Greek state sells real estate property on Corfu island

Greece's privatization fund announced on Thursday the sale of a real estate property on Corfu island.

However, the conclusion of the sale after four years did not help the debt-laden country reach the overall revenue target set for privatization during 2016 under its bailout program, according to the latest official data.

The Hellenic Republic Asset Development Fund (HRADF) on Thursday announced the conclusion of the privatization of the Kassiopi area with the signing of the transfer of the equity capital of "New Corfu Property Investments SA", a special purpose vehicle set up by HRADF for the exploitation of the property and the payment of a first tranche worth 10 million euros (10.4 million U.S. dollars).

HRADF's Board of Directors approved the binding offer by a joint venture by New York-based NCH New Europe Property Fund II LP and NCH Balkan Fund LP, according to an e-mailed press release.

The investors will pay 23 million euros (24.05 million U.S. dollars) for the right of use for 99 years and invest further 75 million euros for the area's development, under the contract.

The total area of the property at Kassiopi is 490,000 square meters, in which the investor will have the right to develop a gross buildable area of about 36,000 square meters.

Evangelia Tsitsogiannopoulou, HRADF's executive director, expressed confidence the deal will have significant benefits to the local economy by creating jobs and upgrading the tourism product of the wider region.

Despite the conclusion of a list of privatizations in 2016, Athens failed to reach the projected goal of 2.5 billion euros this year.

State coffers saw revenues from sell-offs coming to only about 500 million euros, according to the 2017 budget approved by the parliament earlier in December. (1 euro= 1.04 U.S. dollars) Endit