Attiki Odos: The new concession in the final stretch – Interest from over 15 foreign and Greek groups

Alliances are “locking” and negotiations culminating in the final straight for the new concession of Attiki Odos.

The interest shown by more than 15 Greek and foreign groups, international funds and large private equity investors on the threshold of the first phase is unprecedented, but for those who know the dynamics of the asset it is no surprise. Of course, the map of investment interest, which according to estimates will raise the price to levels over 2.5 billion euros, will be supplemented by the submission of interest that after a small extension expires on May 5.

The competition and the terms

The design of the competition by the Hellenic Republic Asset Development Fund-HRADF is such as to attract large wallets and international interest. This is reflected in the terms, as the candidates should have an average of at least 400 million own funds for the last three years or, in the case of funds, funds under management at least 2 billion euros.

The recent amendment, which reduced the percentage of direct or indirect participation in a corresponding road concession from 20% to 10%, opened the door for those interested.

Traditional European groups with experience in managing congested highways, such as the Spanish Abertis, the Portuguese Brisa and the well-known in Greece Vinci, are very close to participation, while the dossier of the process also cam into the scope of Italian Autostrade.

Strategic collaborations

The prospects of the competition are being explored by investment schemes such as Roadis of the Canadian PSP Investments, which manages one of the largest pension funds in the world, the German Allianz, the American DIG Capital Partners and the French group Ardian.

Greek clubs that are considering strategic collaborations with strong foreign players are preparing to give a strong “present”.

The shareholders of the existing concession, ELLAKTOR and AVAX Groups, which are considered a “safe bet” from the beginning, will jointly seek with a new ally to level the field for the new phase.

They are going to finance their participation in the investment from the money that will be in the funds of Attiki Odos, at the closing of the concession.

Time is pressing

It remains to be seen what will eventually happen with the French firm Egis, which participates in the existing consortium, but is also close to the GEK TERNA Group with which it claimed and won the tender for the Egnatia Odos. The Kopelouzos Group is expected to participate in a joint venture with the Australian Macquarie, which recently acquired a 49% stake in HEDNO, while the puzzle of participation will include a construction company.

The time frame is already very narrow, as the existing concession contract expires at the end of 2024 and the new one, lasting 25 years, will have to take the baton. The goal of the HRDH is the process to proceed without delays, in order to have a contractor within 2023.

Resilience in the midst of a pandemic

Attiki Odos is today one of the most attractive assets in the process of development globally, and the most profitable concession highway in the country.

Revenues from tolls, over the last fifteen years, are approaching 3 billion euros, while net profits after taxes reached 701.7 million. During the pandemic, it showed great resilience, reaching pre-Covid levels in the second half of 2021.