Fraport Greece Begins 40-Year Concession at 14 Greek Regional Airports

Frankfurt (ots) -

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Greek State receives EUR1.234 billion upfront payment - Fraport
Greece will further invest about EUR400 million for improving and
expanding the airports' infrastructure by 2021 - Focus on enhancing
facilities, operational processes and the passenger experience -
Single largest expansion of Fraport Group's international airport
portfolio says CEO Schulte

Fraport Greece (73.4 percent owned by the Frankfurt based airport
operator Fraport AG and 26.6 percent by Copelouzos Group) today
commenced the 40-year concession for managing and developing 14
regional airports on the Greek mainland and popular holiday islands -
a mamoth investment for the country's infrastructure and economically
vital tourism sector. Following the operational transfer of the
airports, Fraport Greece today paid the upfront concession fee of
EUR1.234 billion - the biggest concession fee in Greece's history -
to the state-owned Hellenic Republic Asset Development Fund (HRADF).
Along with this upfront fee, an annual fixed concession fee of
EUR22.9 million will be paid to the Greek State, as well as a
variable annual fee based on 28.5 percent of Fraport Greece's yearly
operational profit (EBITDA - earnings before interest, tax,
depreciation and amortization). Actual ownership of the airports is
retained by Greece.

Dr. Stefan Schulte, Fraport AG's executive board chairman
explained: "Since being selected as the winning bidder for the Greek
Regional Airports in 2014, we have remained steadfastly committed to
this visionary project. We believe in Greece and its potential as one
of the greatest travel destinations in the world. The goal of
Fraport Greece is to enhance the travel experience for visitors from
around the world - by upgrading and expanding facilities and by
improving operational processes, shopping and services. Today is a
great day for Greece and its people. It is also an important day for
us because Fraport Greece is the single largest expansion of our
airport portfolio and a milestone in further growing our
international business."

Currently, Fraport generates more than 20 percent of its annual
revenue through its portfolio of international airports and
subsidiaries, bundled in the company's External Activities & Services
business segment. With the operational transfer of the Greek
airports, the Fraport Group will significantly enlarge its
international activities, further broaden its worldwide footprint and
reduce dependency on the development in single regions or markets.

The 14 Greek regional airports served a total of 25.3 million
passengers in 2016, an increase by nine percent year-on-year.
Fraport Greece will operate, manage and develop the airports over the
next four decades - with responsibility for aviation as well as
non-aviation areas. The mainland airports include Aktion (PVK),
Kavala (KVA) and Thessaloniki (SKG), Greece's second largest city.
The eleven island airports are located in Kerkyra/Corfu (CFU),
Chania/Crete (CHQ), Kefalonia (EFL), Kos (KGS), Mytilene/Lesvos
(MJT), Mykonos (JMK), Rhodes (RHO), Samos (KGS), Santorini (JTR),
Skiathos (JSI) and Zakynthos (ZTH).

Alexander Zinell, Fraport Greece's CEO, emphasized: "Today marks
the beginning of a new era for the 14 Greek regional airports.
Within only twelve months we have created Fraport Greece, a
world-class airport operator with over 500 highly motivated staff
eager to move each of the 14 airports forward into the future. We
will develop and manage the airports for the benefit of passengers
and airlines - for all stakeholders. These mainland and island
gateways will act as a catalyst of growth for Greek tourism as well
as other industries. Well-managed airports have been proven to serve
as dynamic economic engines for their regions. We appreciate the
outstanding support received throughout Greece and look forward to
the challenges and opportunties ahead."

Under the concession agreement, Fraport Greece will be investing
about EUR400 million for improving and expanding the airports'
infrastructure over the next 48 months. Hence, Fraport Greece
recently signed an agreement with the Greek-based Intrakat
construction and engineering company to refurbish, expand and build
new facilities at the 14 airports - including five new passenger
terminals. In subsequent years, Fraport Greece will make investments
for maintenance and demand-driven capacity expansions.

Approximately EUR1 billion in long-term financing for the Greek
Regional Airports project is being provided by a consortium of
leading financial institutions. Some EUR280.4 million of the total
loan will be used to finance construction projects at the 14
airports, while EUR688 million will be used as part of the upfront
concession payment to HRADF. Fraport Greece recently raised its
total equity capital to EUR650 million.

For further information about Fraport AG please click here:
http://ots.de/OlNxn

Contact:
Robert A. Payne
International Spokesman
Press Office, Corp.Communications
60547 Frankfurt, Germany
Telephone: +49 69 690-78547
E-mail: r.payne@fraport.de
Internet: www.fraport.com
Facebook: www.facebook.com/FrankfurtAirport

Original-Content von: Fraport AG, übermittelt durch news aktuell