Elliniko: work is in full swing

In line with the approved timetable, within the budget for the first five-year phase of the Elliniko redevelopment project, Lamda, highly satisfied with property sales and demand, says it will announce a contractor by the end of March to undertake the first major infrastructure package worth €250-300 million .

As of the end of 2021, financial proposals have been received from ABAX, AKTOR-Archirodon, GEK TERNA and the Intrakat-Mytilineos scheme (and Cypriot-owned Wade Adams).

The first projects concern the main road network, the laying of one kilometer of Poseidon Avenue underground (to begin at the end of 2022), port works and all associated networks, redevelopment of the embankment, sewage pumping pipelines (flood protection) and telecommunications networks.

According to the company, bulldozers and cranes will enter the territory in April. In addition, the foundation of the famous green skyscraper will be laid within a year, and all works will be completed within five years (three residential complexes: 200 apartments in a skyscraper, 27 luxury villas and 100 very expensive two- and three-story mansions). The company is leaving open the possibility of building another 1,000 units within the first 5 years as demand increases. One of the main goals, the construction of 10,000 residential units within 15 years from today (1 million square meters), according to Lamda, is achievable.

Contract price

General Director of the company Odysseas Athanasiou, speaking at a briefing, answered the question of journalists about whether Elliniko’s business model is changing in terms of land management and the issue of price. “Design does not change,” a clear answer was given, “In fact, the agreement that was ratified by parliament in September 2016 was concluded under SYRIZA. Secondly, we provided a master plan that defines quite precisely what we should build, it has been reviewed by the State Council and also ratified by Parliament. In the first five years, we have to spend 1.5 billion. If we do not spend it on the projects envisaged by the master plan, then we will have to pay dearly.”

Mr. Athanasiou noted that the management project for “high-end” villas (by his admission) in the coastal area is under the responsibility of Lamda. The total cost of the villas in the coming period will be 182 million euros, of which the company will receive 50% after the contracts are signed.

It should be noted, however, that the initial estimate of the commercial value of the 6.2 million square meters of real estate and the minimum price that the state should require was based on the assumption that the investor is implementing a complete urban and residential renovation project, including buildings, infrastructure, public spaces and green spaces, rather than selling plots of land, as is the case now.

In response to a question from Eph.Syn. Regarding the letter from an independent expert to the prosecutor’s office of the State Tax Service, which stated that the price for the state should be at least 2.4 times higher (article of February 14 “How much the state loses on Elliniko”), company sources said that “this is not credible, because another document mentioned a price of 1 billion euros.”

“We don’t have capital problems, as some write,” Athanasiou stressed, “we raised 650 million euros in December 2019, 320 million in July 2020 through bonds. In addition, we have an agreement with Eurobank and Piraeus, signed almost for 1.5 billion, this is one of the few projects that is funded even before it starts, and I do not take into account sales that have already begun.

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