 17.5 million and a building of almost 12,000 sqm to KanAm Grund for euro 47.1 million. These sales generated revenue of euro 53.5 million for the Group during the year. The development of the new Athens Stock Exchange confirms the Group's leading position in the office property market. Furthermore, the project contributes to the redevelopment and regeneration efforts that are taking place in the broader area of Votanikos.
VOTANIKOS SHOPPING MALL
Additionally, we have made significant progress in terms of implementing the growth strategy we embarked upon in 2006, accessing a new market for us: the high growth retail real estate market. With the Votanikos shopping mall, we are creating the right product for the retail market in Athens, which is one of the most underdeveloped in the broader Eurozone.
During 2006, Babis Vovos International Construction S.A. signed the final purchase agreement for the assets owned by ETMA S.A. and HELLATEX S.A., in the area of combined urban regeneration and development of Votanikos. This agreement refers to a total land surface of approximately 100,000 sqm, located in the district of Elaionas in the municipality of Athens. The aforementioned land plots are located within the borders of the Metropolitan intervention and combined urban regeneration and development of the areas of Alexandras Avenue and Votanikos, according to L.3481/2006. According to the provisions of the aforementioned law, the company granted 57% of the total surface to the municipality of Athens ensuring the respective to the total surface building coefficient. Company management has not yet decided for the way of exploitation of the property which is classified under investment property.
During the first quarter of 2007, the demolition permit concerning the existing buildings was issued. The demolition has started during April 2007 and is already completed. At the beginning of July 2007, the excavation and retaining wall structure works permit has also been issued and the respective works are currently completed. During March 2008, the construction permit concerning part of the underground parking area has been issued. The respective building permit for the shopping mall with 70,000 sqm of gross lettable area is expected to be issued shortly since all the relevant studies are already approved with the exception of the environmental study which is still pending but expected to be approved shortly.
340 SYGGROU AVENUE
The retail and office development at 340 Syggrou Avenue, which is already completed except from the interior works which will be finalized according to the tenants' needs. We have signed a lease agreement with Media Markt as anchor tenant for the retail space and we are in the final stage of the agreement to lease the remaining space of the building. The development is anticipated to generate close to euro 4.5 million in annual lease revenue and close to ? 55 million NAV creation. We also have ? 80 million in terms of financing in place, with a 20 year sale and leaseback agreement that we signed in January 2008. Since we acquired the land plot, values on Syggrou Avenue have increased and therefore we are very pleased with the returns that the property will generate.
HOTEL DEVELOPMENTS
The other two projects of strategic importance to the Group are the hotel developments in Poros and in Sounio, representing 35,000 sqm under construction on land plots of 147,000 sqm.
SOUNIO HOTEL DEVELOPMENT
During January 2008, the last one of the three building permits necessary for the development of three five star hotel units located on a sea-side plot owned by the Group, with a total above ground area of 12,000 sqm was issued. The development is expected to be completed during 2009.
POROS TOURIST DEVELOPMENT
The tourist development in Poros is progressing well, the semi-developed residential units of 18,000 sqm are being completed, whilst the hotel unit of 4,700 sqm will be refurbished. The development cost for the Group as at 31 December 2007, reached euro 10 million, with an anticipated total cost in the area of euro 25 million, by the end of 2008 when the project is scheduled for completion.
These projects underline the Group's commitment for expansion in the tourist development sector, while the land plots' prime locations have already attracted the interest of Greek and foreign hotel operators.
RESIDENTIAL UNITS AT MORTERO N. ERYTHREA
The development of 18 detached residential units, with a total area of 3,000 sqm, on a land plot of 7,396.02 sqm (Building Block 270) in the municipality of N.Erythrea, is expected to be completed within 2008. Sale agreements for eight of these residential units have already been signed. Additionally, the development of 27 detached residential units, with a total area of 4,400 sqm, on a land plot of almost 11,000 sqm (Building Block 271) in the municipality of N.Erythrea, is expected to be completed in 2008.
