"Golden Rain" over Porto Heli

Is it possible to sell a seaside tavern in the Peloponnese for 20 million? Is it possible to sell a forest estate for 50 million, in which it is impossible to build more than 200-350 square meters? m? Can a 3,782-acre forest that burned down in 2016 sell for $100 million? It turns out that in Greece it’s easy.

This is exactly what is happening now in Porto Heli, causing some fears of change and overexploitation of the site, while others expect development. Who is selling, who is buying, and why is of particular interest. But let’s get it right from the start.

Older people remember how in the 1970s and 1980s there were announcements on the radio about the sale of land in Porto Heli. “Plots with running water in Porto Heli, a few hours’ drive from Omonia,” said the announcer, advertising the then unspoilt seaside area that was already being developed.

The unsurpassed beauty of nature, greenery, indented coastline, good climate and proximity to the capital turned these plots of land into sought-after real estate in subsequent years. At the same time, the character of the area was preserved. A significant part of the territory is still covered with forest. And away from the beaten track. That is, they cannot build real estate larger than 350 square meters. m or so. And yet, some of these plots are sold for many millions. Why? Because ambitious investment projects have been hatched over a vast area, hoping to use the provisions of the legislation on strategic investments, tourism development and integrated hotel complexes to turn the territory into a tourist destination.

Permanent residents of the area, as well as owners of holiday homes, are skeptical. They are concerned about the changing nature of the terrain and talk about development patterns like those that have transformed Mykonos and other islands from top tourist destinations to hospitality and entertainment industries. There are, of course, those who believe that the planned investment will benefit their jobs and income. “Why only the Mykonians, and not us,” this party objects.

What happens in Porto Heli?
Earlier this year, it was reported that billionaire Irish businessman Paul Richard Coulson (a major shareholder in the steel and glass Ardagh Group), who is said to have liked the area, bought a house first and bought two hotels. These are AKS Hinitsa Bay and AKS Porto Heli, one of which is located on the first coastline in Porto Heli, and the other is on Hinitsa beach. The price is said to be around 50 million. Prior to this deal, Coulson also purchased the so-called “Ktima Alexiou”, an area of ​​about 300 acres, for 50 million.
In addition, he acquired land between the estate and Khinitsa, where one hotel is located. A significant part of Alexiou’s estate, according to the published forest maps, is a wooded area, and, being off-plan, he can only build the planned 200-350 meters. However, reliable sources say that “he received proposals to merge this site with AKS Hinitsa Bay so that he could take advantage of the provisions of the law allowing the construction of holiday homes even on such unplanned forest sites if they are part of an integrated tourist complex.” The same and other sources even report that the businessman admitted to his interlocutors that he intends to build residences together with Four Seasons. An attempt to contact the businessman to confirm this information was unsuccessful.

Offer to the owner of the tavern in 20 million.
The above information supplements the information that back in the summer he offered the owner of the world-famous “Grandmother’s Tavern” (“Ταβέρνας της Γιαγιάς”), located on the Khinitsa beach near the bay, the amount of 20 million dollars. The owner reportedly turned down this tempting offer. Attempts to contact the owner of the property were also unsuccessful, however the store manager confirmed that to his knowledge it had not been sold.

Hellenic Real Estate Fund Tender
In the meantime, all this is happening in Khinitsa, in the north-west of the country, the Greek State Property Fund announced a tender for the sale of a 62.4-hectare site in the town of Ververonta.

However, here, too, construction opportunities are limited, since most of the territory is forest land, and any large projects can only be carried out on the basis of the “Special Spatial Development Plan of State Property”. That is to be planned according to the Decree of the President. But this is not the only major property for sale in the area. The Naval Permanent Officers Building Cooperative – OSMAN is attempting to develop a 3,782-acre woodland lot given to it by the government in 1970, much of which burned down in 2016, so it is forbidden to sell, much less build, there. The asking price is around $100 million.

The sums at stake hint at the expectation of large projects under the “roof of strategic investments.” What expectations will be justified by the state, and what will not, is not yet clear.

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