Wrath for the scandal of Hellinikon

Rich background for the process of selling the area of the former East airport in Hellinikon along with "suspicious" coincidences, come every day in the limelight.
While the people groaning under brutal memoranda and unpopular measures, big businessmen of the country receive the provocative propitious treatment of the Greek state.

During the recent days, growing questions are arising about the privatization process of the best land property of Mediterranean seaside.

The contest for the privatization in Hellinikon is a milestone for the Greek state, but the risky manipulations are about to turn it to the one of the biggest scandals of the state.

The Lamda Development (of Latsis interests), with the support of Global Investment Group, composed of the company AlMaabar from Abu Dhabi, the Chinese group Fosun Group, as well as from European funds, was the sole candidate in a contest that everyone expected to attract the interest of many and large investors.
Herein, lay the first questions: How can one of the biggest seaside properties of Europe with an area twice that of Hyde Park London may not succeed to attract investors?

Why the state rushes to celebrate that has finally found an investor, when the specific investor wants it "almost for free"?

The suspicious documents into the light

Just 72 hours before filing a new improved proposal by Lamda Development of the Latsis Group (as the first one of 430 million was deemed inadequate), the "Real News" newspaper revealed the underground routes and the controversies among the bodies about the impairment of Hellinikon and the "stretch" of laws to facilitate private investors concerned.

According to a document that reveals the Real News, the valuation which was made a year ago estimates that "the minimum fair value of the company GREEK AE on the property amounts to 1,239 billion Euros". The document was signed by the company's managing director GREEK AE, Professor Spyros Pollalis.
As stated in the document, during the discussion that took place at the offices of HRADF, proposed "as alternative methodologies of HRADF and the chartered surveyor from New York, not to take into account the law 4062/2012 which might not be applicable to the whole elements but lead to a reduction in fair value".
Noted that 'the HRADF also stated that the final assessment for the purposes of the competition will be deferred, based on the construction which will be proposed by each investor.

This is how the price was dropped

The letter, postmarked March 8, 2013, gave rise to sweeping changes in the administration of GREEK AE and two days later the president and CEO S. Pollalis resigned.

The new appraisers hired by the HRADF allegedly compute the value of the property in Hellinikon, in 700 million. That is, 500 million less than the original estimate, but much more than the 430 million which gives Latsis Group.

Also, during the last year, bizarre interventions occurred in the process of privatization. From April 2012, when the contest opened, appeared nine investors but who in fact never received a real investment folder, but a summary and a record of intentions. Also, they did not know the exact area of the property neither the judicial pending.

In the next phase of the competition, after the almost withdrawal of the investors, it took one and a half year and four extensions to submit the final proposals. At the same time, were constantly arising legislative and judicial arrangements that sent the investors further away.

The main change made in the concession allows the preferred investor, i.e. the Lamda Development of Latsis, to choose between a single repayment and prepayment of 25%, with the remaining 75 % payable in 10 annual installments.

Unanswered questions

However, it is not the first time that a privatization has a "scent" of a scandal. Most privatizations which have made or attempted to be done until now, have been presaged by the respective governments by pompous statements and fiestas and the result is ultimately zero. The same had been attempted previously in Greek DEPA, where no one showed up, despite the celebratory announcements of the Fund at the initial stage of the competition on the huge international interest...
If the very small offer of Lamda is verified, then talk about a sell of an area of 6,200 acres, to 96 euros per square...

Indeed, this figure constitutes an even greater challenge when you consider that the Astir in Vouliagmeni, the 1/8 of the land property in Hellinikon was sold for 400 million.

Also the contest for the Hellinikon, according to market executives, creates a series of serious questions which both the government and the administration of HRADF must reply.

Such as:

- Why should the property land be sold as a whole and not in "pieces"; why can not the 6,200 acres of Hellinikon be divided and sold on to many investors, increasing in this way the revenue that will flow to the Greek state?
- Why the concession of project is for 99 years and not for less?
- Do the contract terms of the exploitation of Hellinikon protect the public interest?
If the Greek state legalizes this scandal, then would be a rogue state which cheats society and offers immunity to big business.
If this scandal proceeds, it will be a huge moral outrage and mockery of Greek society.