They are clearing Elliniko off its contracts

Olympic properties

 

The Privatisation Fund under the …holy mission to reduce the debt by selling or giving public real estate loins in long- term contracts, is undertaking the operation of "cleansing" the burdens left by the tenants of the Olympic buildings to the Greek government.

Investors interpret these movements as the enforcement of the unconstitutional, in their view, implementary law, whivh allows the Fund to the terminate contracts bypassing any other provision or law, though relevant sources indicate that individuals should abandon public real estate since they cannot meet the obligations of contracts and don’t pay rent.

Also, they consider that the disputed provisions of the implementary law (article 2, paragraph 9) will be an obstacle to development, "tripping up" future investments that will not serve their financial goals.

The big clean-up has started from Elliniko. It started recently with the termination of the contract for the premises of Canoe Kayak that are operated by a joint venture between J&P AVAX, GEK, BIOTER and Corfu Waterpark, by Elliniko SA, which was recently passed to the newly established fund at 100%. This is the company that has been set up to exploit the area of approximately 6.000 acres on the beach and has also undertaken to prepare the documentation to hand over the exploitation of Elliniko.

Moreover, it is no secret that investors of the Olympic buildings are in arbitration with the state the past few years, as the first are accusing the latter for not keeping up with their obligations because of delays in approvals of projects, and the latter say that investors are bad payers thus they demand compensations of millions and point toward the exit.

As government sources point out, Canoe Kayak is 5% of the area of Elliniko, that is approximately 300 acres of committed land that does not bring the expected returns for public funds.

Similar nagging that has reached the courts, occurred in the case of the real estate loin of Aghios Kosmas, leased to Sirios of the ATTIKAT group. However, information indicates that the case is a bit more complex since the area over the 400 acres has yet to pass to Ellinikos SA.

The reason is that the original plan was to move a section of the Elliniko area above Poseidonos, to the company. Mature thinking prevailed, and the remaining part which is beneath Poseidonos is soon expected to pass on Elliniko SA.