The sale of the Cassiope property in Corfu by the Greek State will be completed on November 9, four years and nine months after the privatization procedures began.
NCH Capital will pay 23 million euros and will acquire 100% of the Special Purpose Societe Anonyme shares, in which the Hellenic Republic Assets Development Fund (HRADF) has transferred the right of property for a period of 99 years. The transaction will be accompanied by a public signing of the contract at Zappeion at noon on Wednesday. Cassiope was one of the first privatizations conducted by HRADF. The deal closed in January 2013 and was met with fierce reactions by opposition parties in Greek Parliament at the time.
The Cassiope privatization procedures were blocked during three different administrations, showing that bureaucracy and petty political games can undermine efforts to pull the country out of the crisis. At the same time, the delays send a negative message to foreign investors who are considering investing in Greece.
The Cassiope project is a direct investment in public property, totaling 100 million euros, of which 23 million euros go for the compensation for the acquisition of the right of the land, and HRADF will receive an additional 2.3 million euros after six years when the value of the property has gone up. NCH Capital will invest 75 million euros for the property development.
The total area of the land in Erimitis beach is 490,000 square meters, of which more than 320,000 will remain accessible to the public. In the remaining area, the investor will have the right to utilize approximately 35,000 square meters for tourism development.
NCH Capital is to build a holiday resort/tourist village which, inter alia, will a include a 5-star hotel with 180 beds, 84 tourist houses with 123 apartments, a 57-boat capacity marina, along with a desalination plant, waste water treatment facility as well as projects for the protection of the forest area and small wetlands.
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