Aris Vovos, CEO of BVIC, informed the shareholders for the company's financial results and specifically stated the following:
It is my pleasure to be able to share with you a strong set of results for 2007, as we advanced our development programme and secured additional debt for the Group to be able to meet its development financing requirements, while continuing to generate significant growth in our recurring lease revenue. In 2007, our NAV per share before deferred tax decreased by 2% year-on-year to euro 19.97. This was due to the fact that no investment properties under construction were completed during 2007 and there were limited revaluation gains during the year. In 2008, the Group expects an NAV contribution of almost ?1.6 per share from the completion of the commercial center at 340 Syggrou Avenue. Furthermore, the NAV contribution from the completion of Poros will enable us to achieve double digit NAV growth. We believe that our strategy of focusing on the prime office market, while taking advantage of opportunities in the retail and tourist development sectors, will generate strong growth in our net asset value in the coming years.
BVIC Group's revenue increased by 81% year-on-year in 2007 to ? 101 million. This was mainly attributable to an increase in development and sales revenue in 2007 vs 2006 by 259% to euro 56 million. The sale of two buildings under construction at the HELEX complex generated euro 53.5 million in 2007, according to the percentage of construction completed. The remaining revenue stemmed from the sale of residential properties at the complexes located at Patmou and Agrafon Str (euro 1.6 million) and at Mortero N. Erythrea (euro 0.7 million).
The Group's rental revenue increased by 13% in 2007 to euro 44.1 million, mostly as a result of new lease agreements that came into effect during the year from the Delta Falirou Complexes that were delivered in 2006. Additionally, rent adjustments of approximately 4%, on the existing lease agreements that include an annual upward revision based on Greek CPI plus 100 basis points provided generated like for like rental growth for the Group. In a strong inflationary environment such as that of Greece is experiencing today, this should give rise to rent adjustments of over 5% in 2008.
The completion and leasing of 340 Syggrou Avenue during 2008 is anticipated to add approximately euro 4.5 million in rental revenue in 2009, which is an increase of 10% in the Group's rental revenue. The contribution of the Votanikos shopping mall in 2009 is expected to contribute euro 35 million in rental revenue, therefore we anticipate that the Group's rental revenue will have almost doubled in 2010.
BVIC Group EBITDA stood at euro 24 million in 2007, compared to euro 146 million in 2006. This was mainly driven by a net gain from fair value adjustment on investment properties of euro 5 million in 2007, compared to a euro 139 million net gain in 2006. During 2007, the revaluation of the Votanikos land plot, based on the increase in values in the area stemming from the infrastructural works being carried out, as well as the permits obtained by the Group, led to a revaluation gain of approximately euro 35 million. The revaluation of the land plot at Syggrou Avenue, based on recent transactions demonstrating a rise in prices in the area, led to a euro 3 million revaluation gain. The above revaluation gain were almost entirely offset mainly by a decrease in the value of BVIC's sale and leaseback and Built Operate Transfer portfolio, that had a revaluation loss of euro 32m, stemming from an increase in the discount rate to 6% for the sale and leaseback and 6.8% for the BOT, due to the rising interest rate environment.
The Group's net finance expenses increased by 34% in 2007 vs 2006 to euro 35 million, due to an increase in interest rates and additional debt. These led to a loss after tax for the year of euro 8 million, compared to a profit after tax of euro 85 million during 2006.
BVIC's investment property portfolio stood at euro 1,232 million, as at 31 December 2007, a 3 % increase from the 2006 value of euro 1,195 million. The increase in investment properties stemmed partially from additional construction costs accumulated for projects under development, the most significant of which were those incurred for the commercial development at 340 Syggrou Ave, the shopping mall at Votanikos and the tourist development at Poros. In total, there was an increase of euro 27 million in investment properties in 2007, that was accumulated construction cost driven. The revaluation gains driven increase of investment property amounted to euro 5 million.
The Group has been successful in securing new borrowing during the year in order to meet its development costs. These include new loan facilities to cover the development costs at Votanikos of euro 59 million, a euro 20 million loan for the development of Sounio, and euro 9 million for the Poros development. BVIC has secured a line of credit for a further euro 61 million for Votanikos, that has not yet been drawn down. The new sale and leaseback agreement of euro 80 million signed for the development at 340 Syggrou Ave has not been reflected in the Group's balance sheet as at 31 December 2007 since it was signed during January 2008.
