September 18, 2019 / 6:22 PM / 3 months ago

Greece's Lamda plans cash call for Hellenikon, international players bow out

ATHENS, Sept 18 (Reuters) - Greek real estate company Lamda Developers will issue a cash call for up to 650 million euros ($717.67 million), it said on Wednesday, after international investors withdrew interest in a development project at an abandoned airport complex in Athens.

Lamda Development plans to turn the disused Hellenikon airport in Greece’s capital into a complex of luxury residences, hotels, a yachting marina and casino at a total cost of about 8 billion euros ($8.97 billion).

The landmark project, part of a post-bailout agreement between Greece and its lenders, had faced several bureaucratic hurdles in recent years, though the newly elected Conservative government vowed to expedite plans.

Lamda had previously said it was in discussion with Chinese and Gulf potential investors. On Wednesday it said it planned to call an extraordinary shareholders meeting for a share capital increase up to 650 million euros.

“The national character of this project and the management control structure it involves, in conjunction with the demanding timetable for the commencement of the development, did not allow an agreement to be reached,” Lamda said in a statement, referring to consultations with potential international partners.

“Therefore, Lamda Development undertakes 100 percent of the visionary Hellenikon Project. Strategic partnerships in relation to the shareholder structure or individual developments will be announced in the future as part of the ongoing strategy of the company and the international scale of the project.”

The principal shareholder, Consolidated LAMDA Holdings, was committed to fully exercising the pre-emptive rights and to underwrite any shares that may not be subscribed to, Lamda said.

The second major shareholder of the company, VOXCOVE (Joint Venture of Olympia Group and VNK Capital), strongly believes in the Hellenikon project and will participate in the share capital increase, Lamda added. ($1 = 0.9057 euro) (Writing by Michele Kambas in Athens Editing by Matthew Lewis)

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