BUSINESS

Blackstone buys 10 pct stake in Greek real estate developer Lamda

Private equity group Blackstone acquired a 10 percent stake in Greek real estate developer Lamda for 20.2 million euros ($28 million), the latest move by foreign funds warming to Greece's recovery prospects, Lamda said on Wednesday.

Lamda Development said seven investment funds managed by Blackstone-GSO Capital Partners bought 4.44 million of its voting shares at 4.55 euros each - a 3.8 percent discount to the stock's closing price of 4.73 euros on Wednesday.

Lamda was picked by Greece's privatization agency in March to develop a prime seaside property at the former Athens airport Hellenikon. Backed by China's Fosun and Abu Dhabi-based property firm Al Maabar, the firm was the sole bidder for the project.

The 7-billion-euro plan to develop Elliniko - a complex three times the size of Monaco - is one of Europe's most ambitious real estate projects and stands to be a major boost for a nation limping back to growth after nearly going bankrupt in the fallout from the global economic crisis. [Reuters]

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