They are planning to sell 12% of Ellinikon for houses

The complex ownership status of the area remains a problem

 

A single area of 6,200 acres which will include the coastal fillet of Aghios Kosmas with a coastline of 3.5 km, will be offered to private investors for the exploitation of Ellinikon.

The process of the open call for interest commenced yesterday, it includes two stages and is not expected to be finished before the end of 2012.

One of the major problems of the concession still is the complicated ownership status of the area and the fact that Ag. Cosmas, along with sports facilities and the marina have not yet been passed to Elliniko SA as it is an Olympic facility that is leased for 25 years from Seirios, the company of Panagiotis Panousis.

According to the plans, the Fund for the Development of State Private Property (TAIPED), which has the whole area and will handle the competition, is willing to sell up to 12% of the land for housing construction and allocate the remainder on a long-term lease for up to 50 years.

According to the call of interest, from the 480 buildings comprising the former airport, most will be demolished by investors and only four are considered as listed: the creation of the famous architect Eero Saarinen, which hosts the building of the former East Airport and three hangars of the Air Force.

After the concession, the Privatization Fund will retain a minority equity participation of Elliniko SA, in order to have a share of the surplus value that will arise from the use of the land. The proposed uses of land include homes, tourist accommodation, shops, business parks and offices, recreation centers and health care. It is expected that investors will be allowed to consider other uses too such as a central park enriched with activities, public green areas and other outdoor spaces, limited buildings and facilities for use by public services, public infrastructure etc.

The first phase of the process provides that the interest should be expressed in writing until March 30, 2012. The Fund will select the candidates who meet the qualification criteria and invite them to participate in the second phase of the sale’s process. At this stage, the invitation to submit an offer will set out the criteria for the selection of the final investor.

The evaluation process may involve the relevant planning authorities. The investor should have expertise in project development of similar size and characteristics. The Fund believes that the second phase will last from 5 to 7 months after the offer invitation.