Greece's privatizations fund HRADF is targetting revenues of 2.4 billion euros next year on the condition that four state asset sales currently in the pipeworks are completed.
As announced by chairman Aris Xenofos on Thursday, the target can be met by selling 20 percent of the Athens International Airport (AIA), a stake in Hellenic Petroleum (ELPE) and 100 percent of gas company DEPA's commercial and infrastructure operations.
Experience shows, however, that HRADF rarely meets revenue forecasts as the course of privatizations is affected by politics, as seen in 2019 - a year in which the asset sales program was mostly frozen due to elections. These are also special assets, adds Xenofos.
The deadline for the expression of interest in DEPA Ιnfrastructure has been set for February 14, while the sale of DEPA Commercial, will be launched in the first quarter of the year. In the case of both DEPA companies, there has been strong investor interest from Greece and abroad.
On the other hand, the fund is looking for an opportunity to sell its ELPE stake, currently at 35 percent. This time round, however, the sale will not include a stake in ELPE held by the Latsis group, as was the case in the previous privatization attempt that failed earlier this year.
"It is a difficult transaction", said Xenofos. "We are continually assessing the market situation and the mood of the investment community." The chairman stopped short of talking about the possible launching of the book-building process on ELPE saying that it is a listed company and that "we need to be careful."
HRADF chief executive Riccardos Lambiris said that the ten investors that submitted initial bids for the sale of AIA are likely to go through to the next round in mid-January, while binding offers are expected close near Easter. Regarding the development of the Hellinikon complex, Xenofos stuck to the government forecast that construction on the site will start in January. Among the outstanding issues on the project is the casino license that needs to be awarded and the splitting up of the land between the investors and the government. Based on the contract agreement, Lamda Development will acquire the rights to about 30 percent of the land on Hellinikon and the beach stretch. Talks are being held now on exactly which parts will be taken over by the investor.
In regards to the ten regional ports Greece has put on the sales list, legislative changes are being prepared that will allow the assets to be developed based on different models, rather than just passing off parts of the port to investors, as planned by the previous government. The first tender for a port sale may be launched by the end of the first quarter, added Xenofos.
On the Egnatios Odos privatization, HRADF official said that this is facing large problems, without further elaborating. In regards to real estate, the Castello Bibelli property in Corfu is in the final stages of being taken on by investors that include Bluehouse capital, while the sales process of the Gournes property in Heraklion, Crete, is expected to start soon. This asset will include a casino permit, adding value to the deal, according to Xenofos.
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