The signing of definitive contracts and preliminary purchase and sale agreements for the sale of five different plots of land in Ellinikon (near CommercialHub and The Ellinikon Mall), with a total maximum allowable buildable area of approximately 51k. sq.m. was announced by ELLINIKO MAE, a subsidiary of LAMDA Development.
The price is four times the accounting cost
The total price of the sale of the 5 properties amounts to approximately 106 million euros, which corresponds to an average price of approximately 2,100 euros per sq.m. buildable area. The price is four times the accounting cost.
The total value of the specific five plots in the Company’s books (acquisition cost including the corresponding infrastructure cost) on 31.12.2023 amounted to approximately 27 million euros, or 531 euros per sq.m.
LAMDA Development Group is expected, after the completion of all transactions, to recognize an accounting profit before taxes, amounting to approximately 76 million euros (including transaction costs), further enhancing the profitability and net cash flows of the first phase of the project.
The transaction highlights yet another way of creating value in the Ellinikon project, which the company and by extension its shareholders benefit, the announcement pointed out.
Zero borrowing in the Ellinikon project – An outstanding case at the international level for similar developments
It is also noted that the Ellinikon project continues with zero borrowing, which is a prominent case at the international level for similar developments.
The buyers, who emerged after a competitive process, assume the cost of each development, as well as the obligation to complete the residential developments in their entirety.
The buyers are the international groups Brook Lane Capital and TENBRINKE and the Greek Hellenic Ergon and Daedalus Development, which will help to develop and accelerate the pace of completion of the redevelopment project in Ellinikon.
The total investment for these developments is estimated to reach at least 300 million euros.
The managing director of LAMDA Development, Odysseas Athanasiou, said in this regard: “The result of the sales highlights the significant value that has already been created by the implementation of the project so far, which will continue at an increasing rate as the development of the wider project progresses. The total balance of residential developments amounts to approximately 1 million sq.m.”