During 2007, the company proceeded with the refinancing of four of its sale and leaseback agreements, based on the rental growth that has occurred over the last few years from the lease agreement adjustment of Greek CPI plus 100 bps. This resulted in an increase of the value of the assets at 6 Pouliou Str., 95-97 Kifissias Avenue (subject to two sale and leaseback agreements), and 221 Kifissias Avenue, amounting to a total additional notional amount of euro 48 million for these assets.
Moreover, the Group lowered its future interest expenses on the existing sale and leaseback agreements for these assets. The interest rate for the sale and leaseback for 6 Pouliou Str decreased from Euribor 1 month plus 2.20% spread to Euribor 1 month plus a spread of 1.80%. The interest rate for 95-97 Kifissias Avenue decreased from Euribor 3 month plus 2.50% spread to a spread of 2.00% over Euribor 1 month as far as the SLB agreement with Alpha Leasing is concerned, while the interest rate for 95-97 Kifissias Avenue decreased from Euribor 3 month plus 2.50% spread to a spread of 1.80% over Euribor 1 month as far as the SLB agreement with Piraeus Leasing is concerned. Additionally, the interest rate for 221 Kifissias Avenue from Euribor 1 month and 285 bps decreased to Euribor 1 month plus 180 bps.
We are committed to creating value for our shareholders, during 2007 we concentrated our efforts on investing for future growth, and we believe that we are well positioned to achieve excellent returns in the coming years.
After covering all the issues of the agenda and since no other issues were raised, the meeting was finalized.
Issue 1st: Submission and approval of the annual financial statements (consolidated and company) for the fiscal year 2007 under International Financial Reporting Standards (IFRS), of the accompanying Board of Directors' Management Review and of the Certified Auditors - Accountants Report as well as approval of the profit distribution.
Issue 2nd: Release the members of the Board of Directors from any responsibility for compensation for the results of the fiscal year 2007.
Issue 3rd: Election of one ordinary and one deputy Certified Auditor - Accountant for the audit of the annual financial statements and consolidated financial statements of the fiscal year 2008 and determination of their fees.
Issue 4th: Extending permission to the members of the BoD, in accordance with the article 23 par. 1 of the C.L. 2190/1920, as in force, to participate in the Board of Directors or the Management of the companies in the Group that have the same or similar objectives.
Issue 5th: Approval of the remuneration of the Board of Directors, in accordance with the article 24 par. 2 of the C.L. 2190/1920, as in force, for delivering services to the company for the fiscal year 2007 and pre-approval of the Board of Directors' remuneration for the fiscal year 2008.
Issue 6th: Amendment of the company's articles of association in order to comply with the provisions of C.L. 2190/20 as in force following its amendment by L. 3604/2007. Specifically, amendment of the articles 6, 7, 9, 16, 18, 20, 22, 23, 24, 25, 26, 28, 29, 30, 32, 33, 36, 38, 39, 40, 42, 44, 45 as well as any other article suggested and decided by the Shareholders during the General Meeting.
Issue 7th: Various announcements and information to the shareholders for the sales and activities of the subsidiary company "BABIS VOVOS - INTERNATIONAL CONSTRUCTION S.A. & CO. GENERAL PARTNERSHIP" as well as information to the shareholders and making a decision for its absorption.
During the General Meeting, 66 shareholders were present (personally or through representatives, with a total of 8 attendees) that held a total of 15,592,900 shares, or 45.9560% of the total shares of 33,930,000. The decisions regarding the issues of the agenda are as follows:
Issue 1st: The annual financial statements (consolidated and company) for the fiscal year 2007 under International Financial Reporting Standards (IFRS), of the accompanying Board of Directors' Management Review, of the Certified Auditors - Accountants Report and the results distribution were submitted and approved.
The AGM decided that the Company will not distribute dividend to its shareholders for the fiscal year of 2007. This is a result of limited property sales in 2007 in line with the Group's strategy of retaining most of its income producing properties, which are own-developed, and the necessity of extensive capital expenditure in order to finance the development pipeline.
Issue 2nd: The release of the members of the Board of Directors from any responsibility for compensation for the corporate actions of the fiscal year 2007 was approved.
