Lamda Development: Proceeds with the issuance of a “green” bond – Greek firsts

With the aim of financing investments in green energy, sustainable buildings and systems that create a “smart” energy city in Hellinikon, in the context of the largest urban renewal that is in full swing in Europe, tomorrow, Wednesday, July 6, the public offer for the seven-year ” green” bond of Lamda Development

In particular, as stated in Lamda Development’s newsletter, the raised funds of the common bond loan (CDO) of up to 230 million euros minus the estimated issuance costs (net amount estimated at 223 million euros) will be allocated by the company and its subsidiaries exclusively in green investments.

More specifically, as stated in the information, they will be allocated to:

• Sustainable Buildings and Sustainable Urban Outdoors. These relate to the development and construction of new buildings or the energy upgrade of the Group’s existing buildings (i.e. shopping centers and marinas and/or existing buildings within the Metropolitan Pole), which have or will obtain international sustainability certifications or will improve their energy performance efficiency, reducing the demand for primary energy and/or adapting them to conditions that are formed due to the phenomenon of climate change, as well as the development of sustainable urban outdoor spaces that will secure natural resources and contribute to the containment of climate change, according to criteria of the green bond framework. For the investments of this category, an amount of between 85 million euros and 110 million euros of the net raised funds of the KOD will be allocated, until the end of the year 2025.
• Green energy. Investments in this specific category concern the licensing, acquisition (such as indicative purchase of a plot of land, acquisition of a company, etc.), construction, development and installation of production units and energy facilities from renewable sources and/or hydrogen production and energy storage units (facilities where stored energy from RES or hydrogen and is returned later), to cover the energy needs of the Hellinikon Project as well as the rest of the Group’s properties (shopping centers, marinas). For the investments of this category, an amount of between 65 million euros and 85 million euros of the net funds raised will be allocated until the end of the year 2025.
• Smart city. The investments in this category concern the acquisition, construction, development and installation of intelligent systems in the Hellinikon project with the aim of reducing consumption and saving energy, reducing greenhouse gas emissions, preventing and controlling pollution and sustainable use and protection of water resources. The investments, which will be partially financed by the funds of the KOD, will indicatively include intelligent control and management systems for energy, water resources, pollution prevention and control, sustainable transport and/or systems that serve circular economy purposes.

For the investments of this category, an amount of between 45 million euros and 60 million euros of the KOD’s net raised funds will be allocated, until the end of the year 2025.

The regeneration of Hellinikon is in full progress – The firsts of the project

The financing of the Hellinikon project which is in full progress with the construction sites already operating and those that will operate being the largest in the country, as the managing director of Lamda Development Odysseas Athanasiou has repeatedly stated, is already fully secured even before the start of the projects, with the successful capital increase of 650 million euros, the issuance of a 320 million euro bond as well as the 1 billion euro loan agreements signed with Eurobank and Piraeus Bank.

According to the public presentations made by Lamda Development and interviews with journalists in Elliniko, the first smart green city at an international level is being created from its foundations. Other Greek firsts at international, European or national level are:

• The Ellinikon Park, the metropolitan park in the making, with a part of it, the Experience Park, already open to the public since last December, is the largest seaside park internationally. It will be the first “smart” park in Greece that will incorporate smart solutions for the safety of visitors and the preservation of the natural environment, such as lighting systems that will adjust the intensity depending on the season and time of day, as well as systems for continuous monitoring of environmental conditions, saving energy and water.
• The Experience Centre, the visitor centre, opened to the public a few weeks ago, is the largest of its kind internationally. The historical landmarks and the projects that make up the design of The Ellinikon “come alive” before the eyes of the visitors in the largest interactive model in Greece world 45 sq.m.
• The building to house four disabled associations, whose work has already started and will be completed in 2023 at the expense of the investor, is a model building at European level in its field. For symbolic reasons, but also for essential reasons, it is the first project that started in Hellinikon and the first that will be delivered.
• The Palace of World Pontic Hellenism in Sourmeni has also begun its own journey through time, the construction of which is being done at the sole expense of Spyros Latsis. Expected to be delivered within the next three years, their premises will house the local Pontian club, its library, conference rooms and function rooms, among others. The plot belongs to the public spaces located within the Elliniko investment and the construction costs of the project are fully borne by Spyros Latsis, following the acceptance of the relevant request by the Municipality of Argyroupoli-Elliniko. The building will be a landmark for Hellenic, Greece and universal Pontic Hellenism.
• The Commercial Hub of Ellinikos, the new commercial, entertainment and business destination extends over more than 185,000 sq.m. on Vouliagmeni Avenue, the largest shopping center in Greece will be located. A next-generation shopping park, as announced, with large-scale retail as well as state-of-the-art office space.
• The Marina Residential Tower will be the tallest green skyscraper in the Mediterranean and aspires to become a new landmark at the European level. The consortium of companies Intrakat – Bouygues Batiment International and Intakat which has already been selected as a consultant, providing pre-construction consulting services regarding the design, planning, supply chain and construction management of the project in the form of Early Contractor Involvement ( ECI), has undertaken similar projects for the construction of 80 famous skyscrapers in the world.
• The demolitions, which have almost been completed, were carried out after a series of studies that provided, among other things, for the separation and utilization of materials, through recycling processes and indeed within the construction site to a large extent, with the result, among other things, of avoiding the burden on traffic in the area. Also, water resources were fully utilized to save water, etc., a unique process of its kind for the size of the project.

Strategic partnerships in the context of regeneration

In the context of the urban regeneration of Ellinikos, Lamda has already proceeded to sign agreements with TEMES SA, of the Konstantakopoulos group, for the joint development of two modern, luxury hotels and the corresponding tourist-residential complexes on the coastal front of Ellinikos, during the first five-year period phase of the project’s implementation, with Brooklane for a mixed development tower as well as agreements with Piraeus Bank and Eurobank for the relocation of their headquarters to the new Business Center that is being created. It has also signed a strategic partnership with Fourlis SA. for the development of a unique Retail Park, within the shopping center. Last week it was also announced the conclusion of a memorandum of cooperation for the purpose of establishing a modern educational organization for primary and secondary education in Elliniko (CGS Ellinikon), between Lamda Development, through its subsidiary Elliniko MAE, Prodea Investments and Costeas – Geitonas School ( CGS).

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