Greece extends Athens airport lease for 1.4bn euros

File: Work is currently underway to expand the airport's capacity from 26 million per year currently to 50 million passengers annually by 2046.

File: Work is currently underway to expand the airport's capacity from 26 million per year currently to 50 million passengers annually by 2046.

AFP

ATHENS - Greece's privatisation agency on Friday said it had completed a 20-year extension in the lease of Athens airport for just over 1.4 billion euros ($1.6 billion).

The agency said the process was concluded "with the payment of a total consideration of 1.403 billion euros (including VAT) by Athens International Airport SA (AIA)."

Canada's Public Sector Pension Investment Board (PSP Investments) is a key shareholder in AIA, through airport managers AviAlliance.

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The Greek state could gain over 6.0 billion euros overall by 2046 from the agreement, the agency said. 

This includes 15 percent of AIA's pre-tax profits, estimated at 1.1 billion euros, revenue from AIA's income tax for the same period estimated at 1.7 billion euros, and approximately 2.2 billion euros from the future payment of additional dividends, it said.

Additionally, AIA have pledged to invest some 2.9 billion euros during the concession period.

Work is currently underway to expand the airport's capacity from 26 million per year currently to 50 million passengers annually by 2046, including terminal extensions and new aircraft parking spaces, the agency said.

Source
AFP

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