Lamda Development announces reduced borrowing needs; second installment to state paid

Lamda Development, the concessionaire of the landmark Helleniko privatization in coastal southeast Athens, on Friday announced that it has updated primary conditions related to its syndicated borrowing contract with local lenders Eurobank, Piraeus and Alpha Bank.

The ATHEX-listed developer said it will save 173 million euros from updates, essentially a reduction in the amount of financing that the company requires, down to 944 million euros from an initial target of 1.117 billion euros.

Lamda said it has reduced borrowing needs for the residential and infrastructure portion of the urban development plan, from 394 million euros to 120 million euros.

Conversely, the land developer said the projected budget to complete the Vouliagmenis Mall and Riviera Galleria projects was raised to 575 million euros, up from 515 million euros. Similarly, Lamda said covering VAT remittances is now budgeted at 249 million euros, up from 205 million euros.

In a related development, both Lamda Develompent and the Hellenic Republic Asset Development Fund (HRADF), the country’s privatization agency, announced that the former’s subsidiary, Hellinikon Global, has paid a second installment of 166.65 million euros towards the latter, as part of the concession contract, by which the private company acquires 100 percent of the share capital of Helleniko S.A.

The second installment means that 51 percent of the total sum foreseen, 915 million euros, has been covered.

Lamda now bills the entire project, valued at up to eight billion euros, one of biggest real estate developments in Europe, as “The Ellinikon”.