The sale of the landmark coastal Astir Palace resort to Apollo Investment Holdco – a subsidiary of consortium Jermyn Street Real Estate Fund IV LP – was completed on Thursday, with the project ready for take-off four years after the procedure began.
Apollo Investment Holdco paid a total of 393 million euros for the majority stake of the listed Astir Palace, located in the southern Athens suburb of Vouliagmeni. The investor had submitted the highest bid for a 90 percent stake in Astir Palace in February 2014. The deal involved the Hellenic Republic Asset Development Fund (HRADF), the National Bank of Greece (NBG), a major stakeholder of the company and the strategic investor.
“The favorable outcome of the Asteras sale is not only a significant investment agreement, but an excellent example of beneficial and productive cooperation between all public institutions and the private sector paving the way for the country’s growth,” HRADF chairman Stergios Pitsiorlas said after the deal was inked.
The redevelopment plan aims to elevate Astir Palace to a world-class premium destination. The project is expected to be completed in 18 months and will comprise the renovation of both Arion and Nafsika hotels, the bungalows and a significant upgrade of the marina. The plan also includes the development of 13-15 luxury residences in the wider area of the disused Aphrodite hotel, restaurants, bars, shops, cultural and sports as well as conference facilities.
“The finalization of the Astir Palace sale highlights NBG’s commitment to the implementation of its strategy and as well as to efforts to attract international investment to our country,” said NBG CEO Leonidas Fragkiadakis, adding that the transaction marks the recovery of investor confidence in Greece, thus paving the way for other investors to express interest in the long term.