Monday, February 18, 2008

Greek Govt Planning $1.3 Billion Sale Leaseback of State Property Portfolio

Kathimerini - February 16, 2008

A plan by the Ministry of Finance is entering its final stages for the exploitation of a major part of state-owned properties. This will be done under a sale-and-leaseback scheme worked out by the Greek Public Real Estate Corporation (KED).

According to reports, KED has already finalized the list of state-owned properties that will make up the basic core of the specific portfolio. Its value is expected to amount to some –1.3 billion. The plan involves 26 properties, some of which are still under construction.

The main objective of KED is to include buildings “of a younger age,” currently occupied by state services, ministries, tax offices and police offices. The young age of a property is envisaged as making the relevant bids more attractive to private investors.

Each bid is to be drafted according to the special features of each property. In some cases, the model to be selected will be “lease and leaseback,” while others would follow the “sale and leaseback” model.

Property market operators are looking forward to the program’s commencement, stressing that it will almost certainly draw much interest from firms specializing in property investments, given that the specific product offers all of the desired qualities for such companies, and in addition guarantees steady and secure leases.

Eurobank Properties, according to reports, is to be among the first private companies to claim involvement in the scheme, when implemented.

Properties making up the sale-and-leaseback portfolio include buildings used by the ministries of Tourism and Culture, a Transport Ministry building on Mesogeion Avenue, the building occupied by the Press and Media Ministry, as well as the National Statistics Service building.

The portfolio’s final composition is to be decided next month, and its overall value is expected to be higher by at least –500 million, compared to the initial planning. Sphere: Related Content

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