The Ellinikon: 3,3 bln euro projects during Phase 1 – The projects pipeline until 2026

With a particularly expanded investment program which together with the partnerships so far exceeds 2.3 billion euros, and if we add the investment of the casino exceeds 3.3 billion euros, the first phase of the major projects and developments in Elliniko is progressing from Lambda Development.

In this huge and complex venture, there are projects of all levels, from infrastructure projects, regeneration, stream highlighting, building, sports, social, etc.

To make it possible, famous names from Greek and international business and leading architects have already been involved in these projects: AVAX, INTRAKAT, EKTER, BOUYGUES, FOSTER+PARTNERS, SASAKI, AEDAS, KENGO KUMA, ORILINA, TEMES, PIRAEUS BANK, EUROBANK, ORILINA, FOURLI GROUP, HILL INTERNATIONAL, SETEC, JACOBS-MACE etc. In the investment of the casino GEK TERNA and Hard Rock and the list is constantly growing.

The first phase projects that started gradually last year are expected to multiply by 2023 and be all in the implementation phase by 2024. It is a complex undertaking at a time when the construction sector is facing “hybrid” challenges – in relation to the country – such as lack of personnel at all levels, the prices of raw materials, the shortages that are presented, the energy crisis, etc.

But what is it that we will face in 2026? which spaces, which buildings, which areas of Hellinikon will come alive and transform into new parts of a new “smart city” within the city? As detailed in its recent business presentation, Lamda is divided into categories.

The construction projects of the first phase include:

1. A) Residential buildings:

A1.Riviera Tower: the country’s first green skyscraper by Foster+Partners architectural firm. The investment has reached 350 million euros. The ECI has been taken over by the BOUYGUES-INTRAKAT scheme.

A2. The Cove Villas: They are the premium residences in the area of Agios Kosmas.

A3. The Cove Residences: They are beach condos also in the area of Agios Kosmas.

A4. Apartments to the right of the condos in the area of Agios Kosmas.

1. B) Shopping centers and retail parks

B1. Vouliagmenis Mall: Shopping center on Vouliagmenis Avenue in the Elliniko area, the largest in the country. The investment has reached 350 million euros. The design was done by the architectural office AEDAS.

B2. Riviera Galleria: Premium shopping center on the beach of Agios Kosmas Marina. The design was done by the architectural firm Kengo Kuma & Associates. The investment reached the cost of 150 million euros.

B3. Retail Park of the Fourlis group, an investment of 55 million euros.

B4. Coastal residential and commercial developments by Orilina Properties. The investment has reached 70 million euros.

1. C) The Tourist Offices

C1) Agreement with Piraeus bank (investment 147 million euros) and Eurobank (investment 140 million euros).

C2) Partnership with TEMES (70% and 30% Lamda) for 2 luxury hotels and branded residences. The cost of the investment amounts to 300 million euros. The design was done by the architectural office AEDAS.

C3) Mixed-Use Tower in Vouliagmenis Av. in partnership with Brook Lane Capital (70% and 30% Lamda) for a hotel, branded residences and premium offices. The design was done by the architectural office AEDAS. The cost of the investment amounts to 200 million euros.

1. D) The Metropolitan Park

It concerns the construction of a metropolitan park of 2 million square meters, one of the largest coastal parks in Europe, it will also be the largest green space in Athens that will increase the average green footprint throughout the city. Soft uses of sports and social activities will be developed. The design was done by Sasaki architectural office.

At the same time, the basic infrastructure of Elliniko is under construction from 2022 under contract with AVAX, a project worth approximately 250 million euros with completion in 2025. It includes the highlighting of the streams in the area, the sanitation and upgrading of the beach of Agios Kosmas, the undergrounding of Poseidonos Avenue etc. The building for people with disabilities is under contract with EKTER, which will be delivered in the Fall of 2023, a project worth 15 million euros, is also under construction. The Experience Park has been in operation for about 1.5 years.

Funding and revenue

Ellinikon’s €2.5bn financing comes from the €600m Equity Capital Increase (SCA) in December 2019, the €200m bond in July 2020, the €1bn bank financing, proceeds from the projects of 800 million euros.

Expected contracted revenue amounts to €1.3 billion by 2025 (2022 €200 million, 2023 €500 million, 2024 €500 million, 2025 €100 million).

In relation to the observed cost increase, the following have been calculated:

-Contingencies included in the Project Budget for 15%-18% of the total cost.

• Contracts that protect against cost fluctuations in complex development projects.
• Future revenues have not been locked in leaving room for possible absorption of future cost increases
• Adjustment of pre-specified cost range in construction contracts – balanced risk agreements
• Continuous review of cost estimates with best-in-class consultants and rigorous internal cost control procedures

Presales and partnerships

In residential areas, interest and pre-sales have exceeded expectations, increasing confidence in revenue and bringing new residential developments already from the first phase of the project. Estimated revenues are €600m from Riviera Tower, €190m from Cove Villas, €270m from Cove Residences, making a total of €1.1bn.

Regarding the Malls, at Vouliagmenis Mall there has already been interest in 92% of the leases and 25% have been signed. Accordingly, for the Riviera Galleria there has been interest in 71% of the leases and 3% have been signed.

Technical consultants are: Hill International for the infrastructure projects and open projects (landscape) and the Jacobs-Mace scheme for the buildings. Setec is the independent engineer of the overall project.

In addition to the above projects, the large investment for the integrated casino complex in Elliniko by the GEK TERNA-HARD ROCK scheme is also underway. The permit signing was completed last year and we are now awaiting approval of the building permit to begin the construction period. It is estimated that the project will be able to be completed in mid-2026.