A document by the relevant archaeological service at the culture ministry referring to a “delineation” of archaeological sites over the entire tract of land that forms the Helleniko real estate investment generated the latest political “squall” over the weekend.
A document by the relevant archaeological service at the culture ministry referring to a “delineation” of archaeological sites over the entire tract of land that forms the Helleniko real estate investment generated the latest political “squall” over the weekend.
The Helleniko site includes the old Athens airport, including a disused runway, two former military airbases and even a handful of facilities erected for the 2004 Summer Olympic Games. Certain abandoned buildings and hangars have recently acquired a temporary new purpose, hosting hundreds of Mideast war refugees and assorted other third world irregular migrants that landed on Greek territories after being ferried over from neighboring Turkey.
An international tender to develop the site attracted a single binding offer, by a consortium led by the Athens-based Lamda Development group, which was eventually accepted by the current government.
The development led to sharp criticism by the opposition, with most political parties pointing to a latest effort to sabotage the biggest real estate development project in the country and even in the Mediterranean basis. They charged that the leftist government is trying to find any reason for blocking the memorandum-mandated privatization.
The document was revealed in press reports over the weekend, and was issued by the general directorate of archaeology and cultural heritage of the culture ministry.
In a later reaction, Minister of State Alekos Flambouraris, considered among the closest associates of Greek PM Alexis Tsipras, charged that main opposition New Democracy party was attempting to misrepresent the truth of the matter.
A master plan for the landmark Helleniko real estate project, overseen by Lamda Development's main investment vehicle, Global Investment Group, foresees a 915-million-euro payment to the Greek state, paid in installments over the next 10 years.
The first payment, in fact, is a lump sum of 300 million euros for the purchase of 100 percent of the Helleniko S.A.’s shares – the state entity that manages the disused facilities of the old Athens airport -- and a concession for 99 years.
Lamda will manage the project for the investment group, which is comprised of Chinese multinational Fosun, Abu Dhabi-based Eagle Hills and the Latsis group, which controls a majority of Lamda.
The master planner for the project is Foster+Partners.
Based on the investment plan, the concessionaire is obliged to make investments of 4.6 billion euros over a 15-year period.
Projected revenue for the Greek state, based on a 25-year investment cycle that takes into account the initial construction and subsequent operation, is expected to total an impressive 13.5 billion euros, i.e. taxes on profits, employees’ income taxes, social security contributions, property taxes, VAT remittances. The figure comes from a study unveiled by the Athens-based IOBE economic research institute.