Greece’s privatization agency has sold for €400 million (US$434.3 million) the Astir Palace resort outside Athens to Jermyn Street Real Estate Fund.
The Greek court blocked the sale in March, saying plans for the area violated Greek law as the construction of residential buildings would harm the natural and urban environment. The buyer agreed to submit amended special zoning and spatial plans for the development that is adjusted to the court’s opinion.
The new agreement includes two hotels to replace the Arion and Westin units, 13 luxury villas and the upgrade of the marina.
The National Bank of Greece is the biggest stakeholder of the property and will get €300 million from the sale, with the remaining €100 million directly to Greek government coffers.
So far, Athens has raised only about €3.5 billion from state asset sales versus an original target of €50 billion.