PAROSTEC CO-OWNERS INTERVIEWED ON FORTUNE MAGAZINE
A “dream builder” in construction
Setting off from Paros, PAROSTEC Co-owners George Kangelis and George Oikonomopoulos when interviewed for Fortune, talked about their vision to expand to larger scale projects in Athens as well as other Cycladic Islands. PAROSTEC case stands out for the way it was set up but also for its growth profile and course over the last years. It is a Greek “boutique” construction company which is a key player in Cyclades, having built over 150 luxury villas and hotels of the highest standards, mainly in Paros and Antiparos Islands. Its comparative advantage is that it undertakes projects of any scale that demand a deep and thorough understanding of design, aesthetics and craftmanship.
The foundation of PAROSTEC was set by the current co-owners’ parents in 1990, when they first started the business. As children, they were both spending many hours in construction sites with their parents, therefore their future profession within the construction sector was inevitable. During their management, the company has gained the acceptance and trust of a high-profile clientele that comprises of ship-owners, entrepreneurs, businessmen, multinational conglomerates’ executives and even Hollywood stars, from France, the UK, Switzerland, Belgium, Germany, Israel and Greece, while at the same time it has grown in numbers, occupying an experienced team of 40 employees that keeps growing rapidly, with offices in Paros, Antiparos and Athens.
In order to live up to the high demands of its clients, the company has entered into strategic partnerships with the most prestigious Architect Agencies in Greece and abroad: DECA architecture, Nikos Valsamakis, 4K Architects/Decavalas, Agiostratitis, Rizos Architects, BLOCK722 Αrchitects+, Tessera Architects, Ese Studio, ISV Architects, Studio Seilern Architects, Tala Mikdashi and others. The owners call themselves “dream builders” and they are very satisfied to have been established as leaders on the market of high standards construction in Paros and Antiparos, thanks to the thorough knowledge of the wider area they operate, the know-how and the trusting relationship they build with their clients.
During the ten years that you have been PAROSTEC leaders, which are the most important milestones that resulted in the company’s present status?
George Oikonomopoulos: I would say that the milestone year for PAROSTEC was 2018 when we decided to evolve as a company beyond the limits of a local office. From that point onwards, our development was spectacular. Even amid the pandemic our growth was not affected. So, in 2021 we have acquired 2 new offices in Antiparos and Athens, and we also entered the Athens market with the emblematic building of DOL in Christou Lada Str. – a large scale project.
Your dynamic entrance in Athens market came with the partnership with the German real estate development company ehret+klein. How did this happen?
George Kangelis: Our expansion in Athens market in 2022 was one of our strategic goals. We undertook the restoration construction works of the emblematic building of DOL following the vote of confidence from the German real estate development company ehret+klein in 2021. The property offers an approximate of 3,500 square meters for lease and is situated on 1-3 Christou Lada Street, in the center of Athens’ Commercial Triangle, which is surrounded by Syntagma Square, Omonoia Square and Monastiraki. This specific project marks a pivotal point within Parostec and we are very proud that ehret+klein has included our company in their network of local Greek partners. Our aim is to carry out the restoration of this historic building the best possible way, in line with our company’s successful course
How was PAROSTEC affected by the pandemic and the Ukraine war?
George Oikonomopoulos: The truth is that the pandemic had no negative impact on us, which makes sense if one studies the facts of real estate as an investment, not only in Greece but also worldwide. It is clear that the conditions formed by COVID-19 enforced a greater sense of privacy in order to protect from the virus, encouraging big cities’ residents to move to smaller towns, islands and suburbs, into more affordable properties with larger indoors and outdoors space. This is an international trend that was not as obvious in our country because of the Tourism industry. Besides, the Cycladic Islands where we dynamically operate, and especially Paros and Antiparos, are rapidly developing and combine various aspects of this activity. For example, Paros offers large beaches and an easy connection to Athens because of the airport, while it is very popular with French. On the other hand, Antiparos is a VIP destination, a small island with large properties, therefore more expensive, on higher demand and lower offer.
