Fortress Investment Group, the U.S. investment manager, is strengthening the balance sheet of its Greek real-estate management platform, Castlegate, through a debt-to-equity conversion, as it continues to maintain a presence in the country’s property market.
The transaction is being carried out through Luxembourg-based Luxira SARL, a Castlegate shareholder linked to Eurocastle Investment Ltd., a Guernsey-based investment company managed and supported by Fortress.
According to an independent valuation report filed with Greece’s General Commercial Registry, Castlegate plans to convert €266,702 ($309,000) of outstanding shareholder debt into equity, with the obligation valued at €250,000.
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The transaction will reduce Castlegate’s liabilities and strengthen its capital position without requiring an additional cash injection.
The restructuring relates to a bond loan of up to €15 million agreed between Castlegate and Luxira in November 2023. By March 31, 2026, approximately €6.17 million had been drawn under the facility.
Originally scheduled to mature in November 2025, the loan has been extended by two years, with repayment now due on Nov. 17, 2027. The extension provides Castlegate with additional financial flexibility while the debt conversion modestly reduces its outstanding obligations.
Independent auditors valued the €6.17 million drawn loan at approximately €5.79 million on a present-value basis, reflecting the discounted value of future repayments.
Luxira has formally consented to the conversion, confirming the outstanding obligation and agreeing to exchange part of its claim for equity.
Castlegate’s activities in Greece are supported by Grifon Capital, the investment firm associated with Samy David, which assists the platform’s operations in the local real-estate market.
