The Hellenic Republic Asset Development Fund (TAIPED) announced yesterday, Thursday, 31 January, that it accepted a 23 million euro bid from US-based NCH Capital* for the development of a property in the Kassiopi area on Corfu.
According to a statement released by the fund, NCH Capital was will be granted the rights of the Kassiopi plot for a period of 99 years. The land thus remains the property of the Greek State.
The investment adds up to some 100 million euros that includes the 23 million euros for the acquisition of the leasehold, another 2.3 million euros for the possible participation of the fund in the future added value of the asset after six years and an estimated amount of 75 million euros for the development of the plot.
The total area of the plot at Kassiopi is 490,000 square meters (some 120 acres) in which the investor will have the right to develop mild tourism projects of about 36,000 square meters. More than 320,000 square meters will remain accessible to the public.
According to the fund, the investment at Kassiopi is expected to create hundreds of new jobs.
The fund has also approved tender procedures for another four projects.
According to reports, the Kassiopi deal is the first successful agreement of a privatization program that involves state-owned land. The program is part of the terms of Greece’s EU/IMF bailout.
* NCH Capital is based in New York, USA, and has over $3.5 billion of capital under management, with funds across four asset classes: listed equity, real estate, agribusiness and private equity. It operates 21 investment funds.