Strong investor interest in former military camp in Athens
Today is the last day for the submission of bids for the 50-year lease of the PLESSA MICHAIL camp on Mesogeion Avenue, Athens. The tender is held by the Greek Armed Forces Real Estate Service and reportedly there has been a strong interest by developers and RE companies.
The property is a total surface of 18.6 sq km with 22 buildings and can be used for the construction of office complexes, hotels and even residential buildings.
Investors are concerned though for time building permits' take to be issued as well as for the relocation time for the services currently housed in the former camp. The letter of guarantee (€1.6 m) is also considered as high.
The former camp is owned by the National Defense Fund, and has a total area of 18,643 square meters. The total area of the 22 buildings reaches 7,582 sq.m.
The tenant will be given permission to demolish existing buildings and build a new complex with the approval of the Fund. The Fund will set the timetable, the supervising engineer and the Supervisory Monitoring Committee.
The starting price of the electronic bidding is of Ε 1.6 m per year and the five-year lease adjustment rate equal to 100% of the change in the Consumer Price Index on the monthly lease formed.
The revaluation may not be less than 5% of the rent for each five-year period. The term of the lease is 50 years from the date of signing the lease, with the right to extend it for another ten years.
The Declaration states that "due to the substantial costs required by the lessee to rebuild, reconstruct and relocate units and services and the cost of investment and licensing they do not have to pay the rent for the first year of the lease, and for the next four years they can pay 50%”.
The Armed Forces Real Estate Service is preparing to launch another major tender for the lease of a neoclassical building on Akadimias 31 str, downtown Athens.
Original Source: Euro2day
Adaptation/Translation: Kiki Athanasiadis