REG - Minoan Group PLC - Update on new Law on Strategic Investments

MinoanAnnouncement

09/12/2021 07:00

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RNS Number : 0413V  Minoan Group PLC  09 December 2021

9 December 2021

Minoan Group Plc

("Minoan" or the "Company")

Update on new Law on Strategic Investments

 

This announcement contains inside information for the purposes of Article 7 of
the UK version of Regulation (EU) No 596/2014 which is part of UK law by
virtue of the European Union (Withdrawal) Act 2018, as amended ("MAR"). Upon
the publication of this announcement via a Regulatory Information Service,
this inside information is now considered to be in the public domain.

 

Highlights

 

·    Passing of long-awaited new legislation in Greece relating,
inter-alia, to inward investment into the country, likely to have significant
benefits for Minoan's Itanos Gaia Project in Crete (the "Project");

·    Commercial, regulatory, and legal framework created as a result of
the new legislation, designed to maximise attractiveness of Greece as a market
for international investors, whilst minimising planning and administration
timetables and procedures;

·    The intention to create a new "investor-friendly" environment in
which the Project will be advanced  may be highlighted by this month's sale
of a large plot of land in Crete for future tourism and leisure development to
an entity controlled by international investors.

Background

 

Further to its announcement of 1 December, the Company is pleased to provide
further details relating to the new "Law on Strategic Investments" (the
"Legislation"), which has recently passed through the Greek Parliament.
Amongst its features, the Legislation creates new sets of incentives and
assessment procedures with which the Greek government is trying not only to
attract strategic investments, but to see them realised in a measurable and
timely manner.

 

The Legislation is aimed at consolidating the perception that Greece is a
reliable, transparent and attractive international investment destination and
to formulate a modern investment strategy oriented to the challenges and
transformations of the international economic environment through the creation
of a single "Law on Strategic Investments". This Legislation will be a
reference point for anyone wishing to investigate and choose the country as an
investment destination as set out by Alternate Minister of Development Nikos
Papathanassis.

 

The Board of Minoan regards these developments as being of the utmost
importance and relevance in terms of the Company's immediate outlook. In
particular, there are three areas where the changes provided for in the new
Legislation are likely to have a direct, significant and beneficial effect on
the progress of the Project.

 

These are:

 

a) Strategic Investments planned on land owned by Ecclesiastical
Foundations are now to be    allowed to use "Epiphania", a right which can
most easily described as akin to an English ground lease, and which provides a
mechanism to achieve terms of up to 99 years. The use of Epiphania would
enhance significantly the ability of investors to finance their investments
through the banking system;

 

b) The law provides for a procedure to allow for changes to business
plans previously approved by the Government; and

 

c) Building permit pre-approvals will be granted centrally rather than through
the relevant local authority.

 

Minister of Development Adonis Georgiadis said, "The aim is for the interested
investor to follow the development of his investment plan through his mobile
phone. The main goal with the changes in these procedures is now to reduce to
60 days the settlement of applications (investment plans) and  100 days for
the final submission for an investment law, something that previously needed
up to two and a half years."

The law provides for additional benefits for Strategic Investments, including
tax incentives, grants, the use of coastal land and the adjacent sea bed,
provisions for auxiliary infrastructure as well as other changes to ensure
easier and faster progress through the bureaucracy.

Greece

 

In the last few months it has become clear that the Greek economy has
rebounded strongly after the last financial crisis and the worst effects of
the pandemic, recording growth of in excess of 13% in quarter 3 of 2021
(increased tourism). On a seasonally adjusted basis, Greece grew at 2.7%
compared to the Eurozone average of 2.2%.

 

Most sectors of the Greek real estate market have become more active in the
last 12 months. Residential property prices have shown significant growth of
over 8% year on year after growth of over 10% in the previous year.

 

The Company notes also the recent announcement of the sale of an 85 acre plot
of land on the North Coast of Crete near Heraklion for a sum of €40m. This
plot carries the right to build approximately 59,000 m2 the main use of which
will be tourism and will include a casino, hotel and residential
accommodation.

 

The Legislation referred to above will be followed by a new Development Law,
which will set out the details of new and revised incentives for investors and
investments. This is expected shortly.

 

Chairman's Comment

 

"I am extremely pleased by the changes brought about by the new Law on
Strategic Investments, which will be complemented by the new Development Law.
Taken together with the numerous changes to planning laws, which Greece has
enacted over the last few years, it means that current and future trends in
tourism, including Minoan's Itanos Gaia Project, will allow the Company to
move forward with confidence."

 

For further information visit www.minoangroup.com (http://www.minoangroup.com)
 or contact:

 

 Christopher Egleton              christopher.egleton@minoangroup.com
 Bill Cole                        william.cole@minoangroup.com

 WH Ireland Limited               020 7220 1666
 Adrian Hadden/Megan Liddell

 Sapience Communications Limited  020 3195 3240
 Richard Morgan Evans

 

 

 

 

 

 

 

 

 

 

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