| Greece concluded on Thursday the lease of a 108.3-acre plot, Kassiopi, to NCH Capital for 23 million euros. |
NCH Capital, a New-York based investment fund, plans to spend about 100 million euros to build a luxury seaside holiday resort on the Greek island of Corfu, it said on Friday, bringing foreign investment into the cash-strapped country.
Under a privatisation scheme, part of a third international bailout signed last year, Greece concluded on Thursday the lease of a 108.3-acre plot, Kassiopi, to NCH Capital for 23 million euros.
Greece’s privatisation agency has said that NCH will pay the country an additional 2.3 million euros if it achieves a specific target but did not indicate the nature of the target.
Privatisations have been a key condition of Greece’s three international bailouts since 2010, but the scheme has so far produced only 3.4 billion euros in revenue, against an original target of 50 billion euros, because of political resistance, bureaucracy and a heavily unionised public sector.
The Kassiopi project on Corfu, a popular destination for British, German and Russian holidaymakers, was first tendered in 2012.
Greece is set to miss a 2.5 billion euro revenue target from state asset sales this year and raise only 500 million euros. It is aiming for proceeds of 2.6 billion euros next year.
NCH Capital manages about $3 billion of funds and has extensive experience in international investments across Europe