Lamda sells five more plots at Elliniko
New residential development investments, totaling 300 million euros, are expected at Elliniko, following the completion of the sale of five plots, totaling 51,000 square meters, by Lamda Development. The buyers are four real estate investment and development groups: Brook Lane Capital, the Dutch Ten Brinke as well as Greek groups Hellenic Ergon and Daedalus Development.
The total purchase cost of the plots amounted to €106 million, or approximately €2,100/sq.m., allowing Lamda to record a net profit of €76 million (including transaction costs), as the acquisition cost was approximately €27 million (€531/sq.m).
As the listed company stated in an announcement, this sale will further enhance the profitability and net cash flows of the first phase of Elliniko. The specific plots are located near the commercial hub of Elliniko and the area where the Ellinikon Mall shopping center will be built.
By the end of the year, Lamda aspires to have sold plots of land totaling 80,000 sq.m., bringing in €200 million in revenue. As company executives have stated, these properties were to be developed in a later phase, i.e. after the first five years of the property’s development. However, they were ultimately chosen to be sold at this juncture, which according to Lamda’s management, reduces the investment risk, as the original plan envisaged the development of these plots by the company itself.
On the other hand, it is clear that the additional revenues that will arise at this time will cover the increased financing needs of the projects that have begun to develop in Elliniko, especially from the third quarter of the year onwards, when construction will begin and other properties, such as the Riviera Galleria shopping center, which was recently awarded to the Metlen group.
Based on a recent report by Axia Research, during the period 2024-2026 Lamda is estimated to collect revenues totaling €3.13 billion, of which €685.9 million this year, €1.04 billion in 2025 and another €1.06 billion in 2026. In total, until 2028, Elliniko will bring the listed company a total revenue of €3.75 billion. In the years to come, and especially from 2028 onwards, the bulk of the works on the property will concern the development of individual residential zones.
