HCAP is here to stay, as it will play an active role in modernising State-Owned Enterprises, creating goodwill for its subsidiaries, ensuring improved services and, of course, creating additional value for its shareholder, the Greek State.
Gregory D. Dimitriadis, CEO of the HCAP (Hellenic Corporation of Assets and Participations), explained that a new strategic plan covering the entire group, with actions, synergies and schedules, will be presented by autumn. With 35,000 employees, the group is the country’s largest employer.
He reveals that there is a strong interest from a large number of serious investors and describes his active involvement in the decisions of the group’s subsidiaries, including the Hellenic Republic Asset Development Fund (HRADF) and the Public Properties Company S.A. (ETAD). He does not hesitate to admit that HCAP’s top asset is real estate, “a sector in which we can actually compare with corresponding public wealth funds abroad”. He explains that the new HRADF management “has a mandate to not only accelerate its schedule, but also update it”, while ETAD must “develop a complete plan for its real estate strategy and ensure it has the appropriate structure to implement it”, in cooperation with the private sector, so that it can proceed with the systematic maturation and development of its real estate.
– Do you intend to accelerate public property development procedures? According to the market, the experience from the first five years has not been particularly productive.
I will put it bluntly: I believe in fast and transparent procedures and always consider them to be a crucial factor for achieving positive results; however. they are not the major issue. I am saying this even though, during my four months at HCAP, we have moved fast and can already show tangible and measurable results in individual sectors of our area of responsibility. We can indicatively mention the airport of Kalamata and the plan for the development of the Corinth Canal. Also EYDAP where, in cooperation with the company’s management and the Ministry of Infrastructure, we have found a solution to an issue that had been pending for 16 years and, indeed, this solution was warmly welcomed by the investment community. It is also of great importance to citizens, as it ensures that the cost of water will remain very low for the next 20 years, while the company can now proceed with its restructuring as well as its investments in network upgrades. Of course, even more important than the procedures is our faith in the work we undertake, or should I say the mission, as this word applies to the development of public assets. And this is where our understanding of the role of HCAP comes in, because this is the essence of the issue of productive results that benefit both the State and the citizens. I have been saying this in various ways since the beginning of my term, but let me say it now with even more emphasis: HCAP is here to stay, as it will play an active role in modernising State-Owned Enterprises, creating goodwill for its subsidiaries, ensuring improved services for citizens – consumers and, of course, creating additional value for its shareholder, the Greek State.
– What are your key priorities and the relevant schedule?
We consider all companies in our portfolio to be a priority. HCAP has in its portfolio more than 17 subsidiaries and participations, each in a different and very important sector of the Greek economy. I can indicatively mention EYDAP, EYATH, the new 5G company, FAISTOS, as well as our share in PPC. We have companies serving hundreds of thousands of citizens every day, such as ELTA and Athens Transport. We also have Hellenic Saltworks, our subsidiaries with the Food Markets of Athens and Thessaloniki (CMFO and CMT) and the TIF. We also attach great importance to all State subsidiaries managing the country’s real estate, such as ETAD, TAIPED and GAIAOSE, as well as the iconic Corinth Canal (AEDIK). Each of our companies has its own hidden surplus value and must plan its own evolution, restructuring (where required) and investment plan, in order to take advantage of its own opportunities and prospects. Specifically, we believe that with the right management each of our subsidiaries can become a separate “best practice” case for the country, while any improvement will have a great positive impact on the economy and society. A strategic plan covering the entire group, with actions, synergies and schedules, will be ready in October.
– Do you believe that the HRADF portfolio development plan needs to be accelerated?
We are just coming out of a two-year period during which the HRADF privatisation plan was necessarily delayed, especially in 2020, due to the pandemic. The new HRADF management was selected based on its complementarity and with the aim to manage the assets not individually, as has been the case so far, but having in mind a total national logistics strategy for the country. In this context, the new management has a mandate to not only accelerate the schedule, but also update it. As you know, large projects are already under way, such as the regional ports, the Egnatia Motorway, and of course the signing of the contract for Hellinikon, which took place on the 25th of June. The overall change observed in our portfolio is the great interest expressed by a large number of serious investors in most projects, which highlights the confidence of the investment community in the country’s prospects.
