Golf swings into play in Greece

Major golf resort, residential and leisure-integrated real estate projects getting underway in Greece

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"Now is the perfect time for business people to consider Greece as a golf investment location. The new legislation, the interest by the government, and the locations available today translate into unprecedented opportunities that will pay off handsomely."

After years of benign neglect, golf in Greece is beginning to attract major attention in the international investment community. Spurred on by the new investment law and a strong interest by the current Greek government, golf investment is showing signs of exceptional vigour and numerous projects are proceeding from the drawing board to the fairway.

For years, Greece's golf enthusiasts had a limited number of courses from which to choose: Glyfada in Athens, as well as one each on the islands of Corfu, Rhodes, and Crete. The success of two new courses, one at Porto Carras in Halkidiki and a second course on Crete demonstrated the strong interest of tourists to golf and showed the clear potential for more golf courses throughout Greece.

Petros Doukas, Deputy Minister of National Economy and Finance, has long championed golf as an investment opportunity in his role as President of the Hellenic Golf Federation. Today, 18 months into his term as Deputy Finance Minister, he is even more enthusiastic about the potential of golf and is actively promoting golf investment at the official level. Speaking to ELKE e-News, the Minister said. "I would like to invite foreign investors to look closely at Greece as a destination for an investment in golf courses and golf resorts. Greece offers a 12-month golf season, a great leisure mix including swimming, sailing, and snorkelling in the Aegean, and a treasure chest of cultural attractions."

Minister Doukas believes the government can do more to accommodate investors: "We are forming a new inter-ministerial committee to facilitate investment in golf since we believe it is one of the most promising areas for growth in Greece," he said. Plans call for specialists from the Ministry of Tourism, the Ministry of Development, the Ministry of National Economy, and ELKE to coordinate proposals and projects so that golf courses and related investments are fast-tracked.

Minister of Tourism Development Dimitris Avramopoulos is also keen to see more golf opportunities as part of Greece's tourism infrastructure. He recently stated during a visit to the Glyfada Golf Club, "Undeniably, golf tourism can become the main factor towards quality tourism in our country."

Central to golf tourism are residential communities and vacation accommodations. Currently, legislators are introducing new bills in Parliament that will facilitate the construction of integrated resorts that combine villas, apartments, and hotels with such offerings as golf, spas, conference centres, and other business and leisure activities.

Since the development of golf courses is intertwined with the development of larger resort complexes, an additional boost to the game's advance was provided when Prime Minister Costas Karamanlis announced his government would "do all that is needed to disentangle major investment projects from the maze of red tape and contradictory licencing legislation."

Efforts by a variety of sources to speed up major investments are showing results. Three major investment projects have cleared hurdles to proceed fast-forward. John Anastasopoulos, President of the Hellenic Centre for Investment (ELKE), said, “These are the first concrete results of the new ELKE strategy for 'unblocking' investment schemes and 'counter-incentives' that have created problems for investors in the past."

Ellie Abravanel, publisher and editor of Golf and Tourism in Greece magazine, recently reported that golf investment is reaching substantial levels: "As many as 11 planned resort complexes include one or more 18-hole golf courses in their building plans, totalling EUR 2 billion in budgeted outlays. Greek and foreign investors have been waiting for between 3-10 years for state clearance and the time has come for their arduous efforts to pay off."

Renee Pappas, Director of Public Relations at the Hellenic Golf Federation, believes that within five years Greece will boast an additional 10 major golf destinations—perhaps more. "We will see exciting courses at spectacular locations and I believe golf will become a central, year-round tourist attraction that will put Greece on the 'global golf map.'"

And Peter Michel Heilmann, Founder and Director of INVgolf, a global golf and leisure-integrated real estate business intelligence provider, conference organiser and investment vehicle, says that a number of leading Greek groups of companies and foreign investors have started to proceed with their investment plans for the development of holiday homes and integrated leisure resorts with golf courses on large plots of land. Heilmann, a Dutch entrepreneur based in Athens, says "a number of Greek and international property management and investment groups are seeking to turn Greece into Europe's 'number one' holiday and retirement home market."

