BROWN HOTELS and ANVIL to claim a 5-star hotel posibility in Omonia
BROWN HOTELS and ANVIL to claim a 5-star hotel posibility in Omonia

BROWN HOTELS and ANVIL to claim a 5-star hotel posibility in Omonia

In a building owned by the National and Kapodistrian University of Athens
RE+D magazine
21.12.2020

The tender for the long-term lease (50 years) of the property on the streets, 11 Patision, owned by the National and Kapodistrian University of Athens, proceeded to the second phase.

The University aims at the property's reconstruction, which curently includes a basement, a ground floor, a mezzanine and the first floor, with a total area of 2,180.44 and the posibility of additional floors.

In the first phase of the process, the interested investors were invited to submit substantiated proposals for the exploitation of the said property. Two proposals were submitted. One was from BROWN HOTELS and the other from ANVIL MANAGEMENT GROUP.

According to a relevant analysis of the proposals of the 2 companies, recorded in the minutes of the A' phase of the tender, the proposal of the company ANVIL MANAGEMENT GROUP IKE is considered preferable to the proposal of the company BROWN HOTELS, as its proposal yields, by a small difference, greater present value of property, curently and throughout the lease term of 50 years.

During the implementation of the second phase, the potential investors are invited to bid, with a minimum monthly rent of 17,500 euros.

The first 3 years, which is the reconstruction / restoration period of the property, is considered as a grace period, during which the investor will pays the minimum possible monthly rent, which will cover the fixed liabilities of the Owner to the State.

As for the type of utilization, it is allowed to create commercial stores on the ground floor and a hotel on the rest of the floors, also allowing the use of the remaining construction capacity.

The new building can be the product of either demolition of the existing one and the construction of a new one or of the reconstruction of the existing building.

The maximum amount required to be invested by the company is 6,134,173 euros, while the investment must be implemented within 3 years from the conclusion of the long-term lease agreement.