– Are there any horizontal actions for the participations held by HCAP?
The mission of HCAP is interwoven with the maximisation of the value of public property and the improvement of the services offered to the citizen, for the benefit of whom –we should not forget– some of these companies exist. As a group we are the country’s largest employer, with 35,000 employees, and we recognise our responsibility for the proper development of our companies as well as our people. We support our companies in their energy and digital transition, prioritising issues of corporate governance, transparency and sustainability. This is a necessary step in their evolution.
– What exactly do you intend to do with the Public Properties Company portfolio?
Under the management of Mr Vlastos, ETAD is proceeding with a number of projects, many of which are quite complex. These projects are progressing, if we take into account the fact that the pandemic has had a very big impact on the real estate sector. Since the beginning of the year, the ETAD team has proceeded with important concessions and tenders, such as the Galatsi Olympic Center and the recent agreement of the management regarding new investments in the Gouvia marina in Corfu, where the lease agreement was also extended for 15 years. In a symbolic gesture, the florist stores at the Parliament building are also being renovated. In any case, ETAD needs to develop a complete plan for its real estate strategy per category and ensure it has the appropriate structure to implement it. Also, in order to accelerate this process, it must cooperate with the private sector and proceed with the systematic maturation and development of its real estate.
– So, is there a coherent plan for the number of tourist real estate properties controlled by ETAD or HRADF? Are you working on this?
I think that, at a central level, HCAP is called to play a more strategic and coordinating role with a more comprehensive view of the country. This is because we manage a number of strategic assets throughout the country that are related to tourism, not only real estate but also marinas, ports and airports. The main team of the HCAP, in cooperation with the management of the subsidiaries, can offer the best and most coordinated use of these assets, regardless of whether they belong to ETAD, HRADF or any of our other companies.
Intervention in the means of transport
– You recently intervened in relation to the strike of the means of transport during the Greek university entrance exams. Was this an entry into “political fields”?
No, not at all. HCAP is not involved in politics and does not plan to. But is does have a voice. It manages the crucial issue of public assets and, whenever it considers that it must talk about the issues of the companies under it, it will do so. Public assets are not only our history but also our common heritage, our common wealth, and they deserve absolute respect. This was the point of our intervention in the strike of the means of public transport and I believe that we were right in doing so.
Modernisation of airports, ports
– Would you like to say a few words about your plans regarding airports, marinas and ports?
Following the completion of the upgrading of the 14 major regional airports, we all understand, especially in local communities, the huge benefits that can result from the involvement of private parties in this sector within a very short period. Based on this experience, we will proceed with the remaining 23 smaller airports, starting with Kalamata, where tourist traffic has increased dramatically in recent years. We have already launched a tender for the consultant who will help us choose the best possible way of development, which will not necessarily be the same for all airports. Regarding ports, we have started with Igoumenitsa, Alexandroupoli and Kavala, which have already gathered significant investor interest, while Heraklion will follow. Regarding marinas, we also intend to accelerate development procedures, in cooperation with local communities. All these projects are closely interwoven with the growth of tourism in the coming years.
– Which do you believe are HCAP’s most promising assets that can contribute to growth today?
As I mentioned earlier, HCAP operates as a tool for the growth and modernisation of State-Owned Enterprises. Therefore, all projects can contribute to growth, each with a different logic and in a different sector. Of course the top one is real estate, a sector in which we can actually compare with corresponding public wealth funds abroad. We should also note that some projects may seem relatively “low profile” but have an extremely high impact at local level, for the community and the development of a region. At the same time, very important projects related to energy transition are being implemented by our subsidiaries, PPC, EYDAP and EYATH, and this will drastically improve the environmental and energy footprint of these companies.
