Minoan Group celebrates as Crete project is fast-tracked

MINOAN Group, the Glasgow-based travel agency and ­property developer, has taken the “most significant step yet” towards building its hotel and leisure development on Crete after the Greek government yesterday agreed to fast-track its planning application.

Aim-quoted Minoan, which is run by former Airtours chief executive Duncan Wilson, wants to build just under 2,000 hotel rooms along with sports and leisure facilities on the Cavo Sidero peninsula in north-east Crete.

Plans for the site were first drawn up in 2007, but were rejected by officials in 2010 on environmental grounds.

Now the Greek government has introduced a fast-track planning system as one of the measures to try to revive the country’s faltering economy.

Conor Fahy, an analyst at ­Equity Development, said: “Fast-track has been devised by the government specifically to by-pass the endemic bureaucracy and red tape that has bedevilled the project from its inception.

“Although there are hurdles yet to be jumped, they are set very low in comparison with what has gone before, and we think it now very likely that final approval will be achieved by early next year.”

Candia Investment Corporation bought a 10 per cent stake in the project for £2 million in June and has an option to acquire a further 15 per cent for £12.5m. Fahy said the deal with Candia values the Cavo Sidero project at £50m, although an assessment carried out by property consultancy CBRE estimated that it may be worth €100m (£80m) with planning consent.

Christopher Egleton, chairman of Minoan, said: “We are delighted that the Greek government has granted our Crete project fast-track status. It is definitely the most-significant step yet in terms of bringing the project to fruition.”