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Newsletter December 2011

HIGHLIGHT

The Development of Hellinikon

Greece is launching its programme to develop the vast tract of land on the Athens Riviera, the site of the former Athens Airport.
 
The development of the site at Hellinikon, the site of the former Athens Airport on the southern coast of the capital, is one of the largest urban regeneration programmes worldwide. The land is 1.8 times the size of Central Park in ΝΥ, 2.5 times the size of Hyde Park & Kensington Gardens in London, or about 40 times the size of the National Garden in Athens.

Greece launched the tender on December 8  to attract international investors to one of Europe's biggest real estate projects.

The Hellenic Republic Asset Development Fund, which was established to manage Greece's privatisation programme, announced an Invitation for the Expression of Interest for the acquisition of a majority shareholding in Hellinikon S.A., the entity which will hold the rights to manage and develop the site.

The Preferred Investor must ensure that Hellinikon S.A. carries out the development of an area of more than 6.2 million square metres of land and real estate assets.

On completion of the transaction, and in line with a business plan that will have been submitted by the Preferred Investor, Hellinikon S.A. intends to redevelop the site into a mixed-use landmark location of national significance. The project will enhance the attractiveness of the Athens area as a tourist destination and as a business and leisure centre.

Costas Mitropoulos, CEO of the Hellenic Republic Asset Development Fund, said: "We are delighted to be launching the long awaited Process for such an attractive and strategically important asset.

“This is a rare opportunity for the successful investor to develop a world class destination benefiting Athens, Greece and the Eastern Mediterranean.

"We expect significant investor interest in this process, for a total investment which will stimulate growth in the Greek economy."

The process is aimed to attract strategic investors, with a vision for the transformation of this prime piece of real estate into a world-class urban development project. In this first phase of the process, interested parties will be requested to express their interest and demonstrate they fulfill the criteria outlined in the Invitation for the Expression of Interest, for qualifying for the second phase. Expressions of Interest are required to be submitted by no later than 17.00 Greece  time on 30 March 2012. Prequalified investors will then be invited to participate in the more detailed second phase of the Sale Process, at the end of which they will be requested to submit binding financial offers, together with funding commitments, an underlying business plan and a bid bond.

Interested Investors may participate alone or by way of a consortium or joint venture. It is expected that the Preferred Investor will be announced by the end of 2012.

Citigroup Global Markets Ltd. and Piraeus Bank S.A. are acting as financial advisors to the Hellenic Republic Asset Development Fund on this Process.