Greece accepts $31 million bid for island plot

Last Updated: Thu, Jan 31, 2013 19:18 hrs

Greece's state privatization fund says it has accepted a €23 million ($31 million) bid from New York-based investors to develop real estate on the western resort island of Corfu.

It is the first successful deal involving a large plot of state-owned real estate, which accounts for about 50 percent of Greece's ambitious privatization program.

A fund statement Thursday said NCH Capital will be granted a 99-year concession to exploit the seaside plot at Kassiopi. The state will retain ownership of the 120-acre (nearly 50-hectare) forested property, selling what it calls the "right of surface."

The fund said the total investment at Kassiopi is expected to reach €75 million ($101 million), and will create hundreds of construction jobs.

Greece's privatization program is part of its commitments to international bailout creditors.

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