Tuesday October 21, 2014 Search
Weather | Athens
24o C
11o 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)  
Tax debts to Greek state exceed 70 billion euros
Greek 2013 budget gap revised down to 1.8 pct/GDP
Greece said to seek tailor-made plan for bailout exit
Greek current account surplus widens in August
Inmate injured in Patra prison yard brawl
A 45-year-old Nigerian man was being treated at a hospital in the western port city of Patra on Tuesday after being stabbed in the leg during a brawl between a group of inmates in the exerci...
SDOE to probe Proton Bank loan to Thessaloniki businessman
A prosecutor in charge of investigating corruption claims in Thessaloniki, Argyris Dimopoulos, has ordered a preliminary probe a large loan issued by Proton Bank before the lender was split ...
Inside News
BASKETBALL
PAOK fans stop coach Markopoulos´s move to Olympiakos
Olympiakos is once again in the lookout for a new coach after the refusal of PAOK to release Soulis Markopoulos, while Panathinaikos defeated Kolossos on Rhodes on Monday to become the only ...
BASKETBALL
Reds lose to Nea Kifissia, search for new coach
Nea Kifissia recorded the biggest win of its short history in the top flight defeating Olympiakos 68-67 on Sunday, in a Basket League weekend marred by the abandonment of the Thessaloniki de...
Inside Sports
INTERVIEW
The past, present and future of the Greek debt crisis
For a decade, until mid-2012, Josef Ackermann was the CEO at Deutsche Bank. It was a position that earned him the nickname “shadow chancellor” of Germany and allowed him to play a decisive r...
COMMENTARY
Self-opposing coalition
Even though a number of polls see the total percentage of the two ruling parties trailing that of SYRIZA, New Democracy and PASOK are still in government and the leftists in opposition. This...
Inside Comment
SPONSORED LINK: FinanzNachrichten.de
SPONSORED LINK: BestPrice.gr
 RECENT NEWS
1. Tax debts to Greek state exceed 70 billion euros
2. Greek 2013 budget gap revised down to 1.8 pct/GDP
3. Greece said to seek tailor-made plan for bailout exit
4. Greek current account surplus widens in August
5. Inmate injured in Patra prison yard brawl
6. SDOE to probe Proton Bank loan to Thessaloniki businessman
more news
Today
This Week
1. The past, present and future of the Greek debt crisis
2. Self-opposing coalition
3. Gang importing heroin into Greece busted
4. Gutsy rectors
5. Applications for heating oil subsidy set to start
6. SDOE to probe Proton Bank loan to Thessaloniki businessman
Today
This Week
1. Possible third figure in Amphipolis mosaic may be uncovered shortly
2. Greece to contribute 1 mln towards Gaza reconstruction
3. Greece nearing bailout exit, says gov't spokesperson after IMF talks
4. Istanbul skyscraper casts shadow over Greece's banking ambitions
5. Coalition shooting itself in the foot
6. GPO poll gives SYRIZA clear lead over New Democracy
   Find us ...
  ... on
Twitter
     ... on Facebook   
About us  |  Subscriptions  |  Advertising  |  Contact us  |  Athens Plus  |  RSS  |   
Copyright © 2014, H KAΘHMEPINH All Rights Reserved.