Vovos may sue for damages

Real estate developer Babis Vovos said yesterday the company may seek compensation from the City of Athens if a Greek court rules against the construction of its biggest mall project. Shares in the company plunged 29.8 percent to 3.43 euros on the Athens bourse yesterday, bringing losses in the last month to some 17 percent. The benchmark general index retreated 1.17 percent. «Management may seek losses… that will exceed 280 million euros, not including the construction cost of the project,» Vovos said in a bourse filing. According to local media, Greece’s highest court decided last week that legal clauses allowing Vovos to build a shopping mall in the Votanikos district could be in breach of Greek and European law. It could be months before the court’s decision is officially announced. Vovos planned to complete the mall by the end of the year, expecting annual rental income of about 35 million euros. A group of 130 residents challenged the project on environmental grounds and construction was halted in December.

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