Issue 3rd: An ordinary and a deputy Certified Auditor - Accountant were elected for the audit of the annual financial statements and consolidated financial statements of the fiscal year 2008, specifically: Ordinary: Psaltis Marios of Thomas, Certified Auditor - Accountant of the company PRICEWATERHOUSECOOPERS S.A. resident of Paleo Psychiko in Attiki at 26 Palama Street, with ID No. 294744/24-03-2005 issued by the Foreigners Centre of Pallini and S.O.E.L. Reg. No 38801. Deputy: Kyriakos Riris of George, Certified Auditor - Accountant of the company PRICEWATERHOUSECOOPERS S.A. resident of Dionysos in Attiki at 50 Kairi Avenue, with ID No. 176141 / 05-08-1999 issued by the Foreigners Centre of Pallini and S.O.E.L. Reg. No 12111. Their fee will be defined and approved by the Supervisory Board of Certified Auditors - Accountants in accordance with the provisions of the Institute of Certified Auditors - Accountants.
Issue 4th: Permission was extended to the members of the BoD, in accordance with the article 23 par. 1 of the C.L. 2190/1920, as in force, to participate in the Board of Directors or the Management of the companies in the Group that have the same or similar objectives.
Issue 5th: Remuneration for the independent members of the Board of Directors, for the participation at the BoD meetings for the fiscal year 2007, of ? 66,666.64 as well as fees for civil engineer studies amounting to ? 1,279,633.74 plus VAT i.e. total euro 1,522,764.15 were approved. Remuneration for the independent members of the BoD of up to euro 67,000 as well as fees for civil engineer studies of up to euro 2,000,000 for the fiscal year 2008 were pre-approved.
Issue 6th: The amendment of the company's articles of association in order to comply with the provisions of C.L. 2190/20 as in force following its amendment by L. 3604/2007 was approved. Specifically, the articles 6, 7, 9, 16, 18, 20, 22, 23, 24, 25, 26, 28, 29, 30, 32, 33, 36, 38, 39, 40, 42, 44, 45 of the company's articles of association were amended in order the company to operate effectively and in compliance with the new provisions of L.3604/2007.
Issue 7th: The Chairman informed shareholders regarding the sales and activities of the subsidiary Babis Vovos International Construction S.A. and Co G.P. The AGM decided not to absorb its subsidiary Babis Vovos International Construction S.A. and Co G.P., until there is more favorable corporate tax legislation and the matter will be discussed again in a following General Meeting.
Various Announcements: Babis Vovos, Chairman of the Board of Directors of BVIC, informed the shareholders for the company's progress and the projects that were completed and specifically stated the following:
HELEX
In 2007 we completed the high profile Hellenic Exchanges Complex. This project entailed the construction of a 6,700 sqm office building for the use of the Hellenic Exchanges, as well as two additional buildings of a total Gross Lettable Area (GLA) of 17,000 sqm which BVIC sold. Specifically, BVIC sold a building of 5,000 sqm to Allianz S.A. for euro 17.5 million and a building of almost 12,000 sqm to KanAm Grund for euro 47.1 million. These sales generated revenue of euro 53.5 million for the Group during the year. The development of the new Athens Stock Exchange confirms the Group's leading position in the office property market. Furthermore, the project contributes to the redevelopment and regeneration efforts that are taking place in the broader area of Votanikos.
VOTANIKOS SHOPPING MALL
Additionally, we have made significant progress in terms of implementing the growth strategy we embarked upon in 2006, accessing a new market for us: the high growth retail real estate market. With the Votanikos shopping mall, we are creating the right product for the retail market in Athens, which is one of the most underdeveloped in the broader Eurozone.
During 2006, Babis Vovos International Construction S.A. signed the final purchase agreement for the assets owned by ETMA S.A. and HELLATEX S.A., in the area of combined urban regeneration and development of Votanikos. This agreement refers to a total land surface of approximately 100,000 sqm, located in the district of Elaionas in the municipality of Athens. The aforementioned land plots are located within the borders of the Metropolitan intervention and combined urban regeneration and development of the areas of Alexandras Avenue and Votanikos, according to L.3481/2006. According to the provisions of the aforementioned law, the company granted 57% of the total surface to the municipality of Athens ensuring the respective to the total surface building coefficient. Company management has not yet decided for the way of exploitation of the property which is classified under investment property.
