A Chinese-backed group is set to win the right to develop the former Athens airport of Hellenikon.
The €915-million deal to build at the prime seaside property, has been struck by a consortium headed by Greece’s Lamda Development, and backed by China's Fosun and Abu-Dhabi-based property firm Al Maabar.
A statement on the Hellenic Republic Asset Development Fund (HRADF) website, the country's privatsation agency, says the sole bidding group raised its initial offer by 25%.
The HRADF says 33% will be paid upon completion of the agreement, and the rest will be deferred within 10 years, according to the terms of the relative contract.
The consortium has also agreed to undertake an investment of €5.7 billion, out of which €1.25 billion corresponds to infrastructure costs and the metropolitan park, which will be exclusively assumed by the company.
“The board of HRADF will review the above, as well as the recommendation of the council of experts and will decide within the coming days if a preferred bidder can be declared. After the completion of the tender process, a press conference will be held,” the HRADF statement also says.
Advisers Citigroup and Piraeus Bank will submit their opinion on the improved bid in the coming days.
A third of the amount offered for the 99-year-lease of the 620-hectare-property, will be disbursed immediately on completion of the deal, with the rest to paid out within 10 years, the HRADF statement adds.
Hellinikon was the international airport of Athens for 60 years up until 2001, when it was replaced by the new Athens International Airport, and is located 4.3 miles south of Athens.