Lamda Development is expected to proceed with share capital increases in its subsidiaries with shopping centers as well as with agreements for bank financing in order to begin the construction of The Ellinikon Mall and Riviera Galleria, in The Ellinikon.
The two shopping centers together are among the largest and by extension among the most expensive developments planned at the former airport, with Lamda advancing without third party cooperation as it was the case with the mixed-use tower, or the hotels on the beachfront.
It is estimated that bank borrowing will exceed 800 million euros, as according to the data published by the company, the construction cost (Building Capex) for The Ellinikon Mall and Riviera Galleria is estimated at 656 million euros, the cost of land and infrastructure is estimated at 263 million and the remaining costs (financing, marketing, etc.) at 133 million euros. The total cost based on the above is estimated at 1.052 billion euros.
According to Lamda, the amount of 1.052 billion euros will be secured as follows: 271 million from equity, 575 million from bank loans and 206 million from other sources of financing.
It should be noted that the aforementioned figures appear in the company’s presentations for over a year and this means that the final numbers are likely to be different (higher). Lamda had also included the listing of Lamda Malls on the Stock Exchange, a move not visible in the immediate future.
Procedures
According to sources, the bank financing for the two shopping centers in Ellinikon has been agreed with Eurobank, Piraeus, Alpha and Attica Bank and is expected to be announced by the end of the year, after the necessary procedures have been completed.
In this context, Lamda Development proceeded in November with share capital increases in the subsidiaries with the malls totaling 237.3 million euros. This was preceded by smaller capital injections in the same subsidiaries in the third quarter of the year as a condition for participating with equity in the construction of the two shopping centers.
Leases
Lamda management is advancing with the construction of the two shopping malls, taking into account the interest expressed in their lease. By the end of October 2024, Heads of Terms (HoT) had been agreed with tenants for 63% of the Total Gross Lettable Area (GLA) at The Ellinikon Mall and 69% of the GLA at Riviera Galleria, at higher prices compared to the shopping malls in operation, as reported by the company.
It is noted that The Ellinikon Mall will be more than five times larger than Riviera Galleria (and twice as large as The Mall Athens). The former will have an available space for lease of 100 thousand sq m and the latter 19 thousand sq m.
