The European Bank for Reconstruction and Development (EBRD) on Monday announced its first capital investment in Greece outside the country's credit sector, and its first foray in the real estate and tourism sector with its participation in a consortium with a well-known Greek developer.
By T. Igoumenidi
The European Bank for Reconstruction and Development (EBRD) on Monday announced its first capital investment in Greece outside the country's credit sector, and its first foray in the real estate and tourism sector with its participation in a consortium with a well-known Greek developer.
The EBRD said it will pump 61 million euros into a consortium with Dimand, one of the top property development firms in the east Mediterranean country, with the prospect of co-financing projects worth up to 250 million euros. Additionally, the prospect of another major developer, Grivalia, joining the consortium was left open.
The European development bank's stake in the new consortium will be 35 percent, with Dimand, through its subsidiary, Arcela Investments Ltd., holding the remaining 65 percent.
In the initial phase, the new consortium aims to renovate a large but abandoned industrial site located in Piraeus, some 250 meters from the port.
The projected budget for the consortium's inaugural project reaches 80 million euros, with the master plan including a new hotel, apartments, office space, shops and even student dormitories.