Greece to conclude major property deal in June: privatisation chief (updated)

Thessaloniki Water Supply and Sewarage SA

26/05/2016 11:51

* Political, technical hurdles for 915 mln euro project 
    * Greece to raise more than 2 bln euros in 2016, chief says 
    * Says Greece to sell water utilities but retain majority 
    * Recent debt deal to improve investor sentiment 
 
 (Adds quotes, background) 
    By Angeliki Koutantou 
    ATHENS, May 26 (Reuters) - Greece will conclude the sale of 
a prime seaside property at the old Athens airport of Hellenikon 
in June, boosting proceeds from state sales this year to more 
than 2 billion euros ($2.2 billion), the privatisation agency 
chief said on Thursday. 
    Privatisation has been a key condition of Greece's 
international bailouts since 2010, but political resistance and 
bureaucratic snags mean few have gone ahead so far. 
    After six months of talks, Greece reached a deal with its 
foreign creditors on Wednesday unlocking desperately needed 
bailout loans on conditions including speeding up 
privatisations.  urn:newsml:reuters.com:*:nL5N18M2G5 
    "I believe that we will be ready within June," Stergios 
Pitsiorlas told Skai television, after the agency concludes 
talks with investors to amend some terms of the sale.  
    Greece clinched the 915 million euro ($1 billion) deal for 
the sale and long-term lease of Hellenikon property to a 
consortium led by Lamda Development  LMDr.AT , with Chinese and 
Abu Dhabi-based firms, in 2014. 
    Opposition from local communities and technical hurdles have 
delayed the project. 
    "There must be a final agreement which will convince the 
people," Pisiorlas said.  
    Athens can raise more than 2 billion euros from divesting 
state assets this year, he added, and can approach a 6 billion 
euro target by 2018.  
    Under an updated privatisation plan published on the 
government's official journal on Wednesday, Greece plans to sell 
a 5 percent stake in its dominant telecoms operator OTE 
 OTEr.AT .  urn:newsml:reuters.com:*:nL5N18M64J 
    It will also sell minority stakes in its water utilities in 
Athens  EYDr.AT  and Thessaloniki  TWSr.AT , Pitsiorlas said.  
    "On water utilities, let's make it clear: the majority stake 
will remain under state control," he said.   
    Despite strong opposition, Greek parliament approved on 
Sunday the creation of a privatisation umbrella fund which will 
operate from 2016 for 99 years. The issue prompted the 
resignation of a lawmaker from the ruling leftist SYRIZA party.  
    Pitsiorlas defended the new entity, saying it would have 
more flexibility on developing state property, which he said can 
help Greece return to growth. The debt deal clinched this week 
will also improve investor sentiment. 
   "It's up to us from now on, it's in the Greek government's 
and Greek people's hands... to speed up and enter a growth era." 
 ($1 = 0.8939 euros) 
 
 (Reporting by Angeliki Koutantou, Editing by Renee 
Maltezou/Ruth Pitchford) 
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436; 
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net)) 
 
Keywords: EUROZONE GREECE/PRIVATISATIONS