Lamda secures funds needed for Elliniko

Lamda Development has signed the necessary contracts to complete all transactions concerning the financing scheme for the Elliniko project’s first investment period, totaling 2.5 billion euros.

The funding scheme was concluded on Wednesday with the signing of the updated local contracts, worth €1.16 billion, with Eurobank and Piraeus Bank.

“The adjustment is the natural fruit of the evolution and maturing of the company’s planning regarding the projects and investments provided for the first five years,” read the Lamda statement.

Company sources explained to Kathimerini that the adjustment of the original agreement’s terms mainly concerns the shift of the funding emphasis toward partial projects following the signing of consortium agreements such as that with TEMES for the Elliniko hotels, which have contained the financing requirements.

Therefore the sum of total bank borrowing has dropped to €1.16 billion, against the original amount of €1.18 billion. The construction company announced that the loan has a floating rate. This sum incorporates the €205 million concerning the value-added tax costs. This borrowing has to do with the funding of infrastructure and other developments in the first five years of the project, totaling €542 million, and the financing of the commercial developments on Vouliagmenis Avenue (the planned Vouliagmenis Mall) and inside the Agios Kosmas Marina (Marina Galleria), adding up to €622 million.

The contract has also updated the sum of the letters of guarantee to be issued at €347 million, to be submitted to state asset utilization fund TAIPED as collateral for the credit of the Elliniko transaction, and at €175 million for the guarantee toward the fulfillment of obligations.

According to Lamda’s business plan, €1 billion of the funding for the €2.5 billion projects will come through bank borrowing, while the rest will come from own capital: Lamda has already implemented a €650 million share capital increase, while last summer it also issued a bond of €320 million.

Besides the commercial developments and the hospitality projects, Lamda is also proceeding with plans for the residential developments, for which strong interest has already been expressed by potential buyers, according to source.

Source: ekathimerini.com