Hellinikon complex to include 10,800 apartments

The construction of apartments on the Hellinikon complex will add enormous value to the project, as outlined by Lamda Development in its prospectus for the company's upcoming 650 million euro rights issue.

The company plans to build 10,800 apartments at Hellinikon with an average size of 110 square meters each. The blueprint for the new apartments includes the construction of two high-level buildings: a metropolitan park tower that will allow for mixed-use of space and a marina apartment tower. Returns on the housing are seen as being high from the first five years of the project, creating 58 percent of the project's value for its whole duration. The Hellinikon development has been based on a 25 year period.

The prospectus also outlines that:

• 43 percent of the total value to be created by the investment in the first five years is estimated to be derived from apartment sales, with another 35 percent coming from the development of two shopping malls and 10 percent more from the payment in advance of future revenues connected to the Integrated Resort Casino (IRC). The balance (12 percent) is seen coming from the sale of other real estate assets.
• 58 percent of the total value that will be created for the whole term of the Hellinikon project will come from the sale of apartments, which are estimated to sell for 3,500 euros to 4,000 euros per square meter. Another 8 percent will come from the valuation of the two malls once they are up and running with 28 percent more coming from other properties (including the payment of future revenues from the IRC).

Investments at Hellinikon, located in southeastern Athens, for the first five years are expected to reach 1.5 million euros without taking into account amounts to be paid to the state. This reaches some 2 billion euros after also taking into account a 467 million euro amount paid to the Greek government.

The prospectus adds that 600 million euros of this amount will be covered by the rights issue, with another 850 million euros coming from a joint bank loan from Eurobank and Piraeus Bank. An additional 400 million euros will come from initial down payment from the sale of apartments, the development of retail stores, rental of sports facilities by IRC and part of a 150 million euro bond loan to be issued. 

In addition to the 10,800 apartments, plans include the construction of three hotels providing a total of 1,000 rooms (without taking into account the new hotel to be built by the IRC). One 600 room hotel will be built on Vouliagmenis avenue with a second five star one (270 rooms) planned for next to the marina. A third luxury hotel with 170 rooms will go up alongside the beach.

Hellinikon will also include offices, a museum, cultural centers, sporting facilities, an aquarium and research center, and a metropolitan park.