In response to the acute public interest in our publication of the Astir Palace Resort sale inside story today, revealed to tornosnews by an experienced industry player with first-hand knowledge of the negotiations, we decided to run the same source’s in-depth info, concerning latest developments in the Athens Hilton sale and the Hellinikon privatisation project’s negotiations.
According to our source, Alpha Bank’s top Real Estate executives confirm that the selling procedure has initiated and soundings are carried out by international tourism market players.
Cypriot-South African-Indian scheme
It is no secret that certain Cypriot entrepreneurs have expressed interest, in cooperation with a large South African and Indian Fund, which may also play a key role in the Cyprus Casino mammoth tourist investment.
Following Alpha Bank’s successful recapitalization, stifling capital pressures have subsided, so the bank is not in a hurry to sell, unless there is a satisfactory price, given the market’s circumstances.
Yet, Athens growing incoming tourism rates combined with the hotel’s advantageous, rather exclusive, location away from Sindagma square, already attract large funds and satisfactory demand is to be expected. The Bank wants to relinquish the property, so developments may follow swiftly.
The Hellinikon project
The hellinikon project offers great development advantages due to its large size and extensive waterfront. When realized, it will be the largest tourist investment in Greece ever. However, such a large investment has to ensure sustainability. The implementation of the works mentioned in the presented program will require huge funding. The project’s self-financing shall require residential construction in all forms, from apartments to luxury villas, as well as selling them to interested buyers.
Investors strive for and will propably succeed in acquiring a casino permit. Building requirements are relatively small and construction period short. Therefore, the Casino can operate from the beginning and provide immediate revenues, exactly as in the Loutraki Casino example.
Nevertheless, the Greek State has not made up its mind in both cases and a longer time is likely to be needed, unless the government decides to make the decisive step and start the works, which will be a catalyst for attracting new investment capital from abroad. Again, a large tourism investment like Hellinikon, without a Real Estate development program or a casino operation is doomed.
RELATED TOPICS: Greece, Greek tourism news, Tourism in Greece, Greek islands, Hotels in Greece, Travel to Greece, Greek destinations , Greek travel market, Greek tourism statistics, Greek tourism report
