According to the draft of the deal for the development site in Elliniko, the Greek state will collect 30% of the profits generated over the duration of the 99 year lease.
Privatization fund TAIPED is completing its draft today, with the three interested investors (Lamda Development, Elbit and London Regional Properties) expected to submit offers a month later.
Aside from collecting 30% of profits above a set amount, the draft makes provisions for the operation of a casino, although such a license is not included in the deal and must be secured separately.
The interested investors have requested on their behalf that a provision be included to ensure tat the Greek state will not change land use legislation of the area for about 10-15 years. Given the financial and strategic scope of the development, the investors want to ensure that conditions do not change dramatically.
Recently many foreign investment funds – mostly American, such as Third Point, Baupost Group and Paulson & Co – have shown interest in the development and are considering making offers. The deadline for the submission of further offers will be a month after the draft deal is published.
