Athens, 9th October 2012. After four years of anticipation, the Greek State has completed its first privatization deal with key assistance provided by Colliers International’s independent valuation services.
Ana Vukovic, Managing Director of Colliers International says: “Colliers is proud to have taken part in the first closed privatisation deal in the Greek market, acting as a trusted partner of the State. The IBC deal is the first positive news since the beginning of the economic crisis and it is Colliers' privilege to have contributed our services to making this important development possible.”
Based on Colliers’ value estimation study, the Hellenic Republic Asset Development Fund completed the first privatization deal on behalf of the State by according the Right of Usufruct for the exploitation the International Broadcasting Centre (IBC) in Athens for a period of 90 years to Lamda Development, the most competitive bidder in the tendering process.
The deal ensures the completion of the north-eastern segment of the 14,000m2 IBC building, which will accommodate the Museum of Olympic Games, with a minimum area of 3,000m², a state-of-the-art auditorium and theatre of approximately 1,500m2, as well as facilities such as a playground, kindergarten and gym, while the remaining space will host commercial establishments, such as cafes, restaurants, retail stores and offices. The standards, size, and design of this project make the building a multi-component destination with a high variety of uses and a degree of prestige consistent with the image of the Olympic Complex.
This is a new chapter for the Athens team, as Colliers’ name is now associated with the first privatisation deal completed under Greece’s program of fiscal consolidation and structural reform. By playing a key and independent role in the privatization process, Colliers sets itself apart as a key player with indispensable know-how and expertise on legal procedures, market frameworks, trends, and prevailing conditions.
This first privatisation is expected to be the only first positive development of many more to come. The outlook calls for this initial deal to speed up privatisation projects and plans by promoting a business friendly framework, which is set to upgrade Greece’s international standing and strengthen its potential for economic recovery and growth.
The privatisation deal is already proving to be a vote of confidence for the Greek economy and successful examples such as the IBC building will only bolster positive assessments. Greece has plenty of space for reforms to generate growth and increase the country’s attractiveness and competitiveness. Privatisation will continue to be a crucial component of strategic policies for economic development.