The agreement, which encompasses the Ktima Kampa estate in Pallini and the property in Gournes, Heraklion, provides for a total future investment expected to approach €700 million. This figure includes both the acquisition and the development of the properties.
The agreed value of the properties amounts to €85.6 million, of which €4.3 million was paid in advance upon the signing of the contracts. The final consideration will be determined on the share transfer date, taking into account the financial position of the involved companies based on the adjusted net asset method.
Details of the Properties Included in the Agreement
The transaction involves the following:
Acquisition of 100% of the shares of the companies Kantza Emporiki S.A. and Kantza S.A. for Property Development, Management, and Exploitation, which own land totaling 319,000 sq.m. at Ktima Kampa, within the municipalities of Paiania and Pallini. The development plan for the area foresees the construction of 90,000 sq.m. of mixed-use buildings, including 3,600 sq.m. of preserved historic structures. The properties in the Kantza area are designated as part of an Organized Development Area for Productive Activities (POAPD), with prospects for utilization through the development of mixed-use infrastructure. In March 2021, the Council of State approved the presidential decree related to the urban planning scheme, thereby allowing the issuance of building permits in the area.
Purchase of two additional plots of land in the Trigono Kampa location, with a total area of approximately 5.7 stremmas. One of the plots includes a preserved building of 700 sq.m. and has a permitted building capacity of 1,800 sq.m. for residential use.
Acquisition of 100% of the shares of Gournes Property Development and Management S.A., which owns a plot of 346,000 sq.m. in Gournes, Heraklion, Crete. REDS S.A. emerged as the winning bidder for this former U.S. base site through the e-auction process conducted by the Hellenic Republic Asset Development Fund (HRADF), offering €40.2 million. Dimand also participated in the bidding process.
According to the approved Special Spatial Development Plan for Public Property (ESCHADA), approximately 60,000 sq.m. of development is foreseen on the site. Proposed uses include hotels, a marina, retail outlets, office spaces, banks, exhibition areas, and the potential operation of a casino.
The operation of a casino is subject to licensing by the Hellenic Gaming Commission (EEEP), followed by a formal tender process.
The completion of the transaction is subject to customary terms and conditions, including the fulfillment of specific actions related to the properties and the involved entities. Both parties estimate that the process will be finalized by July 31, 2025, with the possibility of an extension if mutually agreed upon in writing.
