Lamda says ‘unexpected changes’ to Elliniko deal undermine investment

Greece’s Lamda Development, which is leading a consortium of foreign investors that have signed a deal to turn Athens’s former airport complex into one of Europe’s biggest seaside resorts, said that “unexpected changes in the contractual agreed terms” are jeopardizing the project.

In a statement made public Friday, Lamda said a recent decision by the country’s archaeological council (KAS) to declare more than 30 hectares of the site at Elliniko, south of Athens, of archaeological interest is affecting development plans while increasing red tape.

The Greek developer also complained about a decision to reduce the maximum height of buildings on the plot, from 170-200 meter to about 150 meters. Lamda said tall buildings were part of the project’s landmark elements.

“The sum of these changes and inconsistencies, as well as the habit of constantly creating fresh obstacles, naturally undermines the necessary climate of trust,” Lamda said.

“At the same time, it raises serious questions about the ability to materialize the investment, the necessity of which has been declared in the most official manner by the Greek state,” it said.

The statement from Lamda came a day after Canadian mining company Eldorado Gold announced that it is taking legal action against Greece for its failure to issue the company permits needed for its Skouries project.