ECONOMY

Ministries’ objections could derail sale of Astir Palace Resort

ministries-objections-could-derail-sale-of-astir-palace-resort

The sale process for the Astir Palace Resort, co-owned by National Bank and the Greek state, is at risk of getting tangled up in the political clash between the government and state sell-off fund TAIPED.

Three years after the tender for the resort at Vouliagmeni, southern Athens, was declared, and following a year of consultations between the preferred bidder and TAIPED and National Bank on changing the construction terms on which the 400-million-euro bid had been based, the development plan could come up against insurmountable obstacles even before it reaches the Council of State for approval.

Well-informed sources have told Kathimerini that at least two ministries have raised objections to the new zoning plan for the property and are preparing to issue a rejection proposal to the Central Council of Administration, which is to issue its recommendation to the Council of State. TAIPED officials said the presentation of the plan for the Astir Palace “had gone very well” and that they were not aware of the objections coming from authorities such as the Environment Ministry.

While this may not be the first time members of the government have locked horns with TAIPED, it will be the first time the government has tried to undermine the effort by a Greek systemic bank to utilize its non-banking assets, in accordance with its restructuring plan. National stands to receive 300 million euros from the sale of the resort to the Jermyn Street Real Estate Fund, with the remaining 100 million going to TAIPED.