While recession is restlessly breaking the back of the Greek economy, the National Bank of the country is looking to sell the famous Astir Palace luxury resort in Athens. The 3.3 million-square-foot complex is part of a general privatization program aiming at providing the cash-stripped country with some liquidity.
An extensive Blοomberg report noted that investors have already expressed their interest and the country wants to make the best possible profit out of it. The Greek government must raise 50 billion Euros from public assets by 2020 to meet the conditions of its bailout package and secure the next bailout funds from the EU and IMF. Political turmoil in Greece postponed the privatization plans, but now it seems that Astir Palace and Eleftherios Venizelos International Airport could be the first assets to be sold from the portfolio of the Hellenic Republic Asset Development Fund’s properties.
According to Bloomberg, Astir Palace Hotel SA (ASTIR), the public company that owns the resort, has a market value of 166 million euros. Experts note that selling the luxury resort in Vouliagmeni would mean a change in politics for Greece which has so far avoided selling its properties outright. There has been more interest in purchasing rather than leasing.
Famous for its well-known guests such as Frank Sinatra, Jane Fonda, Nelson Mandela and others, Astir Palace opened in 1960. Since 2003, its financial records have shown a decline that eventually led to a debt of 20.7 million euros. The National Bank of Greece, the country’s biggest lender, owns 85 percent of Astir Palace Resort.
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