Greek privatisation fund completes first public land deal

(ATHENS) - Greece's privatisation fund said Thursday it had completed its first public land international deal in 15 years, by accepting an offer over a plot on the western island of Corfu.

"The board of the Hellenic Republic Asset Development Fund has accepted the binding offer of NCH Capital" the organisation said in a statement.

According to the statement, the fund will receive 23 million euros ($31 million) by the New York-based investing group in return for the 99-year "right of surface" over the seaside land plot Kassiopi.

Investors will be able to exploit about 36.000 square metres (eight acres) out of the overall 490.000 square metres (121 acres), while the state will retain ownership of the plot.

Privatisations are a key component of reforms that Greece is expected to carry out, in return for vital EU-IMF loans that have been keeping its economy afloat.

The country's privatisation programme has been greatly delayed while, earlier this month, an attempt to privatise the Hellenic Postbank flopped without any interest in bidding.