What΄s happening with the Merlin Estate?

The Merlin Estate is back in the news with another potential investment scenario, although ownership has not changed hands and no development agreement has been announced. The historic coastal property in Dassia, owned by a company controlled by Alpha Bank, remains undeveloped despite repeated attempts to sell it over the past twenty years.

This time, the trigger is a report linking the site to business figures and an American investment fund, without providing much detail. The publication therefore bears the hallmarks of a speculative leak — what is known in the property market as a “trial balloon”.

Who owns the estate?

The property belongs to APE Fixed Assets, a company operating in the real estate, tourism and development sectors, whose shareholders are Alpha Bank, with a 72.20% stake, and Strix Holdings II, with 27.80%.

According to the company's 2025 financial statements, published in September 2026, the property comprises five land parcels covering a total area of 609.4 stremma, along with two buildings with a combined floor area of 4,662.85 square metres. The company's investment properties are valued at €42 million.

In its latest Board of Directors' report, the company states that it is examining the development of integrated tourist accommodation complexes and is preparing the property for two alternative options: an outright sale or joint development with investors. This is the most recent official statement regarding the owners' intentions. No specific prospective buyer has been named.

Previous attempts to sell

The current impasse has a long history. The property came into the possession of AEGEK through its absorption of the engineering company Efkleidis. In February 2007, AEGEK announced that it had sold the estate to APE Fixed Assets for €40 million.

Repeated attempts to transfer ownership followed. In 2016, an organised process was launched to sell all the shares in APE, with invitations for binding offers. In September 2018, Kathimerini reported that the two shareholders at the time, Alpha Bank and Piraeus Bank, were in advanced talks with interested investors.

None of these processes resulted in a publicly announced transfer of the estate. The property continues to be listed among APE's assets.

Ikos' earlier interest

In the past, reports emerged of interest from the Sani/Ikos Group, although it is not known whether that interest remains active. In the meantime, the group made a second major investment in Dassia, transforming the former Club Méditerranée property into Ikos Odisia, which has been operating since 2023.

With Ikos Dassia and Ikos Odisia, the group now has a significant presence in the same tourism zone. Its expansion is continuing in other Greek and Mediterranean destinations, with new properties included in its investment plans.

It is therefore not possible to assume that the group's earlier interest in Merlin still stands. Nor is there any substantiated information that it abandoned the prospect because of its investment in the former Club Med site. The matter remains an unresolved question from the past, rather than a confirmed current bid.

What can be built

The development of Merlin would not start from scratch in terms of planning provisions. The publicly presented Local Urban Plan for Central Corfu records specific building regulations dating back to 1970, amended in 1972, covering tourist facilities and bungalow-style settlements in designated zones.

More recent scenarios considered under the Local Urban Plan also include tourism and residential uses in the wider Merlin–Ipsos area. These, however, are planning proposals alongside older regulations.

Water supply and public access

There is also a less prominent aspect to the issue. A DEYAK borehole operates in the Merlin area and, according to an announcement by the municipal water and sewerage company in October 2024, was helping to supply Corfu Town and its surrounding areas with 2,000 to 3,000 cubic metres of water per day.

Similarly, the use of the coastal frontage, access to the shoreline and the fate of the historic buildings are separate matters of public interest, regardless of who ultimately acquires the property.

Almost twenty years after its sale by AEGEK, the Merlin Estate is still waiting for an investment proposal.

GIORGOS KATSAITIS