The Hellenic Republic Asset Development Fund on Thursday announced the conclusion of a privatization of the Kassiopi area on the island of Corfu with the signing of the transfer of the equity capital of “New Corfu Property Investments SA”, a special purpose vehicle set up by HRADF for the exploitation of the property and the payment of a first tranche worth 10 million euros.
The Board of Directors of the Hellenic Republic Asset Development Fund (HRADF) had approved the binding financial offer by a joint venture by NCH New Europe Property Fund II LP and NCH Balkan Fund LP. NCH Capital will pay 23 million euros the right of use, while an additional 2.3 million euros will be a possible participation of HRADF for a future increased value of the property after six years through an earn-out clause. The investment is expected to reach 75 million euros.
The total area of the property at Kassiopi, Corfu, is 490,000 square meters, in which the investor will have the right to develop a gross buildable area of about 36,000 square meters.
NCH Capital is based in New York, USA, and has over 3.5 billion US dollars of capital under management, with funds across four asset classes: listed equity, real estate, agribusiness and private equity. It operates 21 investment funds.
Evangelia Tsitsogiannopoulou, HRADF Director, said that the exploitation of the “Hermit” region in Corfu will have significant benefits to the local society and noted that the project was expected to create touristic, economic and social development in the Ionian islands in general, strengthening the region’s tourism product and tourist arrivals.