Greece's Lamda Development, the developer of Ellinikon, an €8 bn urban regeneration project in the Athens agglomeration, has sold five land plots within the site destined for residential use for €106 mln.
The plots were divested by the company subsidiary Hellinikon and comprise a total maximum allowed buildable are of 51 km2.
The buyers, which resulted from a tender process, will undertake the cost of each development as well as the obligation to complete the residential developments in their entirety.
The buyers comprise international firms Brook Lane Capital and Tenbrinke, as well as the Greek companies Hellenic Ergon and Daedalus Development. The total investment for these developments is estimated to reach at least €300 mln.
The €106 mln deal volume represents an average price of €2,100 per buildable area m2. The transaction consideration is four times the amount of the book value of the plots.
Lamda said that the sales would strengthen the profitability as well as the net cash flow generation during Phase 1 of the project.
Also notable is the fact that the Ellinikon project continues to progress while maintaining zero bank borrowing, which Lamda says 'represents a unique case at an international level among similar developments'.
Lamda CEO, Odisseas Athanasiou said: 'The result of the sales highlights the significant value that has already been created by the project implementation so far, which will continue at an accelerated pace as the development of the wider Ellinikon project progresses. The total remaining residential developments amount to approximately 1 million m2.'
AXIA Ventures Group acted as exclusive financial advisor and Papapolitis & Papapolitis as legal advisor to Hellinikon.
