Deal for school campus on southern Athens’ Elliniko plot flounders
A deal between Prodea Investments, Lamda Development and Costeas-Geitonas School (CGS) for the construction of a new campus on the former airport plot at Elliniko on the capital’s southern coast appears to be on the rocks, as sources have indicated that Prodea is unlikely to carry on with the plan.
According to the sources that spoke to Kathimerini, the deal has floundered on the skyrocketing cost of construction since the memorandum of cooperation between the three parties was signed in June 2022.
The higher cost of implementing the investment effectively means that Prodea would see its yields fall below the 7% threshold demanded by real estate investment trusts under the relevant regulatory framework.
Market sources said that even if the plot were to be ceded without cost, the project would still not be rendered profitable enough for the investors, meaning that other sources of funding would have to be sought.
The Prodea-CGS scheme won a tender carried out by Lambda Development for the campus, beating other major Greek educational institutions, including Moraitis, according to sources. The deal was a much more lucrative prospect at the time, however, as the cost of constructing a building in 2022 was an estimated 70-80% lower than it is now.
The plan was for an area of 32,000 square meters that would give CGS significant room for expansion from its current campus of 67,000 square meters, which is host to some 1,900 students and 600 staff. The new campus had been slated to be ready within 2026.
