Saturday Jan 31, 2015 Search
Weather | Athens
16o C
13o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Greece prepares to lease 40 uninhabited islands

Skorpios is owned by the Onassis shipping heiress Athina Onassis.

By Sharon Smyth

Greece’s Hellenic Republic Asset Development Fund has identified 40 uninhabited islands and islets that could be leased for as long as 50 years to reduce debt as pressure grows on the country to revive an asset-sales plan key to receiving international aid.

“We identified locations that have good terrain, are close to the mainland and have a well-developed infrastructure and, at the same time, pose no threat to national security,” Andreas Taprantzis, the fund’s executive director for real estate, said in a Sept 6. interview in Athens. “Current legislation doesn’t allow us to sell them outright and we don’t want to.”

The fund is charged with raising 50 billion euros from state assets by 2020 to meet conditions tied to pledges of 240 billion euros in foreign aid. As international inspectors in Athens scrutinize the country’s fitness to receive the latest aid payment, Prime Minister Antonis Samaras has said commercial exploitation of some islands could generate the revenue lenders need to see to continue funding the country.

The shortlist includes islands ranging in size from 500,000 square meters (5.4 million square feet) to 3 million square meters, and which can be developed into high-end integrated tourist resorts under leases lasting 30 years to 50 years, Taprantzis said.

The fund reviewed 562 of the estimated 6,000 islands and islets under Greek sovereignty. While some are already privately owned, such as Skorpios by the Onassis shipping heiress Athina Onassis, the state owns islands such as Fleves, which is near the coastal resort area of Vouliagmeni, and a cluster of three islands near Corfu. Taprantzis declined to name any of the islands.

Legislation needs to be passed to allow development of public property by third parties and reduce the number of building, environmental and zoning permits needed before the plan can proceed, Taprantzis said.

Outright sales have been ruled out because the returns for the Greek state wouldn’t be higher than a leasehold arrangement, he said. Greece will attract more investment if an island is turned into a resort, he said.

Selling public land outright is a politically sensitive issue in Greece. In 1996, Greece and Turkey almost went to war over who owned the uninhabited Aegean islet of Imia, known as Kardak in Turkey. A proposal by Greece’s lenders last year to increase revenue from asset sales including property drew opposition from then-premier George Papandreou, who said he’d legislate to prohibit such sales.

The country has only raised about 1.8 billion euros from its asset sales program, sparking criticism among European officials that the government isn’t moving quickly enough to reduce debt. Months of negotiations over the country’s debt restructuring earlier this year, the largest ever, and two general elections that threatened Greece’s membership of the euro area also held back progress on sales.

Takis Athanasopoulos, the fund’s new chairman, said the goal of generating 19 billion euros from state asset sales by 2015 can be met as long as Greece’s business environment is “appropriate.”

The fund will be able to gauge demand for Greek real estate as it revives a tender to develop a golf course on the island of Rhodes, Taprantzis said.

The fund chose six groups, which include London & Regional Group Holdings Ltd. and NCH Capital Inc., out of seven contenders to enter a second round of bidding for developing a strip of land on the island. A preferred bidder for the site measuring 1.85 million square meters, including an 18-hole golf course, is expected to be chosen by the end of February, the fund said yesterday.

“We are enthusiastic about the potential of this particular tender and what it reveals about market sentiment for Greek assets at this time,” Taprantzis said.

[Bloomberg]

ekathimerini.com , Wednesday September 12, 2012 (10:10)  
Greek markets plunge as SYRIZA digs in on challenge to austerity
Greek bank debt plummets as investors head for the exit
Increase in minimum salary is left aside for now
Decline in euro rate has exporters eyeing growth in 2015
Merkel rejects debt writedown for Greece
German Chancellor Angela Merkel and her finance minister have both ruled out a debt haircut for Greece, rejecting the new Greek government's demand to write off part of its 320 billion euro ...
US to work closely with Greece and EU to resolve differences, says White House
The United States will continue working closely with the new government in Greece and other European leaders to resolve differences that could improve Greece's economy, a White House spokesm...
Inside News
BASKETBALL
Panathinaikos preserves perfect home record
After yet another great performance at home, Panathinaikos defeated Galatasaray 86-77 in Athens on Friday to get to three wins in five games at the Euroleague top-16. The Greek champion shoo...
SOCCER
Gattuso: Unpaid OFI players couldn´t buy food
Former coach Gennaro Gattuso has lifted the lid on the plight of crisis-club OFI Crete which has been banned from playing in the Super League until it clears mounting debts with its staff. T...
Inside Sports
INTERVIEW
SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
“SYRIZA must realize that it is now the Greek government, not a party running an election campaign,” European Parliament President Martin Schulz, the first European official to visit Greece ...
COMMENTARY
Strange haste
The members of the new government must have a lot of confidence in themselves. Several days before announcing his program, Prime Minister Alexis Tsipras and his cabinet have opened up a mult...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Greek markets plunge as SYRIZA digs in on challenge to austerity
2. Greek bank debt plummets as investors head for the exit
3. Merkel rejects debt writedown for Greece
4. US to work closely with Greece and EU to resolve differences, says White House
5. Panathinaikos preserves perfect home record
6. Increase in minimum salary is left aside for now
more news
Today
This Week
1. Merkel rejects debt writedown for Greece
2. US to work closely with Greece and EU to resolve differences, says White House
3. Greek bank debt plummets as investors head for the exit
4. Greek markets plunge as SYRIZA digs in on challenge to austerity
5. SYRIZA must come up with ‘pragmatic solutions,’ Schulz tells Kathimerini
6. Why Greece went left while Europe turns to right
Today
This Week
1. Greek Elections 2015 | LIVE
2. SYRIZA heads for historic victory but without majority
3. Greek Elections 2015 | LIVE
4. Greek Elections 2015: The day after | LIVE
5. SYRIZA's win will test institutions
6. EU must accept that Greek debt relief is inevitable
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2015, H KAΘHMEPINH All Rights Reserved.