Cypriot heads EUR 2 bln Greek island investment

A Cyprus-based development company, Kerlengou Island Investments Plan Ltd, has bought the 12-square-kilometre island of Dhokos, in the Saronic sea off Hydra, and plans to develop a mega-project worth EUR 2 bln.

This is reportedly one of the last of more than 60 private Greek islands on sale across Greece in recent years,

The nearly-deserted island previously owned by shipping magnate Petros Livanos, just as tycoon Aristotle Onassis had acquired Skorpios as his private retreat, was auctioned for EUR 180 mln and has already attracted interest from investors in Greece, Cyprus and the Middle East.

It is less than two hours’ away by ferry from Pireaus and ten minutes from Hydra.

Costas Kerlengos, who runs a group of security, retail, transport and telecom companies, plans to develop tourist hotels and villages and individual properties taking advantage of recent relaxations in the Greek laws on island developments.

Dhokos only has a handful of inhabited homes, while its main bay is a natural shelter that has become a popular anchorage for many yachtsmen sailing the Aegean.

A stretch of 5 sq.m. will remain undeveloped due to archaeological sites on the island, while the whole development foresees the sale of 12,000 plots starting from EUR 75,000 (CYP 44,000) per property.

Kerlengos said that he has lined up a Greek architectural firm to help with the development and work should begin on the island by early-2008.

Due to the expansion of his business to Greece and realising the potential of the Aegean tourism market, Kerlengos also plans to charter a 750-passnger cruise ship next year to operate in the Greek islands.

More than 60 private Greek islands are reportedly on sale across the country, drawing the interest of domestic and foreign investors as well as international tourism groups.

The owners of those small islands have realized the assets they have in hand and are rushing to make the most of them.

The 4 sq.km Skyropoula island, right next to Skyros, was said to have been recently bought for nearly 6 mln euros by one or more members of the Haji-Ioannou family of shipowners.

Another island proceeding with tourism investment plans is Alatas in the Pagasitikos Gulf, close to Volos in central Greece and covering a surface of 0.5 square kilometers. Greek press sources say the islet has been leased for the next 50 years by United Five Development from Cyprus, which is expected to invest more than 50 mln euros in building a major hotel unit of 900 beds with restaurants, recreation spaces, tennis courts and swimming pools.