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Elliniko: The casino tender opens the way for construction

Featured Elliniko: The casino tender opens the way for construction

The big step for the casino license within the Elliniko Integrated Tourist Group that will include, apart from the hotel facilities and the biggest congress center of the country, is the deadline of April 22 when the offers must be submitted.

Now that everything is flowing smoothly for the competitive process and there is stability, with no twists and turns, sources close to the investment scheme under Lamda Development estimate that the bulldozers for the big investment promoted in the Attica Riviera can begin their work even as soon as the coming autumn. The same sources point out that the interest that has been expressed so far is satisfactory and the possibility of receiving more than one offers from investment schemes along with of one of the big names in the casino market is visible. It is reminded here that the names heard from time to time are Ceasars Entertainment, Mohegan Gaming & Entertainment, Hard Rock International on the other side of the Atlantic, the Malé Genting Group and the French Groupe Barrière with the first two groups being more active, as is the Malaysian Genting group, while it is very likely that foreign investment funds will be involved.

As regards in particular to the terms of the competition setting the standards for the financial fitness of the candidates, the casino owners in Elleniko must have an average equity capital of at least EUR 200 million over the last three years and an annual income of at least EUR 400 million the same period. If the applicants are investment firms, they must have funds in excess of EUR 400 million managed in the last three financial years and should be able to finance, either with own or loan funds, the payment of the initial price and the development of the project’s first phase of development, by 100%.

Commenting on these terms, experts who follow the process have reported that, although the numbers appear demanding at first glance, they also ensure the participation of larger “players” on the market and “shield” the investment.

In terms of the size of the latter, the international experience for this kind of projects (the Integrated Resort Casino) refers to numbers that can reach even 1 billion Euros, while for Greece, some estimates suggest that the most luxurious hotel facilities with the casino and conference center may require funds of around € 700 million.