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Greek privatization fund signs deal for sale of seaside luxury resort

Xinhua, January 4, 2016 Adjust font size:

Greece's privatization fund announced on Sunday the signing of a final agreement with the Arab-Turk investment fund Jermyn Street Real Estate for the sale of Astir Palace, a luxury seaside resort in the Athens suburb of Vouliagmeni, as part of the debt-laden country's privatization program.

The price of the deal which was finalized in late 2015 and was signed by the two sides on Dec. 31, was set at 400 million euros (434 million U.S. dollars), according to an announcement from the Hellenic Republic Asset Development Fund (HRADF).

The process had started in January 2013 before the fund emerged as a preferred bidder in 2014. But the privatization freezed for several months after the Council of State, or Greece's top administrative court, blocked the procedure.

The court rejected the investors' initial development plan for the construction of about 100 luxurious homes across the 300,500 square meters zone on Vouliagmeni's peninsula, as violating laws regarding environmental protection.

The investment fund amended the construction plan that now foresees the construction of fewer new luxurious villas next to the complex of existing hotels. The plot that was sold also includes a marina and green spaces.

The entire process was expected to be completed within the first half of 2016, according to HRADF's press release.

Shortly before the Christmas and New Year's holidays, the privatization fund also signed a final deal for the concession of 14 regional airports to a German investment fund, while significant developments in the privatization process of Piraeus port and the gas network operator DESFA are expected in early 2016, according to HRADF officials.

Greece's 50 billion euro worth privatization program was launched in 2010 when the country signed its first bailout deal with international creditors to overcome a severe debt crisis, but Athens has missed several timetables and revenues targets. For 2016 the goal is to raise about 2 billion euros from privatizations. (1 euro=1.09 U.S. dollar) Endit