Heraklion Port Authority (OLI)
on the instructions of Heraklion Port Authority (OLI)
Savills Hellas has been instructed to proceed with the study for the development-construction, financing, operation-maintenance of the buildings, marina, seafront and cruise and ferry terminals of the port of Heraklion. The main target of this task was to determine on the potential development of the facilities and to derive development scenarios that could produce a good outcome for OLI.
The existing buildings within the Heraklion Port cover total area of 11,313.72 sq.m. Most of the buildings are old, developed in the years before 1975, therefore in need of redevelopment.
As part of the valuation process Savills were required to calculate the development value of different scenarios of the property based on market data and forecasts and then to further qualify the outcome by calculating indices such as IRR and NPV.
Savills have conducted a survey in the area that the property covers and also on the surrounding areas. The scope is to analyze all the potential poles of competition to the proposed commercial development within the boundaries of the port zone as well as the characteristics of the surrounding area. Furthermore, what was required was information regarding the rental levels for commercial properties as well as market trends and supply and demand. Information was gathered also from local agents in order to get a better understanding of each location’s particulars.
After analyzing the local market in the context of the above task the two most feasible development scenarios were concluded. The main difference between the two scenarios came from the use mix.
The two scenarios were quantitatively analysed based on indices such as IRR and NPV in order to derive the best scenario. The input collected in the course of our survey (rental levels etc.) was used also in the above-mentioned calculations.