In a press conference a few days ago, the Hellenic Republic Asset Development Fund (TAIPED) provided details regarding Lamda’s development plan for the old airport of Athens Elliniko. At the same time, Lamda Development disclosed some of the details regarding its offer in answer to an inquiry by the Hellenic Capital Markets Committee.
Lamda informed that upon approval by the Court of Audit it will be invited to sign the sale and purchase agreement at which time, the transfer of 100 per cent of Elliniko shares to Lamda will take place.
The timeframe for the implementation of the investment spans to a total of 25 years from the signing of the agreement and it is divided into distinct phases. The three first phases will last 5 years each (targeting a completion rate of 20 per cent, 40 per cent and 75 per cent respectively) and refer to the optimized way to develop the metropolitan park, the remaining infrastructure and the commercial, cultural and other planned projects.
With regards to payments, they will be made by an SPV that will be established prior to the signing and Lamda will control at least 33.34 per cent of the voting rights. The SPV will pay a total of 915million euros and will invest 1.25 billion euros for the implementation of the proposed utility infrastructure, the metropolitan part and all other public areas.
The time-schedule for the payments is as follows: 300 million euros concurrently with the transfer of the shares, 395 million euros between the 3rd and the 7th year (instalments of 40-million euros per annum and 220 million euros at the last year) and the remaining 220 million euros between the 8th and the 10th year.
Further, the completion rate for the 1.25 billion euros investments will be 35 per cent, 20 per cent, 25 per cent and 20 per cent during the aforementioned phases. The proposal is supported by Global Investment Group and under the agreement, the loans to equity shall not exceed 3/1.
The plans submitted by Lamda Development for the approximately 1,500 acre site of prime real estate include the development of a casino on the site, yet the state has not committed to granting such a license, which is to be given in a separate tender.
According to TAIPED, construction will begin sometime in 2015. However a number of hurdles remain, including planning approval for the development, a positive ruling by the Council of State and approval by Parliament.
Meanwhile, Independent Member of European Parliameny Kriton Arsenis in a question submitted to the European Commission condemned the ‘illegal tax exemptions’ he says were granted to Lamda Development that he says violate both Greek and European law. Specifically according to the MEP the consortium will be exempt from any tax related to the exploitation of the site – i.e. that it will be exempt from any tax on revenue, property transfers or capital accumulation.
Source: capital, thepressproject