January 5, 2016

Turkey, UAE, Kuwait sign $434 million deal on Greek luxury resort

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Tuesday 05 Jan 2016 - 19:06 Makkah mean time-25-3-1437

Athens, (IINA) - Investors from Turkey, UAE and Kuwait, represented by Jermyn Street Real Estate Fund, have signed a $434.3 million deal with Greek rivatization agency to buy the Astir Palace, a luxury seaside resort outside Athens, Reuters reported.
Greece's top administrative court had blocked the sale of the Astir Palace hotel complex in March, saying that the planning scheme that was submitted violated Greek law as the construction of a vast number of residential buildings would harm the natural and urban environment.
"Jermyn Street Real Estate Fund has signed the new agreement to submit the amended special zoning and spatial plan for the development of Astir Palace", the Hellenic Republic Asset Development Fund (HRADF) said.
The agency said the agreement ensured that the fund's development plan for the resort was adjusted to the court's opinion. "The whole process is expected to be completed within the first half of 2016", HRADF said.
The agency is expected to cash in about $107 million from the deal. The rest of the proceeds will go to National Bank, Greece's largest lender, which owns about 85 percent of the resort.
Privatizations have been a key condition of Greece's international bailouts since 2010, but its state asset sales scheme has produced poor revenues due to bureaucratic delays and lack of political will.
So far, Athens has raised only about 3.5 billion euros from state asset sales versus an original target of 50 billion euros.
AG/IINA

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