ATHENS Jan 31 Greece's privatisation agency on
Thursday picked U.S. private equity fund NCH Capital to develop
land on the island of Corfu for tourism, in a 23 million euro
deal that is part of the government's asset sales agenda to pay
down public debt.
State asset sales and concessions are a key part of Greece's
efforts to pull back from the brink of bankruptcy. Athens has
raised about 2 billion euros ($2.71 billion) since 2010 and is
targeting proceeds of about 11 billion by the end of 2016.
"It is the first direct foreign investment in public land in
the last 15 years," the Hellenic Republic Asset Development Fund
said in a statement.
Under the deal, New York-based NCH Capital will buy all of
the shares in a special purpose vehicle where the government
will transfer rights to 490,000 square metres of land in
Kassiopi on the western Greek island for 99 years.
NCH Capital, with about 3.5 billion euros in assets under
management, will spend 75 million euros on mild tourism
development on 36,000 square metres, creating hundreds of jobs,
the agency said.
($1 = 0.7367 euros)
(Reporting by George Georgiopoulos; editing by Ron Askew)