PRIVATIZATION

Completion of Elliniko deal

Lamda Development to finish off the transaction next Friday with the payment of €300 mln

completion-of-elliniko-deal

The transfer of 100% of Elliniko SA to Lamda Development will be completed next Friday, June 25. The contractor announced on Wednesday it will pay the first tranche of the total price of 915 million euros, amounting to €300 million, and deliver a letter of guarantee for €347 million to the state asset utilization fund (TAIPED).

Wednesday’s announcement by the Athens-listed construction company follows the latest favorable verdict by the Council of State, settling the last pending issue before the legal maturing of the development project at the plot of the old Athens airport.

Lamda had already decided to conclude the economic aspect of the transaction without making use of the clause on the casino, allowing it not to pay until the process for a new casino on the plot has advanced.

Regarding the delays seen on the casino front, a Lamda representative on Wednesday expressed his optimism that any changes made within operating consortium “Inspire Athens” (65% owned by US group Mohegan and 35% by GEK Terna), which was the preferred bidder through the state tender, will mature quickly with the project set to start possibly by early fall.

“For seven years we believed that our vision could become reality. Today sees the beginning of the implementation of all that we have planned for with patience and faith, and mainly with passion and focus on the target all this time,” stated Lamda chief executive officer Odisseas Athanasiou.

“We have ready architecture plans in place for the first stage of the project that we will immediately start presenting and for which we have secured financing,” added Athanasiou.

In the first five years of the 15-year period of investment development, Lamda will not only implement projects and infrastructures of public interest concerning also the metropolitan park, but it will also develop a seaside luxury hotel of some 170 rooms, an aquarium and a maritime research center, part of the Agios Kosmas marina neighborhood, plus the upgrading of the marina, a new mall and a residential tower etc.