Privatization of “Kassiopi” tourism project in Greece concludes after four years

The privatization of the “Kassiopi” plot on the island of Kerkyra (Corfu) is set to conclude after four years. The total area of the plot is 490,000 square meters, with the investor having the right to develop tourist infrastructure of 36,000 square meters for 99 years.

According to a report in Ta Nea upon signing the deal between the privatization fund TAIPED and NCH Capital, the American firm will make a payment of 10 million euros. The full amount agreed was 23 million euros. NCH Capital's plan includes investments worth 77 million euros.

The Hellenic Republic Asset Development Fund announced the 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.

The Board of Directors of the Hellenic Republic Asset Development Fund (HRADF) had approved the binding financial offer by a joint venture by NCH New Europe Property Fund II LP and NCH Balkan Fund LP. NCH Capital will pay 23 million euros the right of use, while an additional 2.3 million euros will be a possible participation of HRADF for a future increased value of the property after six years through an earn-out clause. The investment is expected to reach 75 million euros.

Evangelia Tsitsogiannopoulou, HRADF Director, said that the exploitation of the “Hermit” region in Corfu will have significant benefits to the local society and noted that the project was expected to create touristic, economic and social developmet in the Ionian islands in general, strengthening the region’s tourism product and tourist arrivals.

Development of the island

NCH Capital Inc on Thursday announced the completion of all procedures and the signing of a contract to transfer 100 pct of shares in a Special Purpose Vehicle company through Hellenic Republic Asset Development Fund’s privatization programme.

The company said that implementation of the project will fundamentally contribute in the development of the island through creating new job positions, attracting additional investment interest and upgrading Corfu’s tourist product.

The investment envisages the creation of a high-quality hotel complex, under the umbrella of a world famous international hotel chain, with a construction budget of more than 100 million euros. The project will focus on sustainable and green development, emphasizing on protecting, promoting and upgrading the region’s natural resources. NCH Capital Inc said it will prefer a Greek architect for the project.

Andreas Santis, CEO for Greece and the Balkans said: “We are very satisfied that such an important project for Corfu and Greece begins. Our vision is to create a unique way of life, in a destination, where every citizen of Corfu, every Greek will feel proud.”

NCH Capital is based in New York, USA, and has over 3.5 billion US dollars of capital under management, with funds across four asset classes: listed equity, real estate, agribusiness and private equity. It operates 21 investment funds.

Photo Source: tovima.gr

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