Israeli tourism group Aviation Links (Kishrey Teufa) and Greek real estate investment firm Palmo Group announced Sunday a partnership to complete, market and manage an €8.8 million vacation-apartment project on the waterfront in Loutraki, Greece.
The HORIZA LOUTRAKI project will convert an existing eight-story hotel into a complex of 75 vacation apartments, some of which are intended for short-term tourist rentals. Apartment prices will start at €100,000, according to the companies.
Palmo will oversee completion of the project, apartment sales and support for buyers, while Aviation Links will participate in developing and pricing the tourism product and marketing it to vacationers.
Following delivery of the apartments, the project is expected to be operated by a management company jointly owned by the two groups.
Aviation Links plans to use its existing tourism distribution network, including travel agents, companies, employee committees, consumer clubs and direct-sales channels, to market stays at the development.
The partnership creates a model in which apartments are sold to individual investors while the tourism company works to generate demand for them as vacation properties.
“The partnership with Palmo is another step in expanding Aviation Links’ activity in tourism real estate,” said Yehuda Lahav, CPA and controller of Aviation Links Group.
“We bring more than four decades of experience in tourism, deep familiarity with Israeli vacationers in Greece, and marketing and distribution systems that reach broad audiences,” Lahav said. “Palmo brings proven experience in real estate development and investment in Greece, and the combination creates a model connecting the property, the vacation experience and its management afterward.”
From hotel to vacation apartments
Loutraki is a seaside resort town on the Gulf of Corinth, roughly an hour’s drive from Athens. It is known for its beaches, thermal springs, hotels, restaurants and casino, and can be reached directly by road from Athens without a ferry or domestic flight.
The HORIZA LOUTRAKI property sits on a roughly 495-square-meter plot and has approximately 2,400 square meters of built space. The existing hotel comprises a ground floor and seven additional floors.
Plans call for studio and one-bedroom apartments, as well as shared hospitality facilities including a lobby, bar and restaurant, a wellness area and gym, a swimming pool, and a rooftop area with a jacuzzi and seating.
The companies expect the apartments to be handed over and the development to open to guests in summer 2027.
HORIZA LOUTRAKI will be Palmo’s third project in the resort town, following its Forty Five and KARDIA developments.
“The cooperation with Aviation Links allows us to expand the service we provide buyers into the period after the apartment is delivered,” said Peleg Yariv, CEO and founder of Palmo Group.
“Alongside development, construction and support during the purchase process, the apartments will benefit from Aviation Links’ tourism and marketing systems and from the ongoing management of the joint management company.”
Aviation Links expands tourism real estate activity
The deal is part of Aviation Links’ growing push into tourism-related real estate outside Israel.
The publicly traded Israeli tourism group has expanded into property development through subsidiaries operating in Greece, Finland and Cyprus.
Its recent projects include MIFRAS, a development of luxury villas on the Greek island of Paros, and Arctic Panorama Resort & Spa in Finnish Lapland.
The group has also entered the Cyprus property market, including through the Lumina Mare residential development near the Larnaca coastline.
The Loutraki partnership extends that strategy by combining Aviation Links’ core tourism business with Palmo’s real estate development and property-management operations in Greece.