The Greek Council of State rejected last week plans for the sale of a majority stake in the historic coastal hotel resort Astir Palace to consortium Jermyn Street Real Estate Fund IV LP.
Jermyn Street Real Estate Fund IV LP had submitted the highest bid at 400 million euros for a 90 percent stake in Astir Pallas, located in the southern Athens suburb of Vouliagmeni. Under the deal, the National Bank of Greece would collect 300 million euros, with 100 million euros going directly to state coffers.
The investors are now looking into ways to complete the transaction, which was blocked due to terms in the deal that foresaw among others the construction of new houses on a section of the peninsula.
According to Greek daily Ta Nea, a new updated proposal, which will include a new spatial plan and fewer residential dwellings, is set to be tabled this month.
Operations and sales at the hotel resort are currently being run by Astir Palace Vouliagmeni AXE, following the termination of the contract with Starwood Hotels & Resorts, which had taken over management of the complex in 2006
Plans of the new owners, comprised of investors from Turkey, Abu Dhabi, Dubai, Kuwait, included the renovation of two of Asteras’ hotels to seven-star luxury resorts, the development of 13-15 residential areas and the upgrade of the marina.