1.3 billion premium on planned residential developments totaling 1 million square meters, based on construction area, “reveals” interest in first lots in greek that provides to third parties Lamda Development.
In particular, as analysed by Lamda’s managing director, Odysseas Athanasiou, during yesterday’s annual general meeting, a tender is underway for the sale of 5 plots of land with the potential for a total buildable area of 50 thousand square metres for residential use, and the interest expressed sets the price per m2 at 2,100 euros, whereas the price per m2 is stated in the company’s books at 770 euros.
If we calculate that 1 million m2 remains to be sold in Elliniko. of buildable surface for residential developments and multiplying by the difference between the book price and the sales price (1,330 euros per m2) the hidden added value reaches the aforementioned 1.3 billion. euro.
According to Athanasiou, the competition for the aforementioned 5 lots will be concluded by the end of July and, as he mentioned, “since we have sold more than 100,000 m2 in 6 months, it is easy to see the possibilities that exist”.
It is recalled that land in Elliniko is also at the disposal of the shipowner and owner of a large number of properties, Giorgos Prokopiou. Mr. Prokopiou will purchase 4 building blocks from Elliniko SA (a subsidiary of Lamda), gaining the possibility of building 86,000 m2.
More generally, housing sales in Elliniko are progressing at a satisfactory pace. In the Little Athens district (5 residential developments – 206 apartments) whose construction has started with a view to completion by the end of 2026, 65% of the apartments have already been sold and, as Lamda management said yesterday, if the sales executives had time, they would have 100% available.
In the next period, however, actions to promote Ellinikos properties abroad (America, Asia and Europe) will be intensified and, as estimated, the interest of foreigners in purchasing a residence will grow.
Elliniko will also have houses for rent. These developments will be carried out by a company owned by Lamda’s main shareholder Spyros Latsis, in conjunction with Lamda (which will hold a 20% stake in the joint venture).
Explaining the rationale behind this arrangement, Mr Athanasiou said that it is a risk-sharing arrangement, as it will take a few years for these residences to be rented out and generate income. Studies have been initiated and construction will begin in late 2025 or early 2026. If this project goes well, Lamda could pursue other similar projects to ensure recurring revenue.
The Ellinikon shopping mall
The head of Lamda, responding to related questions, stated that the office’s developments were initially planned for the second phase of Hellinikon. However, an attempt was made to include some in the first phase as well. As he said, there is interest, but not at attractive prices. The relevant exercise will also take place in 2025.
The above results in the change in the design of the large shopping center, Ellinikon Mall (formerly Vouliagmenis Mall), which will eventually not include office spaces. It is under renovation and the commercial spaces for lease will exceed 100 thousand m². (from 90 thousand m²).
It is noted that the demand for spaces for rent exceeds 180% of the available area of Elnikon Mall and for 70% there are initial agreements. Based on the schedule, it will be completed in the 4th quarter of 2027.
Lamda’s managing director also responded yesterday to shareholders’ comments on the stock’s trajectory, attributing its poor performance, among other things, to the lack of placements by foreign investment funds, which is what happens with the vast majority of shares on the Greek stock market.
Regarding the introduction of Lamda Malls, he reiterated that this will be done when conditions allow, noting that there is no pressure for this change.
Mr. Athanasiou also stressed that this is not a capital increase. Lamda has around 600 million euros in treasury and Elliniko’s revenues reached 700 million euros. So far, Elliniko is self-financing, without using the loan funds it secured.