With regards to the Ukraine War and the energy crisis, as expected, the sanctions imposed have affected our industry as all costs have risen due to the oil price. In these times, the role of the government is important. Measures need to be taken, such as tax reliefs, subsidies etc. for the market to get back to balance.
“Green” buildings are of great interest to investors. Do you see this new trend lasting?
George Kangelis: Green houses are very important both in Paros and the rest of the Greek islands in order to save resources and energy, due to the high touristic development. Today these properties do not exceed 5% but we predict an increase of 25%-30% within the next five years. The fact that there is good will and intention from contractors, local authorities and owners towards this direction is very encouraging. The transition to sustainability and the financial incentives for consuming clean forms of energy also act as a bonus. It is important to continue to develop according to the regulations and respect the protection zones of Paros, by adopting new “green” models such as renovating older buildings to more modern sustainable ones to protect our island.
From your experience in Paros real estate market, would you say that the investors’ profile has changed?
George Oikonomopoulos: There has been great interest in Paros lately from Israeli investors, who are mainly looking into long-term touristic investments. There is also interest expressed from established conglomerates for the construction of hotels – these investments do not exceed 15m euros.
In your industry, expertise and technical knowledge are of utmost importance. How did you manage to staff your company, and which are the criteria you use to choose your associates?
George Kangelis: Investing in highly qualified human resources is a determining factor of PAROSTEC development. We try to combine experience, innovation, and passion. Within our company there is a mix of older and new generations (30% senior members and 70% younger, motivated, passionate members with fresh ideas). Besides, this is how our own course has started. Surely, the criteria by which we select our employees are the technical knowledge of the construction industry, digital and soft skills such as critical thought, innovation, complex problem solving, a sense of cooperation and teamwork, empathy etc. Meanwhile, we have actively supported “brain gain”, having hired over the last months 6 highly qualified Greek employees from abroad.
How many projects are in development at the moment?
George Oikonomopoulos: 2022 is a very fulfilling year for PAROSTEC. We have started in full speed with 15 construction sites in Paros, another 15 in Antiparos and one in Athens, while later this year we expect to begin another 10 projects. We will soon be announcing new large scale projects in Athens.
How easy it was to maintain a balance between the successors of two different families that are in partnership, and which advice you were given by your parents when they handed you over the business?
George Kangelis: There is trust and support between us in every decision. Throughout all the years of our partnership there is a spirit of collaboration freed from tensions and conflicts. Besides, we know each other since childhood, and we have developed a friendship early on. We spent much time in construction sites with our parents when we were still in school, and we know each other very well.
George Oikonomopoulos: The advice our parents gave us when they handed over the company was that we need to always be present in every aspect, pay attention to everything, build trusting relationships with our employees, our associates, and our clients, so that PAROSTEC wouldn’t become a faceless impersonal entity as it grows. In other words, to adopt a people-centric leadership, building personal and meaningful bonds with the individuals we are in business with, removing ourselves from the equation and focusing on the long-term benefits of our employees and our company. Indeed, this is how we run everything from day one until now.
Which was the main business challenge you had to face until today?
George Kangelis: The biggest challenge we had to face was in 2018, when we decided to evolve as a company instead of remaining a local office. We knew the transition over to the next scale and the expansion beyond the limits of Paros and Cyclades would not be easy. However, we took the risk and our decision has proven us right, as we have already overcome the goals we had set 4 years ago. Of course, during this transition it was important to have on board with us people with technical knowledge that we had worked with over our previous stage, while at the same time attract new highly skilled talents to staff PAROSTEC on its new course.
How do you see yourselves and the company five years from now?
George Kangelis: Over the last couple of years, we have seen an increase in global risks, first with the health crisis and the pandemic, now with the energy crisis. Therefore, our main goal is to stay healthy and carry on with the same eagerness, maintain that same passion that we started with, and which has helped us establish and gradually expand to larger markets.
George Oikonomopoulos: For the next five-year term, our goal is to expand into larger scale projects such as the one in Athens, as well as other Cycladic Islands besides Paros and Antiparos. Another big stake for the next years is the construction of more “green” sustainable buildings to save resources and energy.
