Lamda Group, owned by the Latsis family, is preparing rental homes in Elliniko
- 02/07/2024
Lamda Development is set to initiate the creation of residential properties that will also be available for rent, expanding beyond the property sales model it has established in the market so far.
The first step in this direction was marked by a recent agreement between Lamda Group and Xeris Ventures, which is 80% owned by the Latsis Group and 20% by Lamda. It’s worth noting that the Latsis family is the main shareholder of Lamda, holding a 43.8% stake through Consolidated Lamda Holdings. According to this agreement, Xeris Ventures will develop four complexes with rental residences. Lamda’s aim, through this strategic expansion, is to generate recurring revenue streams, which will flow into its coffers alongside the rental income from the commercial centers The Ellinikon Mall and Riviera Galleria, where it will earn revenue from the stores that will be established there.
Lamda’s goal is to strengthen its presence in the rental housing market.
According to Lamda’s CEO, Odysseas Athanasiou, during the regular general meeting of the group’s shareholders on Thursday, June 27, 2024, Lamda’s participation in Xeris Ventures may increase in the near future, with prospects for providing quality rental spaces. Xeris Ventures acquired the specific properties by investing 225 million euros.
“Studies have already begun for the construction of four new residential complexes. I estimate that their construction could start by the end of 2025, at the latest in early 2026, with the aim of being delivered by the end of 2028 and made available for rent. Currently, there is a high demand for quality rental spaces, especially in the southern suburbs, while the supply is zero. We hope that this will be a successful investment, the results of which we will know in approximately 2 to 3 years from today,” Mr. Athanasiou stated.
“The capital will not be provided by Lamda but by the main investor (editor’s note: Spyros Latsis), and if this specific project develops satisfactorily, the group will enter this sector with greater intensity. The goal is to have sufficient recurring income from 2026-2027 onwards through property management,” he added.
The restructuring of the sale of offices in Elliniko
Tthe group seems to be taking a step back in the development of office buildings within Elliniko. According to the CEO of Lamda Development, some of these offices were offered for sale without attracting the expected interest. “We saw some interest, but not at prices that we consider attractive. We have not abandoned this project. However, the gap created in the offices has been covered by the sales of the residential properties that we have already put up for sale.”
As for the developments planned, demand exceeds 110% at The Ellinikon Mall on Vouliagmenis Avenue, with terms already agreed for 70% of the 280 stores in the specific shopping center designed by the architectural firm Aedas. Regarding Marina Galleria, which will include 100 stores, Lamda has agreed on lease terms for 62% of these spaces.
The first phase of the projects is set to be completed by the end of 2027, with a portion of it – including the new sports facilities of Elliniko – to be completed by 2026.
At the Riviera Tower, all 173 available apartments have been sold, along with all 27 luxury residences, The Cove Villas, and all 115 apartments, The Cove Residences. These projects have generated revenues of 700 million euros for Lamda.
What will George Prokopiou’s investment bring?
Another significant development is the investment by shipowner George Prokopiou. Besides his prominent role in the shipping industry, he is also a major investor in real estate. By acquiring 2% of Lamda’s shares, Mr. Prokopiou has facilitated the purchase of four building plots from Hellinikon S.A., a Lamda subsidiary, located in an area of the former airport that is adjacent to the Hard Rock Hotel & Casino Athens and the Glyfada golf course. He will have the opportunity to develop 86,000 square meters for educational, residential, and office purposes. This area is one where Hellinikon S.A. has secured surface rights from the state for 99 years.