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Greek auditor blocks major state property sale -sources

ATHENS, Sept 10 (Reuters) - Greek auditors have blocked the $1.2 billion sale of a prime seaside property at the abandoned Athens airport Hellenikon, sources said on Wednesday, the country's biggest privatisation deal since the financial crisis. In March, the country's privatisation agency HRADF picked Lamda Development, backed by China's Fosun and Abu Dhabi-based property firm Al Maabar, to turn the 620-hectare wasteland into a glitzy coastal resort. The consortium was the sole bidder and won a 99-year lease for the area which spans three times the size of Monaco after offering 915 million euros. A court official told Reuters on condition of anonymity that the auditor had blocked the sale because the tender terms violated the principles of transparency and equal treatment. The privatisation agency will appeal the decision, an official at HRADF (Hellenic Republic Asset Development Fund) told Reuters. The Hellenikon project is seen helping Greece meet privatisation targets set by the European Union and the International Monetary Fund as part of a 240 billion euro bailout. Athens wants to raise 22 billion euros by 2020. The project is also expected to boost the economy, which is seen growing moderately this year after a six-year recession. But the sale could take up to two years to complete due to a series of approvals needed, including the auditor's green light. The auditor has challenged previous privatisations, including the sale of 28 state assets to two Athens-based firm but the deal was finally cleared. Greece has lowered its privatisation targets several times because of red tape and a lack of investor appetite after teetering near bankruptcy. Athens now aims to raise 1.5 billion euros from asset sales this year, down from an initial target of 3.6 billion euros. (1 US dollar = 0.7733 euro) (Reporting by Angeliki Koutantou; editing by David Clarke)