During the first quarter of 2007, the demolition permit concerning the existing buildings was issued. The demolition has started during April 2007 and is already completed. At the beginning of July 2007, the excavation and retaining wall structure works permit has also been issued and the respective works are currently completed. During March 2008, the construction permit concerning part of the underground parking area has been issued. The respective building permit for the shopping mall with 70,000 sqm of gross lettable area is expected to be issued shortly since all the relevant studies are already approved with the exception of the environmental study which is still pending but expected to be approved shortly.
340 SYGGROU AVENUE
The retail and office development at 340 Syggrou Avenue, which is already completed except from the interior works which will be finalized according to the tenants' needs. We have signed a lease agreement with Media Markt as anchor tenant for the retail space and we are in the final stage of the agreement to lease the remaining space of the building. The development is anticipated to generate close to euro 4.5 million in annual lease revenue and close to ? 55 million NAV creation. We also have ? 80 million in terms of financing in place, with a 20 year sale and leaseback agreement that we signed in January 2008. Since we acquired the land plot, values on Syggrou Avenue have increased and therefore we are very pleased with the returns that the property will generate.
HOTEL DEVELOPMENTS
The other two projects of strategic importance to the Group are the hotel developments in Poros and in Sounio, representing 35,000 sqm under construction on land plots of 147,000 sqm.
SOUNIO HOTEL DEVELOPMENT
During January 2008, the last one of the three building permits necessary for the development of three five star hotel units located on a sea-side plot owned by the Group, with a total above ground area of 12,000 sqm was issued. The development is expected to be completed during 2009.
POROS TOURIST DEVELOPMENT
The tourist development in Poros is progressing well, the semi-developed residential units of 18,000 sqm are being completed, whilst the hotel unit of 4,700 sqm will be refurbished. The development cost for the Group as at 31 December 2007, reached euro 10 million, with an anticipated total cost in the area of euro 25 million, by the end of 2008 when the project is scheduled for completion.
These projects underline the Group's commitment for expansion in the tourist development sector, while the land plots' prime locations have already attracted the interest of Greek and foreign hotel operators.
RESIDENTIAL UNITS AT MORTERO N. ERYTHREA
The development of 18 detached residential units, with a total area of 3,000 sqm, on a land plot of 7,396.02 sqm (Building Block 270) in the municipality of N.Erythrea, is expected to be completed within 2008. Sale agreements for eight of these residential units have already been signed. Additionally, the development of 27 detached residential units, with a total area of 4,400 sqm, on a land plot of almost 11,000 sqm (Building Block 271) in the municipality of N.Erythrea, is expected to be completed in 2008.
Aris Vovos, CEO of BVIC, informed the shareholders for the company's financial results and specifically stated the following:
It is my pleasure to be able to share with you a strong set of results for 2007, as we advanced our development programme and secured additional debt for the Group to be able to meet its development financing requirements, while continuing to generate significant growth in our recurring lease revenue. In 2007, our NAV per share before deferred tax decreased by 2% year-on-year to euro 19.97. This was due to the fact that no investment properties under construction were completed during 2007 and there were limited revaluation gains during the year. In 2008, the Group expects an NAV contribution of almost ?1.6 per share from the completion of the commercial center at 340 Syggrou Avenue. Furthermore, the NAV contribution from the completion of Poros will enable us to achieve double digit NAV growth. We believe that our strategy of focusing on the prime office market, while taking advantage of opportunities in the retail and tourist development sectors, will generate strong growth in our net asset value in the coming years.
BVIC Group's revenue increased by 81% year-on-year in 2007 to ? 101 million. This was mainly attributable to an increase in development and sales revenue in 2007 vs 2006 by 259% to euro 56 million. The sale of two buildings under construction at the HELEX complex generated euro 53.5 million in 2007, according to the percentage of construction completed. The remaining revenue stemmed from the sale of residential properties at the complexes located at Patmou and Agrafon Str (euro 1.6 million) and at Mortero N. Erythrea (euro 0.7 million).
The Group's rental revenue increased by 13% in 2007 to euro 44.1 million, mostly as a result of new lease agreements that came into effect during the year from the Delta Falirou Complexes that were delivered in 2006. Additionally, rent adjustments of approximately 4%, on the existing lease agreements that include an annual upward revision based on Greek CPI plus 100 basis points provided generated like for like rental growth for the Group. In a strong inflationary environment such as that of Greece is experiencing today, this should give rise to rent adjustments of over 5% in 2008.
