BUSINESS

Lamda looking at 8 bln cost at Elliniko

ILIAS BELLOS

TAGS: Privatizations, Property, Business

Lamda Development estimates that the mammoth development project at Elliniko in southern Athens will require total investments of 7 billion euros over the next 25 years. For the first five years, the Lamda-led consortium has committed to implementing investments worth 1.5 billion euros by its own means or through cooperation or agreements with third parties.

After the first five years and up to the completion of the first 25, another 5.5 billion is estimated to be required, according to the listed company’s bulletin concerning the 650-million-euro share capital increase that is under way.

Given the price of 915 million euros due for the concession of the project to Lamda, through the acquisition of the Elliniko SA vehicle from state sell-off fund TAIPED, the sum of cash required for the completion of the project is seen reaching 8 billion euros.

The 25-year timetable includes the construction of an estimated 10,800 residential units, some of which will be located in two high-rise buildings of special architectural design. The plans also provide for around 1,000 rooms in three hotels, besides the integrated casino resort’s hotel.

The Elliniko blueprint further includes the construction of two shopping centers, museums, cultural installations, sports facilities and a multifunctional events venue with an observation tower, which will constitute a high-rise building of special design, plus an aquarium and a medical center. There will be various other commercial hubs too, including an office tower that will also serve other purposes on Vouliagmenis Avenue.

A significant section of the Elliniko plot will be covered by a metropolitan park, which will not only include green spaces but also other infrastructure works.

The total value expected to be generated from the investments through the utilization of the property is seen at 58 percent from home sales, 8 percent from the shopping centers, 6 percent from the hotels and 28 percent from the operation or sale of other properties, including the calculation of future revenues from the casino complex.

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