In 1912, following the incorporation of Thessaloniki into the Greek state, the villa served as the residence of Prince Nicholas, the first Military Governor of the city. In 1917, the Villa Kapantzis enjoyed its most glorious days as home of Prime Minister Eleftherios Venizelos, then head of a Provisional (revolutionary) Government, based in Thessaloniki, during a critical period in the history of Greece.
Between 1918 and 1922 the villa was the residence of the Kapantzis and Cohen families. Following the Greek defeat in Asia Minor (1922) and until 1928, refugee families were accommodated in its rooms.
In 1928 the building was acquired by the National Bank of Greece, as an exchangeable asset, and was used as the headquarters of the American Foundation Company, which carried out major land reclamation works in Central Macedonia.
Between 1938 and 1972, excepting the period of the Second World War, the villa housed the Fifth Boys High School. Thus, thousands of Thessalonikans have lived in the Villa Kapantzis, as pupils of one of the city's most prestigious secondary schools.
In 1940 the building was requisitioned by the Greek Army and was used as a military bakery. During the German Occupation (1941-1944), it was requisitioned by the German authorities. Following the liberation, it served as British Army headquarters until the summer of 1945, when it was returned to the Fifth Boys' High School, which remained there until 1972.
In that year the building was abandoned in dilapidated state and in need of serious repairs, following its long-term usage in different capacities. In response to public demand, the National Bank of Greece decided to restore the building and to use it for cultural purposes. The painstaking restoration process lasted from 1982 to 1988. The relevant study aimed at minimizing interventions that might alter the original character of the villa, whilst at the same time preserving its authentic features.
The building that houses the Cultural Centre of MIET in Thessaloniki is one of the few extant, late nineteenth-century mansions and one of the most important modern monuments in the city. It not only preserves a vivid picture of what was once the Exochon Quarter but is also a vital part of the city's recent history.