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Fairfax Financial Holdings Ltd., which has seen its 2011 investment in Ireland’s biggest bank jump about 50%, is now focusing on Greece, betting that the worst has passed for the recession-battered nation.

“In terms of the economy, the last four or five years have been very tough for Greece,” Fairfax Chairman and Chief Executive Officer Prem Watsa said in a June 19 telephone interview. “The economy has come down very significantly, unemployment is high. But on the other hand, we think that perhaps a bottom has been reached.”

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Fairfax said on Wednesday that it will invest about 164 million euros ($217 million) in Eurobank Properties Real Estate Investment Co. as part of a share capital increase, bringing the Toronto-based firm’s stake in the Greek property company to 42% from 19%.

Watsa said Eurobank Properties is raising money at the right time to take advantage of a “lot of opportunities in Greece.” The country’s state-asset sales program, which includes a large real estate portfolio, has the potential to generate “significant growth” from private investors.