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Newsletter April 2012

FDI GREECE

International Tenders Spearhead Development of National Assets

Greece is launching an ambitious programme to develop national assets to enhance economic development and to raise revenue at this critical time.

Kassiopi, Corfu
The Hellenic Republic Asset Development Fund launches the international tender process for the commercial development of a property located in the Kassiopi area of Corfu.

The international tender provides for the development potential of the property, through the sale of the right of surface, which will be extended up to one hundred (100) years. The sea-front property of approximately 500,000 m2 is located on the northeastern coastline of Corfu, just 38 km from the city centre, with significant development potential.

Adjacent to the Kassiopi Peninsula, Island of Corfu. Sea-front property situated c. 38 km north of the city of Corfu and its international airport. The total number of foreign visitors to the Island exceeds 700,000 annually, according to the Hellenic Chamber of Hotels. The majority of visitors are British, followed by Germans and Russians. The average tourism period is 5 months (May – September), the peak tourist season is July-August, and Greek Orthodox Easter (in springtime) is also considered peak season, given the traditional festivities taking place in the island.

See complete announcement here.

Acquisition of the Usufruct of Olympic Games Property
The Hellenic Republic Asset Development Fund SA launched an invitation to solicit Expressions of Interest for the acquisition of the right of exclusive use, management and operation of the International Broadcasting Center (IBC) for a period of 90 years. This invitation marks the start of the acquisition process of the asset, which will be conducted in two phases. IBC’s size and location present a unique opportunity to invest in a premier, developed, urban retail property, currently leased on a long-term contract. In addition, IBC also offers medium-size development opportunity for the remaining portion of the property that is not leased, but is already built. IBC is one of the largest single structure buildings in Greece.

IBC is the building that accommodated the radio-television facilities of the 2004 Olympic Games and is located in Maroussi, Athens on Kifissias Avenue, an avenue that is home to what is considered to be the prime office market of Athens.

See complete announcement here.

Greece Announces Tender for Hellinikon
In December, the Hellenic Republic Asset Development Fund (HRADF) announced a tender for the majority shares of Hellinkon S.A., the site of the former Athens Airport.

By decision of the Interministerial Committee for Restructuring and Privatisation, shares of Hellinikon SA were transferred to Hellenic Republic Asset Development Fund (HRADF). HRADF has, in turn, assumed responsibility for the design and implementation of the site’s development process, assisted by financial, legal and real estate advisors.

HRADF plans to redevelop the 620 hectare site into a mixed-use, landmark property of national importance and international visibility. The new development will enhance the attractiveness of the greater Athens area as a tourist destination and as a top business and leisure destination in the eastern Mediterranean.

The Hellinikon project will also stimulate economic growth through the creation of jobs during the planning, execution and operation of the redevelopment of the site.

The following companies have been named as advisors for the Hellinikon sale:
Financial Advisors
• CitiGroup Global Markets
• Pireaus Bank

Legal Advisors
• Avgerinos and Partners Law firm
• C. Papacostopoulos & Associates
• Degleris & Associates
• Fortsakis Diakopoulos Mylonogiannis & Associates Law Firm
• Dewey & LeBoeuf

Real Estate Advisors
• Hill International
• Dimand S.A.
• Proprius member of Cushman & Wakefield
• Takis Gavrilis & Partners Design Group
• LDK Consultants

Further information and updates can be found on the Hellenic Republic Asset Development Fund's website (www.hradf.com)

Tender for the Greek State Lotteries Proceeds to Phase II
The Board of Directors of the Hellenic Republic Asset Development Fund S.A., decided unanimously, at its January 11 meeting, to qualify the following candidates for Phase II of the tender:

1. The Österreichische Lotterien GesellschaftmbH
2. The consortium of the companies Sisal SpA, Damco Energy S.A. and Damlot S.A.
3. The consortium of the companies OPAP Investment Limited, Lottomatica Giochi e PartecipazioniSrl, Intralot Lotteries Limited and Scientific Games Global Gaming S.a.rl

At the end of Phase II, the candidates will be asked to submit their binding financial offers for the granting of a license for the exclusive production, operation, circulation, promotion and management of the state lotteries. The qualified candidates will receive the process letter for the second phase and the invitation to bid within the next five weeks.

Further information and updates can be found on the Hellenic Republic Asset Development Fund's website (www.hradf.com)

HRADF CEO Mitropoulos Releases Detailed Privatisation Timetable
The CEO of the Hellenic Republic Asset Development Fund (HRADF), Mr. Konstantinos Mitropoulos, speaking at the 1st Economic Forum Greece - United Arab Emirates, released the timetable for subsequent steps in the national privatisation effort. Such steps include:

January
• Begin the process of privatising state natural gas company (DEPA) and its subsidiary Hellenic Gas Transmission System Operator (DESFA)

February 
• The process for the IBC Building (Golden Hall) in Maroussi will begin.
• Extensions  will be made for the areas of Kassiopi, Corfu and Afandou, Rhodes.
• Astir Palace Hotel will enter the sale process in February, in cooperation with the National Bank, its main shareholder
• During this month, the Hellenic Horserace Betting Organisation (Odie), Larco, Greek Defense Systems (formerly ELVO & PYRKAL) will also enter the list.

April
• Privatisation process will begin for Hellenic Petroleum SA
• The sale process will begin for Egnatia Odos (National Road)

In the second half of 2012, the procedure will begin for the privatisation of regional airports as well as 12 ports throughout the country.

By the end of the year, HRADF also plans to seek purchasing interest for EYDAP (Athens Water Supply and Sewerage Company), EYATH (Thessaloniki Water Supply and Sewerage Company) and a 29 percent stake in betting firm OPAP.

Greece Announces International Tender for Kilkis Mine
To help realise Greece’s vast mineral wealth and promote national development, the Ministry of Environment, Energy and Climate Change recently announced an open international tender for a Public Mining Area. The 91 km2 up for tender includes the areas of Metaxohori, Vathi, Gerakari, Fyska, Kendriko, Mylochori and Antigoneia in the Prefecture of  Kilkis. It is estimated that the site’s reserves of gold, copper amount to €1.5 billion while total mineral reserves amount to approximately €7 billion.

The Kilkis investment also stands to benefit the Kilkis community tremendously and the community will play an important role in the investment process. Candidate investors will be assessed for programmes of Corporate Social Responsibility (CSR) and all actions that concern social, economic and cultural activities at local level. In addition, preference will be given to candidate investors who maximise recruiting from the prefecture of Kilkis. In the selection period, heavy emphasis will also be placed on minimising the environmental impact of mining activities and, thus, preserving the natural beauty of the Kilkis region.

Commenting on the announcement, Deputy Minister, Mr. Yannis Maniatis, said: "The country's mineral wealth is a key pillar of economic development and support of our society. We mobilise all forces to exploit the wealth generously given to us by nature. With respect for the environment and with substantial benefits for the local community, we are highlighting the hidden and untapped resources of our country. In the first half of January we will invite all institutional representatives of Kilkis in order to start informing local communities with scientific evidence and full transparency."