Will Thessaloniki port sale affect real estate market?

Thessaloniki port sale

Yes, but not right now, says Harris Papacharalampous, vice president of Resolute Asset Management, Greece.

Talking to greekguru.net, Papacharalampous says that no material changes are expected in property prices in the short term from the 1.1 billion euro agreement announced earlier this week, as was the case when Piraeus port was privatized. Down the track, however, the deal will be felt.

“The main impact will be the exploitation of the land plots within and near the port as logistics/supporting to the port uses, with a marginal increase in the demand for office spaces,” he said. “Long term, indirectly through the increase of gross domestic product probably we will see a more material increase in the absorption rate for the office sector.”

Greece's privatisation agency (HDRAF) announced on Monday that a German-led consortium is the highest bidder for a two-thirds stake in OLTH, the operator of Thessaloniki's port in northern Greece.

Private-equity firm Deutsche Invest Equity Partners, France’s Terminal Link and Greece’s Belterra Investments, controlled by Russian-Greek businessman Ivan Savvides, offered 232 million euros for 67 per cent of OLTH shares.

As part of the deal, the consortium will also take over the operation of the port for 34 years, bringing in an additional 170 million euros in revenues for the Greek state.

The consortium will also invest 180 million euros over seven years to upgrade the container terminal and other facilities, with another 500 million euros of investments and dividend payments projected over the concession period, HDRAF officials added.