Hines Investments Snaps Up Crete Luxury Resorts

A few hours ago, it was announced that Houston-based Hines real estate investments won a bid to acquire the assets of the Out of The Blue Capsis Elite Resort in Agia Pelagia, on Crete island in Greece. 

According to the reports, the international investment firm acquired the 5-star luxury resort for €125.2 million. Hines Interests Limited Partnership, one of the world’s largest real estate investment and management firms, outbid Prodea and Pireaus Bank by a wide margin. 

Capsis Blue is one of Greece’s most iconic seaside resorts, which sits on the ruins of the ancient city of Apollonia on an idyllic bay west of Crete’s capital in Heraklion. The unique 1155 bed resort sits on a peninsula overlooking Agia Pelagia Bay and the Cretan Sea. 

The magnificent 500 all suites and private villas property belonged to the company Tourist Complex Kapsi SA and Mrs. Konstantina (Dias) Kapsi. Capsis was in litigation because of debt for several years. The coronavirus pandemic caused this property and many others into receivership. Capsis was put under special management in June of 2020.

Agia Pelagia is a picturesque former fishing village situated on a perfect bay at Crete island’s north shore. A popular destination for both locals and tourists, the town boasts dozens of traditional fish taverns, luxurious bars, and perfect aquamarine waters protected by the bay. The Blue Capsis resort sits on a high peninsula overlooking the bay and the village and has hosted Saudi princes, movie stars, Russian oligarchs, and a laundry list of the well-to-do over the years.

This acquisition follows on the heels of news Henderson Park and Hines taking over a portfolio of other hotels in Crete last month. That deal included several of the island’s most successful hotels, the Hermes, and Coral near Agios Nikolaos, Santa Marina and Apollonia Beach at Amoudara in Heraklion, and Sitia Beach (Instagram above) at the eastern seaside resort of Sitia. That deal, worth a reported €61 million, transferred ownership of 3 of the hotels from the Kefalogianni family.

The Hines investment firm, founded in Houston in 1957 by Gerald D. Hines, oversees a worldwide portfolio valued at approximately $160.9 billion. The firm, headed by the founder’s son Jeffrey C. Hines, has 181 developments currently underway worldwide. Historically, it has developed, redeveloped, or acquired 1,450 properties, totaling over 485 million square feet.