The British concern Minoan Group PLC is planning one of the largest resort communities in Greece on the island of Crete. Cavo Sidero will be a luxury, EUR 750 million complex on 26 square kilometres that will operate 12 months a year. According to project director Geoffrey Brown, "Golf is an integral part of our plans and is central to our mix of sports and leisure activities. We have plans for two 18-hole golf courses, one of which will be a championship course, a 9-hole par-3 course, a driving range, a club teaching pro, and a top flight club house. "Of special note is that Minoan Group PLC has signed a management deal with PGA Golf Management, the commercial arm of the PGA that specialises in managing and marketing quality golf courses." The contract to design the golf courses has been awarded to European Golf Design Ltd. (EGD) of the UK, who will work closely with PGA Golf Management to ensure that the courses and amenities meet Minoan's strict environmental requirements. The residual land value of the site has recently been reassessed by AXIES SA, a member of the Lambert Smith Hampton Group, and re-valued at £80 million based, inter alia, on all relevant consents having been obtained. The signing of a Memorandum of Understanding with a major international operator of luxury five star hotels was recently announced.

Also on Crete, Belgian investors are planning a major integrated residential and leisure project that include two golf courses. The site at Matala, approximately 15 kilometres from Aghia Gallini in the South of Crete, will occupy at total of 250 hectares and will take advantage of Greece's generous investment incentives.

In the Peloponnese, Navarino Resorts in Messinia is being developed by Tourism Enterprises of Messinias SA (TEMES), an Athens-based company controlled by the Constantakopoulos family of ship owners. TEMES acquired land for the project from more than 1,200 owners during the past two decades. The EUR 300 million project will be built at the historic bay of Navarino on the South-West Peloponnese coast, scene of a 19th-Century naval battle that made it possible for Greece to win independence from Ottoman Turkey. After many years of patient planning, TEMES hopes to open the doors of these two luxury golf resorts in spring 2008. Troon Golf, the world's leading high-end golf development, marketing and management company, will manage both championship-standard courses. Robert Trent Jones II, Inc., the California-based golf course architects, will design the Navarino Bay course. By 2015, Navarino will be Greece's premier golf destination with seven courses with half-an-hour's drive of each other, according to Achilles Constantakopoulos, the Managing Director of TEMES. As part of the project's second phase, approximately 200 villas will be built at Navarino Bay and another 120 at Navarino Dines. Two 5-star hotels at each resort will be managed by brand-name international chains. Three more courses with similar accommodation are planned for a sea-side site at Rizomylo, 30 kilometres to the east -- a classic Greek landscape of rolling hills covered with olive and cypress trees.

The Kilada Golf and Spa Resort, not far from Porto Heli, is proceeding apace and includes plans for a large number of villas close to the sea and the fishing village of Kilada. Set among gently rolling hills, valleys, vineyards and family estates, the Kilada property in Argolis is especially accessible to Athenian residents since it is less than two and a half hours by car from the nation's capital. Right next to this resort, at a mere 35-minute helicopter distance from Athens, the ultra-upscale Kilada Hills Collection, a new project of 11 striking contemporary houses, is currently being developed. The villas are aimed at the top of the market, from 240 square metres of living space upwards, each including at least four bedrooms and bathrooms as well as home cinema, extensive terracing and an infinity pool.

In the Helias province, where an American group is proposing a hotel, conference centre and residential development, Faldo Design's London-based vice president of design, Guy Hockley, is working on a new course at the Olympia Resort in the Peloponnese. The Olympia Resort project site, with its amenities and close proximity to the historic site of ancient Olympia, offers a one-kilometre long white sand beach to the west, a canal to the east and the Alfios River to the south that physically links the site to ancient Olympia. Upon completion, the developers claim that the Olympia Resort will be the country's only true 5-Star resort and the first 18-hole Nick Faldo signature golf course in Greece (including the golf school). Europe remains an important focus for the firm's activity and Faldo Design is currently designing courses in Greece, Ireland, Russia, Cyprus and elsewhere.

Nisos Arkoudi SA: In the Ionian islands, there are plans for the development of the Arkoudi Resort on the privately-owned island of Arkoudi, north of Cephalonia, which was sold by a Greek shipping family to the island's new owners/investors. The investment will reportedly EUR 88 million.

