The benefits for ELLAKTOR from the contract for ‘Mikro Elliniko’

By Eleni Botas

The ELLAKTOR Group is reaping significant benefits from the contract for the fillet of the former American base in Gournes, Heraklion, where the REDS subsidiary won the relevant HRDH tender yesterday.

With this contract, ELLAKTOR, which owns 55.4% of REDS, includes in its portfolio one of the largest projects to be constructed in the coming years in our country, with a significant contribution to the profits and turnover of the Group.

At the same time, the Group’s subsidiary, AKTOR, is expected to undertake the construction part of the project, which will amount to several million euros, strengthening the backlog and improving its basic lines.

The plan for Gournes that is being promoted envisages a series of developments, including 4 and 5 star hotels, hostels, conference-exhibition center, holiday homes, shopping malls, marina, helipad and other uses, while the casino planned to be built within the area.

The revenues from the project are expected to be large and for this reason, according to information, the management of ELLAKTOR wanted to take over the project, fighting until the last moment with Dimand in the electronic auction process.

Thus, after 15 years of stagnation and more, REDS comes to the fore again, with the goal as recently stated by the CEO of the company G. Konstantinidis “to become a leader in the field of development not only in Greece, but also in Southeast Europe in general.” .

“We will move quickly, efficiently so that we are not just market observers,” he said in a recent press conference.

The investment in Gournes, Heraklion, also known as “Mikro Elliniko”, is expected to attract significant domestic and international capital as well as a significant tourist flow, contributing substantially – in combination with the other major projects to be done on the island – to upgrade, promote and economic development of Crete.

After the ratification of the result of the electronic auction by the HRDH, it is the turn of the casino that as mentioned above will operate within the area and which is promoted with a separate procedure.

In particular, the license of the casino in Gournes will follow the model of Elliniko. This means that first the investor is selected who will utilize the area and then the casino license will be granted.

Those interested in the casino license in Gournes, Heraklion, will have to negotiate with both the State and the concessionaire of the area.

The works of REDS

In addition to the contract for Gournes, REDS’s portfolio includes the Smart Park shopping center in Spata as well as Cambas Park, the well-known property of 315 acres of the old Kampa winery in Kantza – Pallini, Attica.

For this project, as the company’s management recently pointed out, the pandemic has changed its original design and from a mixed complex (residential, office space, hotel) that was planned, its conversion into a purely residential complex is being considered.

In fact, there has been a proposal for the development of the area by American investors, which is being considered, without so far having anything better known about the “fillet” area in the Mediterranean.

The project of Villa Kaipa and the residential complex of 17 houses in Kantza is in progress, for which the company has issued the permits for the reconstruction of the listed building and the lease of the residential complex of 17 houses and is looking for a potential investor for the sale of the houses. in the next phase. Villa Kappa, based on a contract signed with the Municipality of Pallini, will be reconstructed and given to it after 25 years from the opening of “Cambas Park”.

Also in progress are the works for Marina Alimou, where Reds has undertaken its development and management for 40 years (with the possibility of expansion to 50 years).

The demolition, asphalt paving, electrical works and plumbing works inside the marina have already been completed, while parking spaces have been created. All the above works are part of the landscaping and the minimal improvements of the investment, while the main construction works are expected to last two years. Finally, Reds owns land for development in Romania.

At the level of results, Reds in the nine months of the current year showed a decrease in turnover, but at the level of the third quarter, the turnover showed an increase, while the EBITDA show a similar picture.

In particular, the turnover for the third quarter of the year increased by 6% and amounted to 2.044 million euros. At the 9-month level, the turnover reached 4.6 million euros, recording a decline of 6%. In terms of EBITDA for the third quarter amounted to 1.53 million euros, from 1.33 million euros in the third quarter of last year, while for the 9 months amounted to 2.79 million euros, reduced by 2 %.

The background of the online auction

The electronic auction process between the two candidates, REDS and Dimand for the contract in Gournes, reportedly lasted about 2.5 hours yesterday.

The online auction, which started after 11 in the morning, started with 22.5 million euros. The betting between the two sides was continuous with the result that the price within a short time reached close to 40 million euros.

The winner was decided in the last minutes when Dimand reached the price of 39.1 million euros and REDS to 40.2 million euros, with the former finally leaving. And there the process was completed, with the emergence of the highest bidder.