Fairfax Financial Holdings stated on Wednesday that it will increase its stake in Eurobank Properties, a Greek real estate firm. The raise in stake was to 42% from the previous 19%.

Both Fairfax and Eurobank are directed to boost their relationship and shareholders of Eurobank Properties. This will make the firm a leading player in the country's real estate industry.

The agreement states that Eurobank Properties will go on with a rights offering roughly Eur200 million. This would translate to Eur4.80 per share piece. Meanwhile, Fairfax will be exercising its own rights to acquire Eurobank's rights for Eur20 million.

Provided all other shareholders exercise their rights and after a raise in capital, Eurobank will hold 33.5% in the real estate firm.

Currently, Eurobank Properties has a market capitalization of Eur406 million. Fairfax will pump up around Eur164 million through the offering of rights. The deal also included having Eurobank retain its management control of Eurobank Properties until June 2020.