Arab-backed fund signs $434M deal to buy Greek resort
ATHENSJan 05, 2016 - 12:00 am GMT+3
Jan 05, 2016 12:00 am
Greece's privatisation agency said on Sunday it signed a 400 million euro ($434.3 million) deal with Jermyn Street Real Estate Fund to sell Astir Palace, a luxury seaside resort outside Athens. Greece's top administrative court had blocked the sale of the Astir Palace hotel complex in March, saying the town planning scheme that Greece submitted violated Greek law as the construction of a large number of residential buildings would harm the natural and urban environment. "Jermyn Street Real Estate Fund has signed the new agreement to submit the amended special zoning and spatial plan for the development of Astir Palace," the Hellenic Republic Asset Development Fund (HRADF) said. The fund represents investors from Turkey, Abu Dhabi, Dubai, Kuwait and other Emirates. The agency said the agreement ensured that the fund's development plan for the resort was adjusted to the court's opinion. So far, Athens has raised only about 3.5 billion euros from state asset sales versus an original target of 50 billion euros.
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Research Associate at Center for Islam and Global Affairs (CIGA) at Istanbul Sabahattin Zaim University