Published on 14/12/2015 in Privatisations
NCH proceeds on € 75 million tourism investment in Corfu
NCH Capital, winner of the international competition to develop the Kassiopi Plot in Corfu, has announced plans to invest € 75 million to develop an integrated hotel resort and marina on the island.
The Hellenic Republic Asset Development Fund (TAIPED) tendered the Kassiopi Plot in 2012. New York-based investment firm NCH won the competition for a leasehold of 490,000 square meters (120 acres) of land which includes a private woodland and coastal frontage of 725 meters. NCH bid € 23 million for the 100-year leasehold.
NCH Capital has announced its intention of investing € 75 million in developing an integrated tourism resort comprising a hotel, marina and vacation homes, transforming the Kassiopi area into a tourism destination.
Since its announcement, NCH has faced zoning and licensing complications along with criticism from the local community and authorities. In contrast, the Corfu Chamber of Commerce welcomed the investment as an opportunity to strengthen the local economy and assured its close collaboration and commitment to a successful realisation of the project.
Only 7% of the land area will be used for property while 93% will remain green area with the majority of land freely accessible to the public. All claims against violation of public property rights and Natura environmental protection policies have been rejected by the Supreme Court and environmental licensing is expected to be completed in the near future.
Despite Greece’s financial crisis, tourism remains the country’s major pillar of growth with an expected total contribution to GDP of 19.8% in 2015 and generating over € 40 billion in total demand. International arrivals have increased to an estimated 25.5 million in 2015.
This investment example illustrates the opportunities and difficulties of investing in the Greek tourism sector.