Swiss Golf Invest AG: And Golf of Zante, on the western side of the isle of Zakynthos, is a 27-hole golf resort (the so-called "Gold of Zante Premium Golf Club") being planned by Swiss Golf Invest AG, a Sempach-Stadt, Switzerland development group.

ABP Plus International SA (G. Paraskevaides Group): In Soros, Volos, ABP Plus International SA, an Athens-based development company that is part of the G. Paraskevaides Group, is currently developing the Apollo Golf and Spa Resort, a EUR 250 million multi-component destination resort with a 150-room 5-star hotel, top-quality luxury villas, a conference centre, a golf course covering 1.2 million square kilometres, a thalassotherapy and health centre, a heliport, facilities for a regular sea-plan arrival facilities, and a marina with 150 slips. The area is famous for the 5,000-year-old Acropolis of the ancient city of Amfanas, while the entire project is expected to create 800 jobs. ABP Plus has a notarial pre-agreement with ATHEX-listed Heracles General Cement Company SA, a member of France's Lafarge Group, the world leader in building materials, to purchase 378,000 m2 for the development of the resort and real estate. The golf land belongs to the municipalities of Iolkos and Portaria and has been leased by the developers for 50 years. The developers expect to start digging in December 2006 or early 2007.

In the village of Nies, near Volos, Greek-Canadian investors, the Holy Metropolis of Dimitrias and Almyros as well as the surrounding municipalities in the Magnesia prefecture are in the process of developing a golf resort with a 5-star hotel, an 18-hole golf course, a sports and horse-riding complex, a conference centre, a good number of high-quality villas and other amenities. The project's architect and hotel operator will soon be announced. The development is under the jurisdiction of the Municipality of Sourpi. The EUR 160-200 million project will be developed on a plot of land belonging to the Church. The developers hope to commence construction in September 2005, according to Panagiotis Georgiadis, the mayor of Sourpi. The idea for this new development was conceived in 2000. G.R. Golfing Resorts, developers of the Kilada Hills Golf & Spa Resort in Argolis, is also believed to be involved in this project, which covers approximately 1.2 million m2 with a 2,500 m2 seafront at a distance of 2 hours and 45 minutes from the Thessaloniki International Airport - "Macedonia". The necessary supporting permits and options have been secured, together with the submission of documents for the first stage Environmental Impact Study. Toronto, Canada-based Four Seasons Hotels and Resorts is rumoured to be interested in managing this resort.

Albatross Investments & Developments Pty. Ltd.: In Margariti, Thesprotia in North-West Greece, the Belltower Golf and Residential Development, an integrated golf, spa, leisure, tourism and real estate resort, is being planned by Greek-Australian developer Albatross Investments & Developments Pty. Ltd. Located in over 2,500,000 m2 of sweeping Mediterranean, Tuscany-like panorama, the resort is supposed to include an 18-hole golf course, 200-room, five-star hotel, restaurants, bars, convention centre, spa and health centre, gymnasium, executive learning centre, tennis academy and soccer academy. Tony Cashmore of Antony Cashmore & Associates Pty. Ltd. and Malcolm Davidson from Australia are involved in this new development, which is located between Pargas and Igoumenitsa.

Tourism Development Company SA: A new tender for the complete re-do of the Afandou Golf course on the island of Rhodes is expected soon, a project expected to upgrade the existing property to international standards.

Municipal Company of Glyfada: In addition, experts say that the 18-hole, municipal Glyfada Golf Course in Athens will need to be renovated. A number of other potential projects including a golf course near the Athens International Airport, are reported to be in varying stages of readiness.

Since studies have shown that more than 200,000 visitors to Greece annually are potential golf tourists, it is easy to understand the current interest to develop this high-end attraction in one of the word's most attractive climates. Yiannis N. Paraschis, Vice-President of the Hellenic Golf Federation, believes "now is the perfect time for business people to consider Greece as a golf investment location. The new legislation, the interest by the government, and the locations available today translate into unprecedented opportunities that will pay off handsomely."

The investment landscape is changing rapidly in Greece. Three investment schemes, backed by a EUR 600 million foreign capital inflow, are entering the implementation phase.

