Greece completes privatisation of 14 regional airports in €1.2bn deal

Greece has completed the €1.2bn sale of 14 regional airports to Germany's Fraport as part of its international financial bailout, the country's privatisation agency said.

The deal to sell the airports was reached at the end of 2015. The properties include the tourist islands of Rhodes, Mykonos, Santorini and Corfu.

Fraport will run the concessions for 40 years, which it described as a "mammoth investment for the country’s infrastructure and economically vital tourism sector".

Along with the upfront payment, the Greek government will receive an annual €22.9m fixed fee as well as a variable annual fee based on 28.5% percent of Fraport Greece’s yearly operational profit.

Under the concession agreement, Fraport Greece will be investing about €400m for improving and expanding the airports’ infrastructure over the next four years, the company said.

It recently signed an agreement with the Greece-based Intrakat construction and engineering company to refurbish, expand and build new facilities at the airports – including five new passenger terminals. In subsequent years, Fraport Greece will make investments for maintenance and demand-driven capacity expansions, it added.

About €1bn in long-term financing for the airports project is being provided by a consortium of leading financial institutions. Some €280.4m of the total loan will be used to finance construction projects at the 14 airports, while €688m will be used as part of the upfront concession payment to the government. Greece will retain ownership of the airports, Fraport said.