An Arab fund including investors from the UAE, Kuwait and Saudi Arabia has reportedly bought a luxury sea-side resort on Greek island Corfu for €400m ($550m).
The Greek government’s privatisation vehicle, Hellenic Republic Asset Development Fund, announced last week that the Jermyn Street Real Estate Fund was the preferred bidder to take a majority stake in Astir Palace Vouliagmeni.
The Jermyn Street Real Estate fund is managed by London-based AGC, representing investors including from Turkey’s Dogus Group, Abu Dhabi, Dubai, Kuwait and Saudi Arabia.
The sale had been subject to approval from the Court of Auditors and a presidential decree supporting the planned development at the site on one of Greece’s most popular tourist islands.
According to reports, the investors intend to upgrade the resort’s two hotels, Arion Hotel and Westin Hotel, to six stars and construct 20 luxuryresidences for the world’s most wealthy.
Opponents to the development claim it will endanger the surrounding environment, local media has reported.
The is part of the Greek government’s plan to sell off assets to pay down its enormous debt.
Tourism is the first industry to have recovered since Greece's recession, with the country expecting a record number of visitors and tourist revenues this year.