With a dynamic investment strategy, the following major investments in three regions of Greece are currently in the pipeline:

• Island of Arkoudi SA ("Nisos Arkoudi AE"): On Arkoudi island in the Ionian Sea, between Cephalonia, Lefkada and Ithaki, a high-standard tourism investment in an area of 400 hectares is underway. The estimated total expenditure is EUR 88 million. This investment, expected to create 300 new employment positions, will include 140 luxurious accommodation settlements, marinas, spas, an 18-hole golf course, and other sports facilities.

• In Volos, at the Municipality of Iolkos, a tourism complex with an estimated total expenditure of EUR 250 million is being developed. The investment will include the construction of a luxurious hotel complex comprising 150 five-star rooms, villas, and a convention centre, a golf course of 120 hectares, a thalassotherapy centre, a heliodrom and a marina with a capacity to accommodate 150 boats. It is estimated that this operation will create 800 new employment positions.

• Greenwell Golf & Leisure Projects: In Crete, the Matala resort, a tourism investment of EUR 250 million, is underway. The high-standard tourism unit will create more than 300 positions for permanent and seasonal employment.

Matala Golf & Resort

The coast, south of Matala (photo courtesy of the Crete Gazette)

The Matala Golf & Resort in the South of Crete is an ambitious project concerning a tourist complex that will consist of two golf courses and a high quality resort. The golf courses, one with 18 holes and the other with 9 holes, will be spread over an area of about 900,000 m2.

The resort, on the other hand, will comprise two five-star hotels of an overall capacity of 1,500 beds, a thalassotherapy centre able to accommodate 200 people, a conference centre for up to 500 people, a sports centre, a medical emergency clinic, a pedestrian shopping area of about 16,000 m2, a thematic park offering the visitor the opportunity to get acquainted with the local biological cultures and get a taste of them, exposition halls, a helipad and, last but not least, a residential complex consisting of houses and villas (about 360 units in all) that can be let or sold.

"As you can see, what we have in mind is a complex which, when fully developed, will be able to accommodate about 3,000 people," says Greek architect and project coordinator Yannos Gianniotis. "The whole complex, including the golf courses, will be spread over an area of 250 hectares.

"The golf course design is carried by Bruno Steensels [of MasterGolf bvba], a leading Belgian golf course architect. Other professionals cooperating with our architectural firm YANNOS GIANNIOTIS - PAUL NIILEND include Joseph M. Gill [Managing Partner of The Golf Consultancy in Miami, Florida], Hubert Hannes, and Jean Rentzepis [of Athens-based J&P Development SA]."

Who are the primary investors in the project and why did they choose Crete?

"Our primary investors are a group of Belgian businessmen who have chosen to keep their anonymity, for the time being. The Belgian General Manager of Oostakker-based Greenwell Golf & Leisure Projects, representing the investors, is Johan Vandeweghe.

"The reasons why, among many other options, Crete was chosen for this particular investment are as follows:

Crete has been a well-known tourist destination for many decades now. It combines -- especially in the South -- an unspoiled Mediterranean landscape of exceptional beauty with a moderate climate and sunshine at levels reaching 300 days per year. 

It offers alternative forms of tourism such as hiking, which offers the tourists the opportunity to discover the rich flora and fauna of the island either by hiking through canyons such as the Samaria canyon, or by climbing the slopes of Mount Psiloritis or of the White Mountain. It is a perfect combination of holidays not only with exercising, sports and all forms of physical activity but also with more intellectual pursuits such as acquaintance with the rich cultural heritage of the island dating back to the Minoan times. So, one can visit the Minoan palaces of Knossos and Faestos and marvel at the exquisite beauty and craftsmanship of the numerous objects that were excavated by the archaeologists’ pickaxe, most of which are on display at the world-famous museum of Heraklio. Of great interest are the monasteries of the island --Toplou, Preveli, Gouvernetou, Arkadi, to name just a few -- and the relics of the Franco-Venetian occupation of the island in the cities of Chania or Rethymno. Moreover, most of the tourists that choose Crete for their holidays come from European countries in which golf is a widespread sport."

Do you believe golf has a potential for significant growth in Greece?

"Taking into account the advantages in climatic conditions, on one hand, and the natural beauty of Greece, on the other, we have come to the conclusion that Greece has unquestionable competitive advantages that can make it one of the favourite destinations of golfers, especially now that golf is gaining ground rapidly on a worldwide scale, and has come to be appreciated as a most beneficial physical activity.

