The Greek Economic Crisis Could Turn Athens Into a Major Beach Destination

"Sell off your islands … and the Acropolis with it!" screamed the German tabloid Bild in 2010, in one of the most widely resented headlines of the Euro crisis. Four years on, the Greek government is probably the closest it will ever be to doing just that. It is selling off a chunk of Athens larger than Central Park and three times as large as Monaco, all for €915 million.

The site, bought by Chinese conglomerate Fosun on a 99-year lease, is the Greek capital's old Hellenikon airport, closed in 2001 and not fully redeveloped since. It has huge potential, not least because the deal obliges Fosun and its Greek partner Lamda Development to spend at least €1.25 billion developing it. Actual costs are likely to reach far higher, up to €7 billion, which would make this the largest single private investment in Greece's history. In a country hungry for such investment, the prospect of all this development is extremely enticing. Still, there are nagging concerns. As governments across Southern Europe shed state assets to comply with austerity programs, there are fears that the airport is being sold off much too cheap, while long-term plans for the spot are summarily junked.