After years of silence, the much-discussed investment plan in the Kassiopi-Erimitis area of Northern Corfu is making a strong comeback, reigniting intense concerns and reactions within the local community. American-owned Calamos Investments, led by Greek-American investor John Calamos and CEO John Koudounis, appears to be moving from a waiting phase to actively implementing the project.
The Re-activation of a Controversial Project
According to reliable sources, there has been clear activity recently, as procedures for revising building permits, originally issued during NCH Capital’s tenure, have been set in motion. Information suggests that construction sites are planned to be established in the area in the coming months. Concurrently, the new investment scheme has already requested and received approval for an extension of the environmental terms of the urban planning study, a move approved by the Central Architectural Council. This development indicates that procedures are not solely at the planning stage but also at an institutional level, with a clear goal of maintaining the project’s licensing ‘continuity’.
A New Special Purpose Vehicle and Ownership Change
A crucial role in the project’s restart is played by the establishment of a Special Purpose Vehicle (SPV). This is FABERFAST INVESTMENTS Single-Member S.A., a subsidiary of Calamos Investments, founded in March 2024. The company focuses on portfolio and investment management, with an emphasis on corporate participations and the acquisition and exploitation of real estate. Its share capital amounted to 25,000 euros and is fully covered by FABERFAST LTD, which holds 100% of the shares. The management is exercised by a three-member Board of Directors with a six-year term, with Dimitrios Kontogiannis as Chairman and CEO, and Antonios Alexandris and Klearchos Angelos Dimitropoulos as members.
According to the same information, Faberfast Investments is collaborating with the old company, New Corfu Real Estate Investments, a subsidiary of NCH Capital, which the new investment scheme acquired through a transfer of shares. In other words, the change of ownership occurred at the shareholder level. Faberfast now assumes full administrative and financial control of the project, aiming to lead it to the next phase of implementation.
Wave of New Reactions from Local Community
Against this backdrop, the ‘Erimitis Plous’ association issued a statement, noting that NCH Capital has withdrawn from the area since late May 2023, and new investment entities have emerged. As emphasized, all this is taking place during a period when Corfu is ‘suffocating’ from unprecedented construction activity, which is altering the island’s character and severely burdening the daily lives of residents and visitors.
Particular reference is made to the pressure on common resources – road network, water supply, waste management – with underfunded local government unable to cope, passing the cost on to citizens through increased municipal fees. The association speaks of ‘unfavorable developments’ in Erimitis, emphasizing that it is a complete ecosystem and a key element of the island’s natural and cultural heritage. For this reason, the Board of Directors decided to convene an open assembly of the local community on Sunday, February 8, calling on citizens to take a public stand: “Erimitis is once again threatened with destruction. Will we accept it or will we react?”
Criticism of the project also focuses on the perennial argument of job creation. As local bodies point out, the area already faces a severe labor shortage, with businesses struggling to operate normally for the past two years, making the real added value of new jobs questionable.
On a legal level, recourse to the Council of State is no longer considered an effective tool. The investment scheme is moving in a way that avoids new approvals that would require a new review by the Council of State, requesting extensions and revisions within the already approved urban planning framework. Building permits, although administrative acts, do not have a suspensive effect, meaning that even an appeal does not automatically stop works.
Promises of ‘Mild Development’ and Open Questions
Calamos acquired the 438-acre ‘prime property’ from the American fund NCH Capital, paying a price that, according to information, amounted to approximately 30 million euros. However, the American company has let it be known that the new investment plan will be on a smaller scale, with approximately 20% less construction compared to NCH Capital’s original plan and a greater emphasis on preserving the natural environment, even using materials such as wood. The focus is on developing a luxury hotel and villas, designed by world-renowned architect Sir David Chipperfield.
The Kassiopi Project, while promising economic benefits, raises fundamental questions about sustainable development, environmental protection, and the social fabric of Corfu. Is the allure of luxury tourism overshadowing the long-term well-being of the island and its inhabitants? The local community’s strong reaction is a clear indicator that the balance between economic growth and environmental stewardship is a delicate one, demanding careful consideration and transparent dialogue. As construction looms, the eyes of Corfu, and indeed Greece, will be on Erimitis, watching to see whether ‘mild development’ truly materializes or if the island’s natural heritage will once again bear the brunt of unchecked investment.
Source: https://www.powergame.gr/akinita/1296152/i-epanekkinisi-tou-kassiopi-project-apo-tin-calamos-prokalei-nees-antidraseis/