The completion and leasing of 340 Syggrou Avenue during 2008 is anticipated to add approximately euro 4.5 million in rental revenue in 2009, which is an increase of 10% in the Group's rental revenue. The contribution of the Votanikos shopping mall in 2009 is expected to contribute euro 35 million in rental revenue, therefore we anticipate that the Group's rental revenue will have almost doubled in 2010.
BVIC Group EBITDA stood at euro 24 million in 2007, compared to euro 146 million in 2006. This was mainly driven by a net gain from fair value adjustment on investment properties of euro 5 million in 2007, compared to a euro 139 million net gain in 2006. During 2007, the revaluation of the Votanikos land plot, based on the increase in values in the area stemming from the infrastructural works being carried out, as well as the permits obtained by the Group, led to a revaluation gain of approximately euro 35 million. The revaluation of the land plot at Syggrou Avenue, based on recent transactions demonstrating a rise in prices in the area, led to a euro 3 million revaluation gain. The above revaluation gain were almost entirely offset mainly by a decrease in the value of BVIC's sale and leaseback and Built Operate Transfer portfolio, that had a revaluation loss of euro 32m, stemming from an increase in the discount rate to 6% for the sale and leaseback and 6.8% for the BOT, due to the rising interest rate environment.
The Group's net finance expenses increased by 34% in 2007 vs 2006 to euro 35 million, due to an increase in interest rates and additional debt. These led to a loss after tax for the year of euro 8 million, compared to a profit after tax of euro 85 million during 2006.
BVIC's investment property portfolio stood at euro 1,232 million, as at 31 December 2007, a 3 % increase from the 2006 value of euro 1,195 million. The increase in investment properties stemmed partially from additional construction costs accumulated for projects under development, the most significant of which were those incurred for the commercial development at 340 Syggrou Ave, the shopping mall at Votanikos and the tourist development at Poros. In total, there was an increase of euro 27 million in investment properties in 2007, that was accumulated construction cost driven. The revaluation gains driven increase of investment property amounted to euro 5 million.
The Group has been successful in securing new borrowing during the year in order to meet its development costs. These include new loan facilities to cover the development costs at Votanikos of euro 59 million, a euro 20 million loan for the development of Sounio, and euro 9 million for the Poros development. BVIC has secured a line of credit for a further euro 61 million for Votanikos, that has not yet been drawn down. The new sale and leaseback agreement of euro 80 million signed for the development at 340 Syggrou Ave has not been reflected in the Group's balance sheet as at 31 December 2007 since it was signed during January 2008.
During 2007, the company proceeded with the refinancing of four of its sale and leaseback agreements, based on the rental growth that has occurred over the last few years from the lease agreement adjustment of Greek CPI plus 100 bps. This resulted in an increase of the value of the assets at 6 Pouliou Str., 95-97 Kifissias Avenue (subject to two sale and leaseback agreements), and 221 Kifissias Avenue, amounting to a total additional notional amount of euro 48 million for these assets.
Moreover, the Group lowered its future interest expenses on the existing sale and leaseback agreements for these assets. The interest rate for the sale and leaseback for 6 Pouliou Str decreased from Euribor 1 month plus 2.20% spread to Euribor 1 month plus a spread of 1.80%. The interest rate for 95-97 Kifissias Avenue decreased from Euribor 3 month plus 2.50% spread to a spread of 2.00% over Euribor 1 month as far as the SLB agreement with Alpha Leasing is concerned, while the interest rate for 95-97 Kifissias Avenue decreased from Euribor 3 month plus 2.50% spread to a spread of 1.80% over Euribor 1 month as far as the SLB agreement with Piraeus Leasing is concerned. Additionally, the interest rate for 221 Kifissias Avenue from Euribor 1 month and 285 bps decreased to Euribor 1 month plus 180 bps.
We are committed to creating value for our shareholders, during 2007 we concentrated our efforts on investing for future growth, and we believe that we are well positioned to achieve excellent returns in the coming years.
After covering all the issues of the agenda and since no other issues were raised, the meeting was finalized.