The next day for Lavrio: A Hub of Tourism Development and Urban Renewal
The investment by Piraeus Bank and Dimand in Lavrio for 420 luxury residences and 50 villas - called "a small Ellinikon" or just "Project Lavrio- and the wider transformation of the region, with real estate developments and the new port.
- 15/07/2024
A “small Ellinikon” is set to be created in Lavrio, in the southeast of Athens, in the coming years by Piraeus Bank and Dimand, as the bank and the publicly traded real estate development company recently entered into a strategic partnership for the redevelopment of a series of buildings in Attica. The specific redevelopment of Lavrio involves the creation of 420 luxury residences and 50 villas on approximately 100 acres of property owned by the company “Nimatourgheio Aigaion,” which no longer exists.
Dimand is set to acquire an equity stake in this project, and it is worth noting that apart from Piraeus Bank, which is currently the main shareholder of the company managing the property, both Intracom and GEK Terna are also involved, either directly or through their affiliated company Kekrops AE. Specifically, the company Euroterra, in which the main shareholders currently hold a 75% stake, includes Strix Holdings, an interest of Piraeus Bank, GEK Terna with a 10% stake, Kekrops with 10%, and Intracom with 5%. The total investment is estimated to be around 300 million euros.
Looking back at the historical trajectory of this specific area, in 1955, “Aigaion S.A.,” owned by the Karella family, built the large textile factory in Lavrio, employing around 1500 workers, and closed in February 1990.
This investment is part of the broader redevelopment of the Lavrio area in the coming years, while a competition is underway for the concession of the city’s port, in which eight investment schemes are participating. The port of Lavrio is set to be privatized, with plans for its connection to the suburban railway. The port also holds licenses for operating a marina and a heliport, among other facilities.
The history of Lavrio and the new Port
Lavrio is a coastal town in southeastern Attica, known for its rich history in mining and its picturesque harbor. It is a 15-minute drive from Sounion (the Athens-Sounion coastal avenue connects Athens with Sounion passing through coastal suburbs such as Faliro, Elliniko, Glyfada, Saronida, and Anavyssos) and about 35 minutes away from the Athens International Airport.
The history of the Lavrio port is closely linked to the mines of Attica, while in the early 1870s it was the only port in Greece capable of accommodating ships with a capacity exceeding 1,600 tons for the transportation of fuel and metallurgical products. In modern times, this port shows an increasing trend in cruise passengers and coastal shipping, while it is also significant in the number of pleasure boats choosing this port for mooring.
Lavrio has recently been experiencing a wide redevelopment, attracting investments, while the port’s upgrade is promoted by the Hellenic Republic Asset Development Fund (HRADF).
A new hotel in the former Refugee Center of Lavrio
In terms of tourism infrastructure development, a hotel unit is planned to be established in the former Refugee Center of the municipality in Lavrio, in collaboration with a private individual using the PPP model (Public Private Partnerships, known as PPPs, are long term contracts between private and public sector in Greece) and a contract for 49 years.
Additionally, the creation of an underground parking space at the port area is also planned, with the project set to be tendered during the summer for assignment to a contractor who will carry out the construction. There are also plans for the establishment of a conference center on the hill of the Lavrio port, capable of accommodating 2,500 delegates.
The development of coastal settlements on an area of 9,500 acres
Currently, eight urban planning studies are underway for the development of coastal settlements on an area of 9,500 acres, primarily in coastal areas as the boundaries of the municipality extend from Palea Fokea to the area of Porto Rafti. Studies have already been completed for 3,500 acres of the mentioned area, and soon studies will also be carried out for the remaining 6,000 acres. Additionally, there are plans to utilize old bunkers from World War II to convert them into short-term rental tourist accommodations to be utilized during the summer season.
Furthermore, the municipality has secured funding from the Recovery Fund as well as from the public investment program for two major urban renovations in the historic centers of Keratea and Lavrio, with a total budget of 8 million euros and 6.5 million euros, respectively, which are currently being implemented. It is noted that the Municipality of Lavreotiki presents significant development prospects in the coming years and is one of the largest municipalities in Greece, covering an area of 220,000 acres and inhabited by 25,000 people.
Lavrio as a key hub of tourism development
Soon, Lavrio is expected to become a key hub for tourism development, as a series of actions and investments are taking place in addition to the utilization of the port. It is noted that the Municipality of Lavreotiki has established a real estate company for property management called DANETAL S.A., founded in 2017, transferring approximately 10,000 acres to it. These lands have been part of the municipality’s property from 2003 to 2008 when they were transferred to the land registry. These properties include beaches – 80 beaches fall under the municipality – as well as public-private partnerships.
A crucial development for initiating a series of actions in the municipality is the issuance of the relevant Government Gazette on March 29, 2024, which defined land uses, paving the way for the implementation of significant infrastructure projects through the utilization of real estate. The municipality has also signed a programmatic agreement with the Technical Chamber of Greece and the Ministry of Environment for the development of a local urban planning scheme within the next two years.
In recent years, over 300 million euros from various financing sources have been spent on infrastructure projects with the aim of creating a suitable environment for the tourism development of the wider area.