Attractive Locations
“In terms of return on investment, it probably only pays off in the most attractive or unique locations,” said Jacoline Vinke, author of three books on Greece’s small hotels and guesthouses. “A revamped Xenia on a beautiful island or close to the sea is likely to work, but I would not bet my money on any Xenia that does not have a great location.” An estimated record 20 million visitors are heading to Greece this year, fueling hopes of a return to growth after a six-year recession. Even with a bumper tourism year, Greece is struggling to draw the foreign investment imperative to create jobs in a nation with the highest unemployment rate in Europe. The fund’s biggest deal was the sale of Hellenikon, the old Athens airport site that is Europe’s largest unused tract of urban real estate, twice the size of New York’s Central Park.
‘Perfect Opportunity’
Hellenikon had been unused since being corralled for the Athens 2004 Olympics amid political opposition and legal fights.
Lamda Development SA, backed by China’s Fosun Group and Al Maabar, a unit of Abu Dhabi sovereign fund Mubadala Development, bought it for 915 million euros after a more than two-year bidding process. GSO Capital Partners, a unit of private-equity firm Blackstone Group LP, now owns 10 percent of Lamda.
Meanwhile, Taprantzis counters arguments Greece is selling its heritage. Properties like the Villa de Vecchi have been “hidden, buried,” he said.
“Now there’s a perfect opportunity to showcase them, not just for Greeks but to foreign visitors,” he said. “No one is going to pick up the building and take it with them. The investment will contribute to the upgrade of our tourism product and will create new jobs.” (Bloomberg)[eap_ad_3]