Sitia is back in the spotlight with a game-changing agreement for one of the largest licensed tourism projects in Crete. Iktinos Hellas and CBE Capital have signed a binding preliminary agreement, paving the way for the redevelopment and final maturation of the large project in the Sitia Bay area – an area of ??almost 2,700 acres in one of the most pristine coastal areas of Northeastern Crete.
This is an agreement that, without implying an immediate sale, integrates an international investment group into a project that has been considered a “sleeping giant” of the Greek tourism market for years. For Iktinos, which operates primarily in the marble sector, the project has always been a large but non-core asset – with the company considering either maintaining a minority stake or future divestment, depending on the final investment scheme.
What the Iktinos – CBE agreement provides
The Asset Management Agreement (AMA), signed between Iktinos and CBE Capital, assigns the London-based group to completely reshape the development plan of the area. The maturity period is set at 18 months, with a possibility of a six-month extension.
The key points of the agreement provide that CBE does not acquire the area, but undertakes the structure, design and preparation of the project, with the aim of attracting investors. The revision of the masterplan towards the creation of a luxury resort of international prestige will aim to position the project at the top of the Eastern Mediterranean market.
CBE will then seek institutional or private investors, acting as a general partner (GP) in a future investment scheme.
Iktinos retains a put option to transfer the project to CBE with a minimum guaranteed return equal to its book value.
The final agreement is expected by December 31, 2025, giving the investment community clear timelines and greater transparency regarding the next steps.
The project that “unlocks”: Sitia Bay Resort
The property of approximately 2,690 acres already has a long history of planning and licensing. The Sitia Bay Resort masterplan, as presented in previous years, includes a 5-star hotel with over 200 rooms, a 2,500 sq m spa, a 200-person conference center, two residential development zones with a total area of ??over 500,000 sq m, 102 residences, of which 54 are autonomous villas of 200–400 sq m, furnished apartments and a 4–5-key guesthouse, a shopping and entertainment center, an 85-place marina, with water sports activities, an 18-hole golf course, originally designed by Jack Nicklaus, biological treatment, water management systems, architecture adapted to the Cretan landscape.
The total investment, in full development, is estimated to exceed 300 million euros, with implementation phases that have already received the basic approvals.
CBE Capital’s strategy and footprint in Greece
CBE Capital is no stranger to Greek real estate. Its first major project in the country is Six Senses Porto Heli, which is being implemented together with Golden Land Goutos, Taconic Capital and Cedar Capital Partners, with a bank financing of 95 million euros from Piraeus Bank.
CBE operates with a merchant banking model, i.e. it designs, shapes, restructures, seeks investors and remains until the final exit.
It has developed significant know-how from similar complex projects in Germany, Italy (Capri, Rome), while it is considering additional projects in Marrakech, Florida, Italian islands and new Greek destinations.
With the Sitia project, Greece now joins the group’s main strategic hubs in the Mediterranean.
What does the partnership mean for Iktinos
For Iktinos Hellas, which records a turnover of over 30 million euros in the marble sector and a significant percentage of exports, the partnership with CBE marks the organized exploitation of an asset outside the core activities, avoiding an immediate sale, ensuring a minimum value and maintaining the possibility of maintaining participation in future goodwill. The project, which is “on the books” with a book value of around 30 million euros (2021), is expected to have a higher valuation after the implementation of new accounting standards.
