On July 25, 2024, Hellinikon S.M.S.A. — a subsidiary of LAMDA Development S.A. — signed share purchase agreements and preliminary notarial deeds for the sale of five land plots covering a total maximum buildable area of approximately 51,000 square meters in the A-U3 urban development area of The Ellinikon redevelopment initiative, located on the grounds of the former Ellinikon International Airport in Athens.
The total consideration for the sale of the five land plots is reported as being approximately EUR 106 million, for an average price of about EUR 2,100 per buildable square meter.
According to LAMDA, “the transaction consideration is four times the amount of the book value of the plots,” which, according to LAMDA, means that the “LAMDA Development Group is expected to recognize, upon completion of said transactions, an accounting profit before taxes of approximately EUR 76 million (including transaction expenses), hence further strengthening the profitability as well as the net cash flow generation during Phase 1 of the project.”
The buyers — Brook Lane Capital and Tenbrinke, along with Greek companies Hellenic Ergon SA and Daedalus Development — were determined via a tender process, and will undertake the cost of each development as well as the obligation to complete the residential developments in their entirety. According to LAMDA, this “will further contribute towards the development as well as in the acceleration of the pace of completion of the Ellinikon urban regeneration project.”
The total investment for the developments is estimated to reach at least EUR 300 million.
AXIA Ventures Group Ltd acted as exclusive financial advisor and Papapolitis & Papapolitis acted as legal advisor to Hellinikon S.M.S.A. on the transaction. The Lambadarios Law Firm advised Brook Lane Capital on the deal.
