The signing of definitive contracts and preliminary purchase and sale agreements for the sale of five different land plots in the Urban Development Area “A-P3” within the project in Elliniko (near CommercialHub and The Ellinikon Mall), with a total maximum allowable buildable area of approximately 51k. m² has been announced. ELLINIKO MAE, a subsidiary of LAMDA Development.
The price is four times the accounting cost
The total sale price of the 5 properties amounts to approximately 106 million euros, which corresponds to an average price of approximately 2,100 euros per m2. of buildable area. The price is four times the accounting cost.
The total value of the five specific plots of land on the Company’s books (acquisition cost including the corresponding infrastructure cost) on 12/31/2023 it amounted to approximately 27 million euros, or 531 euros per m2.
O LAMDA Development Group It is expected, upon completion of all transactions, to recognize an accounting profit before taxes of approximately 76 million euros (including transaction costs), further increasing the profitability and net cash flows of the first phase of the project.
The transaction in question highlights another way of creating surplus value in Hellinikon’s work, which is collected by the company and, by extension, by its shareholders, is highlighted in the statement.
Zero debt in the Hellinikon project – A notable international case for similar developments
Furthermore, it is noted that the Hellinikon project remains zero-loan, which is a prominent case internationally for similar developments.
The buyers, who emerge after a competitive process, assume the cost of each project, as well as the obligation to complete the residential projects in their entirety.
The buyers in question are the international groups Brook Lane Capital and TENBRINKE and the Greek Hellenic Ergon and Daedalus Development, which will help develop and accelerate the pace of completion of the Helliniko redevelopment project.
The total investment in these projects is estimated at at least 300 million euros.
LAMDA Development CEO Odysseas Athanasiou said: “The sales result highlights the significant goodwill that has already been created by the implementation of the project to date, which will continue at an increasing pace as the development of the wider project progresses in Greece. The total balance of the residential developments is approximately 1 million sqm.”
AMP Source