A landmark agreement transferring a massive tract of state-owned land in southeast coastal Athens to a consortium planning one of the biggest real estate redevelopment projects in Europe is expected to be tabled in parliament by Friday.
The announcement comes a day after a bevy of press reports in Athens claimed that yet another bureaucratic “hurdle” arose in relation to the proposed Helleniko project.
A culture ministry press release in the late evening attempted to allay concerns, although the substance of the reports – namely, that the ministry attempted to mandate that the relevant culture minister must also legally sign off on presidential decrees involving the project – raised eyebrows.
An international consortium, which is led by Athens-based Latsis Group, has committed to plowing at least 4.6 billion euros into the investment, on top of 1.5 billion euros in related infrastructure for the 620-hectare site.
Some 915 million euros, or 32.76 of the total sum, will be paid to the Greek state at the time of the transfer of shares in the state-managed holding company, which owns the properties. Another payment will come after two years for another 51 percent of the shares.
The contract also envisions that the current privatization fund, TAIPED of HRADF, will also share a portion of whatever future profits from the investment.
Lamda Development 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 the investments 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 etc. The figure comes from a study unveiled by the Athens-based IOBE economic research institute.
Moreover, in a move that will please proponents of private initiative and a smaller state, the concessionaire assumes the maintenance, upkeep and security for the entire site, including the Central Park-sized green spaces.
