State expects 1.7 bln euros from properties

State privatization fund TAIPED has set in motion the process for the utilization of properties with an estimated total value of 1.7 billion euros.

It has already reached agreements for the utilization of properties worth 420 million euros, while others worth 180 million euros have entered the tender process. Another batch of real estate assets worth 980 million euros is being prepared by TAIPED to enter tenders.

The latter category includes the old Athens airport at Elliniko, which is one of the most important assets in TAIPED’s portfolio, and the course of its utilization will go a long way toward determining the final amount of the 2014 sell-off revenues and the success of the whole privatizations program.

Among the property utilizations already agreed are the sale and leaseback of 28 buildings that should bring in 261 million euros by the end of the year, pending a decision by the State Audit Council. Other deals include the utilization of the International Broadcasting Center (IBC), which houses the Golden Hall shopping center in Maroussi, the Kassiopi plot on Corfu, the Paliouri estate at Halkidiki and the five properties abroad, in London, Brussels, Tashkent, Belgrade and Cyprus.

So far this year cash revenues have been poor, as only a few of those agreements have been completed, with completion meaning the signing of the contract and the payment of the price by the investors. One such completed deal is that of the IBC (81 million euros), and the former Greek Consulate in London (27.5 million euros), which was one of the five properties abroad sold. In the next few days another 3.2 million euros will be cashed in from the sale of the property in Brussels. On the other hand, the deal with British company NCH for the Kassiopi plot has been in a state of limbo since January.

Among the properties in the tender process are the development of the estate at Afandou on Rhodes and that of the Astir Palace hotel at Vouliagmeni. TAIPED values the two assets at a combined 180 million euros, most of which would come from the latter.

A few days ago another 300 properties were transferred to TAIPED’s jurisdiction, which now controls a total of 595 properties. A further batch of real estate assets is being prepared for transfer to TAIPED in order to satisfy the country’s obligation to its creditors for the transfer of 1,000 state properties to the fund by the end of 2013, according to the terms of the memorandum Athens has signed.

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