(Adds background, details)
ATHENS Jan 3 Greece's privatisation agency said
on Sunday it signed a 400 million euro ($434.3 million) deal
with Jermyn Street Real Estate Fund to sell Astir Palace
, a luxury seaside resort outside Athens.
Greece's top administrative court had blocked the sale of
the Astir Palace hotel complex in March, saying the town
planning scheme that Greece submitted violated Greek law as the
construction of a large number of residential buildings would
harm the natural and urban environment.
"Jermyn Street Real Estate Fund has signed the new agreement
to submit the amended special zoning and spatial plan for the
development of Astir Palace," the Hellenic Republic Asset
Development Fund (HRADF) said.
The fund represents investors from Turkey, Abu Dhabi, Dubai,
Kuwait and other Emirates.
The agency said the agreement ensured that the fund's
development plan for the resort was adjusted to the court's
"The whole process is expected to be completed within the
first half of 2016," HRADF said.
The agency is expected to cash in about 100 million euros
from the deal. The rest of the proceeds will go to National Bank
, Greece's largest lender, which owns about 85 percent
of the resort.
Privatisations have been a key condition of Greece's
international bailouts since 2010 but its state asset sales
scheme has produced poor revenues due to bureaucratic delays and
lack of political will.
So far, Athens has raised only about 3.5 billion euros from
state asset sales versus an original target of 50 billion euros.
($1 = 0.9210 euros)
(Reporting by George Georgiopoulos; Editing by Alison Williams
and William Hardy)