e-EFKA seeks hotel operator for 4 Kasimati Street in Piraeus

The tender notice was approved by the Board of Directors of e-EFKA on September 17 and provides for the selection of an investor who will undertake, at its own expense, the redevelopment and conversion of the property into a hotel. The tender will be conducted through sealed bids, with the lease awarded to the bidder offering the highest rent, provided that all participation requirements are met.

The property has a total surface area of 1,570.56 sq. m. and comprises a basement, ground floor, mezzanine, seven standard floors, one recessed floor and a rooftop. The use stipulated in the tender notice is a hotel establishment rated at a minimum of three stars.

Minimum €3 Million Investment

The tender’s financial requirements extend beyond the rental payment. The successful bidder will be required to implement a construction and renovation investment programme of at least €3 million plus VAT, which will not be offset against the rent.

The tender notice further stipulates that if the works cost less than €3 million and the tenant demonstrates that the full amount was not required, the difference will not remain with the investor. Instead, it will be paid to e-EFKA as additional rent in 12 monthly instalments during the first year following completion of the works. Conversely, if the investment exceeds €3 million, the tenant will not be entitled to compensation or a rent reduction.

The lease term is set at 30 years, with the possibility of a further 10-year extension by mutual agreement. Any agreement on the extension must be concluded at least two years before the expiry of the initial lease term.

The starting bid has been set at €12,000 per month, or €144,000 annually, before indexation and the 3.6% Digital Transaction Fee.

However, to allow sufficient time for the investment to be implemented, e-EFKA is granting a two-year rent-free period, during which no rent will be payable. From the beginning of the third year, the tenant will pay the full indexed rent, regardless of whether the investment programme has been completed.

Following the two-year grace period, the rent will be adjusted annually based on the Consumer Price Index plus one percentage point. The minimum annual increase may not fall below 1%, even in the event of negative inflation.

Based solely on the minimum starting rent and excluding future increases, the 30-year lease theoretically corresponds to approximately €4.03 million in total rent, after excluding the two-year grace period. The actual amount will be higher due to the bidding process and annual rent adjustments.

Guarantees

Interested parties will be required to submit a €12,000 bid bond. Upon signing the lease agreement, the successful bidder will be required to provide a performance guarantee equivalent to 12 months’ rent – at least €144,000 based on the starting rent – as well as a €150,000 investment guarantee for the implementation of the investment programme, corresponding to 5% of the minimum investment.

In addition, bidders must demonstrate financial capacity of at least €1.8 million. Individuals and legal entities from Greece or abroad, as well as associations and joint ventures, are eligible to participate.

Outstanding Issue with Existing Tenant

The tender notice includes a factor that could affect the timing of the property’s handover. The ground floor remains subject to a lease that is currently under a use compensation arrangement. e-EFKA has notified the existing tenant of the tender; however, the lease agreement with the successful bidder will be signed only after the property has been handed over by the current tenant.

The organisation clarifies that, in the event of a delay in the handover, it will bear no liability and will not be required to compensate the investor selected through the tender.

Binding bids must be submitted by 10:00 a.m. on November 11, 2026, to e-EFKA’s General Registry at 22 Akadimias Street. The bids will be opened one hour later, at 11:00 a.m., at the offices of the Directorate for Real Estate Development at 19 Ippokratous Street.