The Fraport-Copelouzos Group consortium has been selected as the preferred bidder in the Greece regional airports' tender procedure, which would consist of an upfront payment of €1.23bn and an annual payment of €22.9m for the life of the concession.
The concession has been given to the consortium by Hellenic Republic Assets Development Fund (HRADF) for a 40-year period, which would involve 14 regional airports in Greece. Fraport will hold a majority share in the consortium.
The consortium has placed a higher bid than those of Argentina's Corporacion America holding group with Greek construction company Metka, and France's Vinci with contractor Ellaktor from Greece.
The airports included in the tender are Aktio, Chania (Crete), Kavala, Kefalonia, Kerkyra (Corfu), Kos, Mitilini, Mykonos, Rhodes, Samos, Santorini, Skiathos, Thessaloniki and Zakynthos. These airports collectively served a total of around 19.1 million passengers in 2013.
The consortium will be responsible for maintaining, operating, managing, upgrading and developing these 14 airports until 2055.
Fraport executive board chairman Stefan Schulte said: "The Greek regional airports add another airport investment with dynamic development potential. The choice for Fraport underscores our position as a leading global airport manager.
"Our extensive know-how gained over many decades will contribute to expanding and strengthening the competitive position of the Greek regional airports."
Copelouzos Group founder and chairman Dimitris Copelouzossaid: "Modernisation of the airports will allow us, via reliable and safer transportation services, to further enhance Greek tourism continuously - thus empowering competitiveness of the local and national economies and generating new jobs.
"Our goal is to create airport gateways that meet the growing needs and expectations of the Greek people as well as visitors from around the globe."
Fraport is the operator of Frankfurt Airport and has been expanding its international footprint. It also recently agreed to acquire a majority stake in Ljubljana Airport in Slovenia for €177m. Apart from that, it also owns stakes in airports in Peru and Bulgaria.
Image: Fraport operates Frankfurt Airport and also has stakes in Ljubljana Airport in Slovenia. Photo: courtesy of Fraport.