Greece kicks off EUR 25b property sale programme

The Greek government is pressing ahead with plans to privatise billions of euros of public real estate assets in an attempt to strengthen its beleaguered finances.

The debt-ridden state is set to sell off the lion’s share of its 100,000-property strong portfolio through the recently created Hellenic Republic Asset Development Fund, a body set up over the summer to manage Greece's privatisation push.

‘We are targeting about EUR 50 bn from asset sales, half of which will involve real estate assets,' Andreas Taprantzis, executive director of the fund, told PropertyEU in an interview.

The programme's first milestone will be the collection by end March 2012 of expressions of interest for the first major asset put up for sale - Athens’ former international airport. The fund has invited developers and investors to bid to buy a majority stake in Hellinikon, the company that owns the rights to redevelop the 6.2 million m² site located near the city centre. The area, which is more than three times the size of Monaco, will constitute one of the largest urban regeneration and land development projects in Europe, involving an estimated total investment of some EUR 5 bn over the next 10 years.

‘We are seeking to attract the interest of high-caliber investors with a long term vision for the transformation of this prime piece of real estate into a landmark mixed-use development project, ’ Taprantzis said. The Greek state is looking to retain a minority stake of around 30% in the project but will not participate in the investment, he added. Interested parties are required to submit their qualifications by end-March 2012, in order to be able to participate in the next phase of the tender process scheduled for conclusion by the end of 2012.

Other best-in-class state-owned assets will be put up for grabs in the next few months. The Hellenic Republic Asset Development Fund has selected a prime residential development site in Corfu as well as a leisure-led project on Corfu island. In Athens, one of the city’s most visited shopping centres located near the Olympic stadium is planned to come to the market by the third quarter of this year.

But the highlight of this year's planned auctions will be the massive Prasonisi development site. The coastal area - a paradise for windsurfers - covers a total of some 800 hectares of land located at the southern part of Rhodes island and is envisaged to house tourist resorts, hotels, services and residential units.