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Construction firms eye student housing deal in Crete

Leading construction companies are expected to bid for the construction of two student living quarters in Rethymno and Iraklio that will house a total of 3,000 students. The deal is being awarded by the University of Crete via a public-private partnership. The duration of the contract will run for 30 years with the first three years relating to the construction period.

The launch of a 255 million euro tender for the construction of two student accommodation centers in Crete, the largest deal of its kind in Greece, is expected to draw strong interest from construction companies. Bidders have until January 21, 2020, to express their interest in a tender involving the construction of two student living quarters in Rethymno and Iraklio that will house a total of 3,000 students.

The deal is being awarded by the University of Crete via a public-private partnership. The duration of the contract will run for 30 years with the first three years relating to the construction period.

It is the first organized attempt in Greece to cover the living needs of university students who have been struggling to find a place to stay. The sharp rise in demand for homes on Airbnb type platforms has severely limited the supply of homes available for rent in the island's urban centers. Data shows that nearly 20,000 apartments were put on sites for short term rentals in the last month, a time of year when demand from tourists has moved away from summer peaks.

As foreseen in all PPP agreements, the company will be responsible for the maintenance and repairs of the building for the whole period in order to keep the standard of accommodation high. The fee to be received by the company from the Univerity of Crete will be tied to qualitative specifications being met.

A previous PPP agreement that was completed in Greece recently related to the construction of 10 school buildings in the Attica area by construction firm Avax. The company sold the agreement to Swedish property company Sterner Stenhus, run by Greek Swedish entrepreneur Ilias Georgiadis. The deal was worth 8.8 million euros, plus an existing 33.4 million euro loan that was taken on by the Swedish company.

The agreement initially signed by Avax was worth 52.6 million euros and runs for 22 more years.

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