"Greece, with its rich flora and fauna (12,000 kinds of flora in a total of 19,000 the world over, can be found in Greece) and its natural morphological diversity has the prerequisites for a dynamic development of the sport. Nowadays, the developmental policy of the government definitely considers golf a subject of paramount importance in the country.

"The national strategic investments, including golf course facilities in combination with the development of high level tourist infrastructures and real estate developments in the vicinity of golf courses, have the direct support of the Greek Government. The new investment law 3299/2004 provides for grants and tax exemptions with a view to making the sector more attractive to direct foreign investments."

How important is it for a golf project to have residential facilities close by, such as holiday and year-round homes?

"As extensive research shows, in order to respond to the needs of the market, it is important for a golf project to have residential facilities nearby, whether they are part of an existing urban layout or, as in the case of new land-planning, they are situated in a natural environment in the countryside.

"What is more, these facilities should be accompanied by specially designed, high level real estate development.

"We are of the opinion that the optimal planning comprises 5 and/or 4 star hotels, holiday and year-round homes with all the necessary facilities that will meet the demands of high-level local and foreign tourism.

"It should be noted that, recently, a large number of Europeans has decided to establish themselves permanently in Greece, either in traditional villages by renovating old residences or in the countryside and especially near the sea, by buying seaside lots. They are usually retired citizens who want to take advantage of the natural beauty and the mild and dry climate of the country. These people could just as well choose a resort that offers all the necessary infrastructures as is the case in other Mediterranean countries or the USA."

What advantages does Greece and Crete offer to foreign investors?

• "Greece, and especially Crete, is an established international tourist destination.

• Crete already has 3 international airports with 2,500,000 tourists per year.

• It is a safe and peaceful place without internal conflicts.

• As a member of the European Union, Greece has a stable monetary environment.

• The climate in Crete is the mildest in the whole Mediterranean, with year round sunshine and ideal temperatures and humidity.

• The natural beauty of Greece and especially of Crete, with its exquisite beaches, its snow-covered mountains and its rich hinterland is known all over the world.

• The rich cultural heritage of Crete, its traditions and its hospitality make it an interesting and attractive destination.

• The local agricultural products and the Cretan diet are world famous.

• Crete has a strong regional economy.

• The Greek government has the political will to support the implementation of such projects. This is put into practice through the new legal framework and investment law for the development of high-level and specialised tourist facilities.

• The return on investment, as estimated by acclaimed international financial consultants, is at a high level in relation to the low risk of the investment."

Cretan Golf SA (The Crete Golf Club): British PGA professional Harris Zervos, General Manager of The Crete Golf Club in Hersonissos, which opened in 2003, says that Crete is especially suited for becoming a golf destination, since "we have the land, we have the very good 5-star hotels and we have the mild, non-humid winters with the perfect golf weather." The Club's busiest months are March through May and September through November. October had the highest attendance accounting for 28% of the yearly annual green fees. Up to now, 70% of the Club's clients are German golfers. Athens-based attorney-at-law Michael Vranas has been the visionary moving force in opening the way for The Crete Golf Club and the new era of golf development in Greece. He is co-owner of the Robinson Club - Lytos Beach and President of the Club. Cretan Golf SA ("Kritika Golf AE") owns the 18-hole, par 71 Championship standard course on a 720,000 square-metre site. Vranas is currently coordinating the acquisition of bordering or nearby plots of land in view of constructing villas to offer either for sale or rent. Future plans include the construction of at least two more golf courses at a short distance from the Club.

The current Greek administration has from the beginning prioritised the creation of a favourable investment environment. The 'unblocking' of these investments will attract the interest of businesspeople from abroad who will be convinced that Greece, as a destination country, favours investments and pursues business-oriented policies. I believe that the implementation of large and high-quality investments will radically change the business climate."

For further information on these and/or other business, investment and partnership opportunities related to golf and leisure-integrated real estate developments in Greece, contact Peter Michel Heilmann, Founder & Director, INVgolf, at info@invgr.com or on +30 699 272 4102.

Sources: ELKE E-news, INVgolf.com, Financial Times (Kerin Hope, June 18, 2005), Minoan Group PLC, PGA Golf Management.

Last updated: April 14, 2006.

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