Image: The project is planned for the Itanos locality

Minoan Group has secured £2m (US$3.1m, EUR2.5m) of funding towards its proposed Greek resort development after entering into a new agreement with The Candia Investment Corporation.

The Glasgow, UK-based group is planning a major new resort destination spanning more than 6,000 acres (2,428 hectares) within the locality of Itanos on the island of Crete.

In exchange for the investment, Candia has acquired a 10 per cent stake in the project. The cash will be released in tranches from August, with the final payment due in September 2013.

The deal also allows the investment corporation to purchase a further 25 per cent stake for £12.5m during an agreed period after environmental approval for the project is received.

Minoan Group chair Christopher Egleton said: "Shareholders will be aware of the company's stated intention to proceed with its project in Crete by means of entering into desirable joint venture arrangements.

"As well as establishing a value of £20m for the project as it stands today, this agreement releases resources for the expansion of the group's Travel and Leisure Division."

Earlier this month, Minoan Group said it remained confident about the future of its resort plans, despite the process running into delays due to ongoing political uncertainty.

Spas and wellness centres are expected to form part of the development, while the group has said Six Senses Resorts and Spas "intends to join the project" as the operator of one of two flagship hotels.

Details: www.minoangroup.com

Details: www.minoangroup.com (Crete Project Details)

Image: Marc Ryckaert