With prices from 9,000 to 32,000 euros per sq.m. the houses in Elliniko – The projects and the schedule

The managing director, Mr. Odysseas Athanasiou, analyzed the entire schedule and progress of the projects in Elliniko

STEFANIA SOUKI - JUNE 22, 2023 - 7:10

With prices from 9,000 euros per square meter for the houses in the two-story complexes, up to 32,000 euros for the penthouses of the residential skyscraper, sales have been made to date in the first residential units of the large investment in the lands of the former Hellinikon airport by Lamda Development .

The success of the sales of the houses and the plots in the first three residential units emerge as a key point for the project, whose financial needs for 2023, as Mr. Odysseas Athanasiou, managing director, said yesterday from the floor of the general assembly of Lamda , " are reduced due to the excellent pre-sales, while Eurobank, Piraeus and Alpha banks have supported the project financially , contrary to what can be said that the banks have abandoned us.

In 2023, we don't need loan funds and in addition we need lower borrowing. In 2024, the borrowing needed for the project is more "temporary" and concerns VAT payments that are returned. For the financing, we divide Elliniko into two distinct parts: The individual developments and the shopping centers that go under the umbrella of Lamda Malls and for which there may be some additional borrowing that will still go to Lamda Malls. Overall, loanable funds will be needed from 2025 onwards."

Precisely the very good course of house sales are bringing forward the plans for about 1,000 new houses, which will be put up for sale at market prices in the wider area for new houses, which can now reach from 7,000 euros per sq.m. or even 15,000 euros per sq.m. . Regarding existing developments in residential projects, pre-sales currently amount to 1.2 billion euros, mainly to the Greek public.

In particular, of the 170 apartments of the skyscraper, 96% of the buyers are Greeks and the remaining 4% foreigners , with prices from 10,000 euros to 32,000 euros per sq.m. for the penthouse. In the 110 apartments of the two-story complexes, more than 90% are Greek buyers, with prices from 9,000 - 14,000 euros per sq.m., while for the 28 plots with the beach front villas, the buyers are 50% - 50%.

"We are bringing another 1,000 apartments to the first phase of the project, in the form of a 50-meter tower near the beach, which we will start showing to interested buyers towards the end of the month. Also, we have other developments near L. Alimos and also a little above Posidonos .'

The total will be close to 1,500 homes in phase 1 of the first five years of investment, including homes from Lamda's joint ventures (see TEMES, Orilina, Brook Lane). Indicatively, about 50 residences are included in the Mixed-Use Tower, which will be built in collaboration with the investment firm Brook Lane and will also include a hotel with the Marriott group brand.

Greek: What has happened so far

Mr. Athanasiou went back in time and characterized the five years 2014-2019 as the most difficult, which "created the feeling in the public that the investment will never be made, something that exists even now". In addition, he spoke of secured funding, while the staff has more than tripled during 2020 – 2023 with 657 employees now, and the prospect of increasing to over 750 in the next 1 – 1.5 years. " 22% of those in the company are Greeks living abroad who came back ."

In this phase, the architectural design of all emblematic buildings (Residential Tower, shopping centers, etc.) has been completed or is in the final stage, with the aim that investments in Elliniko will be a point of reference for the country in 2026. The projects for the country's largest shopping center, the Vouliagmenis Mall , will start in 2024. Indicatively, within the next two months, the contractors who will take over the park, the Riviera Galleria shopping center, the sports fields and the Mixed-Use Tower in a joint venture with the investment company Brooklane will be announced .

By the end of the year, several other projects will have started, such as the mall in Vouliagmenis, the Riviera Galleria , the TEMES hotel and the branded residences, the villas, the shaping of the beach. The sports facilities will be ready by the end of 2024 to the beginning of 2025, while the green spaces will be completed in the beginning of 2026.

Work progress

For the Residential Tower (Bouygues – INTRAKAT), according to Mr. Athanasiou, the works are ahead of schedule. It is a project that has three years ahead of it, however the foundation is largely completed, which is also the most difficult part of such a project, and at the end of the year the second floor at 21 meters will be visible. The completion of the project is placed in the first quarter of 2026 .

For the two-story residential buildings behind the villas, the demolition of the pre-existing facilities has been completed, before the end of the year we will see the building developments with a completion horizon also in the first quarter of 2026. " All the houses have been sold and the contracts will start to are signed next month ", added Mr. Athanasiou.

In total, the pre-sales of residential projects (skyscraper, condos, villas) amount to 1.2 billion euros and exceeds 1.4 billion euros , if the values ​​of the plots that have been pre-sold are added. "The financial terms we are signing are beyond all expectations and all costs have been compensated. Especially in terms of construction costs, the project is favored as a real estate project, which as an industry is an optimal investment hedge against inflation.

As for the risks of further price increases in the future, it has locked in its construction costs, as well as infrastructure. In terms of rising interest rates, sales prices are more than covering cost increases."

Infrastructure and disabled people

In the other projects under construction, especially in infrastructure, on Poseidonos Avenue, excavations have been completed for over 50%, 1/4 has been concreted with the aim of being completed at the end of 2025. The disinfection works (5.5 km pipeline for fuel and soil disinfection from kerosene, oils, etc.) are completed this summer .

The flood defense of the Trahonon stream is being created from scratch and 40% of the excavation work has been completed. In addition, 3,000 trees are being transplanted. The disabled building will open in September 2023, ahead of schedule."

SPV for offices

For the office spaces and following the decision of the Piraeus and Eurobank banks to stay out, compared to the original plan to include their offices within the area, the plan, as has been announced, is to finally create an entity, where plots of land around the 100,000 sq.m., which will be completed by the lands where Eurobank was to be housed.

All of the office spaces that will be developed in the Business Center of Vouliagmeni Avenue ( Commercial Hub ) will include the Special Purpose Vehicle (SPV ) that Lamda will establish, seeking an agreement either with one investor or with several. " There is strong interest ," commented Mr. Athanasiou.

Mr. Athanasiou also referred to the activities of the shopping centers both for the new projects of Ellinikos, as well as for the imminent introduction of Lamda Malls to the Stock Exchange, but also the marinas of the group, where "there is excessive demand, with 100% occupancy . " The capacity at Flisvos Marina is 310 berths and 337 at Agios Kosmas, with further investments planned to accommodate larger vessels by 2026. We have tendered for Corfu Marina and in about 3 months we will know if we will take it over, increasing the our portfolio".

In addition, the company has also invested in the very critical energy sector with the acquisition in the first phase of 20% of R Energy 1 Holding , "given the great needs of Ellinikos". As for the new company Lamda Finance , it will primarily be a financing mechanism, a "vehicle that will redirect cash to the project."

For his part, the outgoing chairman of the board of directors, Mr. Tasos Giannitsis (since Mr. Stefanos Kotsolis was nominated as the new chairman), referred to the difficult course and challenges of the project to date, adding that "the next milestone is the completion of the first phase of the works which requires a lot of energy, consideration and time. I wish you the best in the great journey ahead."

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