Saturday October 25, 2014 Search
Weather | Athens
19o C
12o C
News
Business
Comment
Life
Sports
Community
Survival Guide
Greek Edition
Lamda development raises offer for Europe’s largest urban plot [Update]

Paul Tugwell & Nikos Chrysoloras

A venture led by Lamda Development increased its initial offer by 25 percent for 100 percent of Hellenikon SA, topping an independent valuation, the Greek state-asset sales fund said.

Lamda, backed by China’s Fosun Group and Abu Dhabi-based property firm Al Maabar, submitted an offer of 915 million euros ($1.26 billion) for Elliniko, with plans to develop the former Athens Airport site, the Hellenic Republic Asset Development Fund (TAIPED) said in an e-mailed statement Wednesday. The 6.2 million square-meter site is more than three times the size of Monaco.

“A huge piece of urban land, which was abandoned for more than 10 years, will now become a source for growth for Athens,” Ioannis Emiris, the fund’s chief executive officer, said in a phone interview after the official announcement. “The benefit for Greece is not just the money from the sale of the old airport site, but the huge park of at least 200 hectares and the thousands of jobs that will be created,” he said.

In 2013, Greece saw its sixth year of a recession that has destroyed about a quarter of its economic output and sent the unemployment rate soaring to more than 27 percent. Revenue from a state asset sales program is also earmarked to cover part of the country’s funding needs in the coming years under the 240 billion-euro bailout from the euro area and the International Monetary Fund.

Lamda will pay 33 percent of the offered amount upon completion of the agreement, and the rest will be deferred over 10 years, according to the sales fund.

“The total investment, including construction, comes to 8 billion euros, which rises to 11 billion euros if we also add retail outlets and hotels that will be built on the site,” Odysseus Athanassiou, chief executive of Lamda Development said by phone. “About 2.5 billion euros will be invested in the first five years of the project, and we are going to create 50,000 jobs, while the deadline for the state to deliver all the relevant permits is two years,” he said.

“Only 250 hectares out of the 600 hectares of the site will be developed for commercial use, the rest will be covered by a metropolitan park, schools, roads and utilities, and, in this sense, we are actually paying 850 euros per square meter, which is twice the price of land in the wider area,” Athanassiou said.

Part of the proceeds from Elliniko should be directed toward creating green spaces in other parts of the Athens, the city’s mayor, George Kaminis, said in an interview Wednesday.

“We have perhaps the biggest free space in the whole of Europe right now to be taken care of and to create jobs,” he said. “What’s going to be built there must correspond to a balance of green spaces in Athens.”

TAIPED will deliver a fairness opinion on the improved financial bid and will decide within the coming days if a preferred bidder can be declared, according to Wednesday's statement. [Bloomberg]

ekathimerini.com , Thursday March 27, 2014 (10:10)  
TAIPED waits for green light from Eurostat
Trade deficit shrinks on big drop in imports
SMEs unable to claim subsidies
Taxes kept growing in second quarter
Athens, Nicosia satisfied by EU leaders´ stance toward Ankara
A reference in Friday’s European Council conclusions calling on Turkey to respect Cyprus’s sovereign rights left Athens and Nicosia content with the outcome of the European Union leaders’ su...
Suspended policeman chief suspect in cousin’s murder
A 27-year-old police officer who has been suspended from duty since 2013 for extortion, is being treated as the chief suspect in a murder committed in a suburb of Piraeus on Thursday. Police...
Inside News
BASKETBALL
A win is a win is a win for Olympiakos
A bad Olympiakos defeated a worse Laboral Kutxa 63-57 to make it two out of two in the Euroleague on Friday. In a game where the two teams had an overall field goal rate of about one in thre...
SOCCER
Panathinaikos snatches point at Eindhoven
Panathinaikos offered its fans a glimpse of its glorious past in European competitions snatching a draw at PSV Eindhoven, on an otherwise bad night for Greek soccer in the Europa League, as ...
Inside Sports
COMMENTARY
Tension for tension’s sake?
It is evident that Turkish President Recep Tayyip Erdogan feeds off tension. He would barely have achieved as much as he has – and prevailed – if he had not been so keen to confront a series...
EDITORIAL
Testing ground
The Regional Authority of Attica is a good testing ground for politicians who appear to thrive on accusations to prove whether they can actually solve major problems of a practical nature. T...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. A win is a win is a win for Olympiakos
2. TAIPED waits for green light from Eurostat
3. Trade deficit shrinks on big drop in imports
4. SMEs unable to claim subsidies
5. Taxes kept growing in second quarter
6. Thessaloniki Port expects 2014 to be record year
more news
Today
This Week
1. Woman killed in tram accident in Floisvo, south of Athens
2. Clocks to go back 1 hour on Sunday
3. Venizelos slams Turkey for 'flagrant violation of international law' off Cyprus
4. ECB vies for third time lucky in European stress tests
5. Cyprus GDP upgrade seen as boosting bailout exit plans
6. ECB bank assessment to show 6-billion-euro capital gap, Citi says
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Greece’s closed society is central to its current malaise
3. Greece must stick to reforms, says Schaeuble
4. At least 11 banks to fail European stress tests, three in Greece, report says
5. Cyprus to block Turkey's EU talks after EEZ violation
6. Samaras’s crumbling Greek exit lacks backing from economists
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.