The Hellenic Republic Asset Development Fund Launches Invitation for Expression of Interest for the Privatisation of Hellinikon S.A.

ATHENS, Greece, December 8, 2011 -

Hellinikon S.A. is expected to hold all the rights to develop the site of the former international airport of Athens, Hellinikon

The Hellenic Republic Asset Development Fund, the recently established entity responsible for managing Greece’s privatisation programme, announces an Invitation for the Expression of Interest for the acquisition of a majority shareholding in Hellinikon S.A., the entity which will hold the rights to manage and develop the site of the land plot of the former international airport of Athens, Hellinikon.

Located within the greater Athens metropolitan area, the site is close to the heart of Athens, with direct access to the Aegean islands, and a short flight from most major European and Middle East destinations. As the majority shareholder, the Preferred Investor will be responsible for ensuring that Hellinikon S.A. carries out the development of an area of more than 6.2 million square metres of land and real estate assets.

The relevant site is more than three times the size of Monaco, more than twice the size of Hyde Park in London and Central Park in New York.  Its development will constitute one of the largest urban regeneration and land development projects in Europe.

On completion of the transaction, and in line with a business plan that will have been submitted by the Preferred Investor, Hellinikon S.A. intends to redevelop the site into a mixed-use landmark location of national significance. It is intended that the redevelopment will enhance the attractiveness of the Athens area as a tourist destination and as a business and leisure centre, whilst remaining integrated with the greater area of Athens.

Commenting on today’s announcement, Costas Mitropoulos, CEO of the Hellenic Republic Asset Development Fund, said: “We are delighted to be launching the long awaited Process for such an attractive and strategically important asset. This is a rare opportunity for the successful investor to develop a world class destination benefiting Athens, Greece and the Eastern Mediterranean.

“We expect significant investor interest in this process, for a total investment which will stimulate growth in the Greek economy.”

The Process

The process is aimed to attract strategic investors, with a vision for the transformation of this prime piece of real estate into a world class urban development project. In this first phase of the process, interested parties will be requested to express their interest and demonstrate they fulfil the criteria outlined in the Invitation for the Expression of Interest, for qualifying for the second phase. Expressions of Interest are required to be submitted by no later than 17.00 Greece time on 30 March 2012. Prequalified investors will then be invited to participate in the more detailed second phase of the Sale Process, at the end of which they will be requested to submit binding financial offers, together with funding commitments, an underlying business plan and a bid bond. Interested Investors may participate alone or by way of a consortium or joint venture.

It is expected that the Preferred Investor will be announced by the end of 2012.

Citigroup Global Markets Ltd. and Piraeus Bank S.A. are acting as financial advisors to the Hellenic Republic Asset Development Fund on this Process.

More details on the Tender Process can be found in the “Invitation to submit an Expression of Interest”, available from 8 December on the following website: www.hradf.com.

The Hellenic Republic Asset Development Fund S.A. recently confirmed that total revenues from privatisations in 2011 have exceeded €1.8 billion, of which €1.5 billion will be collected this year. Six new privatisation processes are expected to be announced between now and the end of January 2012.

For further information and updates please refer to the Hellenic Republic Asset Development Fund’s website www.hradf.com or send an email to hellinikon@hraf.gr

Contacts:

M:Communications
Louise Tingström
tingstrom@mcomgroup.com
+44-20-7920-23-37

Charlotte McMullen
mcmullen@mcomgroup.com  
+44-207-920-2349

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