LAMDA Development announced as preferred investor for Hellinikon

Lamda Development S.A. was informed today, 31.3.2014, by the Hellenic Republic Asset Development Fund that the company is qualified as the preferred investor for the acquisition of 100% of the share capital of HELLINIKO SA. This Board of HRADF decision brings the 27 month tender process to an end.

Lamda Development S.A. and Global Investment Group (consisting of Al Maabar from Abu Dhabi, the Chinese conglomerate Fosun Group and other European investors) who are supporting the Greek company's offer, fully aware of the responsibility of such a world-class project, wish to ensure all stakeholders that the conglomerate is ready to rise to the project's challenges, in appreciation of the opportunity given to participate in the developmental course of Greece via this project.

Today's decision taken by the HRADF marks the end to the 13 year abandonment of this 6.200.000 sqm urban land, where the former Athens international airport of Hellinikon used to be located.

An investment estimated at 7 bil. Euros will transform this land into the largest privately funded investment ever in Greece; an integrated urban development that will combine the area's natural beauty and unique characteristics with emblematic buildings, state-of-the-art infrastructure offering world-class service and amenities which will improve the standard of living of Attiki area's millions of inhabitants. The investment will include a diverse range of residential communities, hotels, shopping centres, individual shops, theme parks, art and cultural museums, outdoor cultural venues, health and wellness centers, sport and recreational venues, the creation of a state-of-the-art business, educational, R&D hub as well as the total regeneration of the existing marina and the coastal front that will be open and accessible to all visitors.

The pivotal element of this investment most characteristic of its philosophy is the creation and maintenance of a 2.000.000 sqm. metropolitan park, one of the largest in the world, fully accessible to the public as well as the upgrade of the coastal front, which will be fully accessible to the public.

The total investment of Lamda Development A.S. and Global Investment Group amounts to 915 milion Euro for the acquisition of 100% of the share capital of HELLINIKO S.A. and b) 1,25 billion Euro for the implementation of social infrastructure (site clearance, parks, roads, playgrounds, coastal front, transportation means, connections with existing transportation means) reaching a total of 2.1 billion Euro. It must be clarified that, in accordance with the tender procedure, the investor is granted freehold ownership of 1.800 from the total of 6.200.000 sqm

The benefits for the Greek economy, the Greek business community as well as local communities are apparent and, based on existing studies as well as on the company's estimates, can be summed up as follows:

• The project is      expected to contribute to the country's GDP by 1.2% annually until 2025,      creating new national wealth generated from all areas of Greek businesses,      as a result of the revitalization of the unemployed workforce and the      creation of new investments.
• The project will      contribute to the creation of approximately 50.000 new job positions the      period 2014 – 2025 and will employ specialized scientific workforce as      well as technical labor force that is presently unemployed, especially      during these times of financial crisis.
• The revenue for      the Greek Government (V.A.T., income tax, e.t.c. during the period of the      project's full operation is expected to amount to approximately 2 bil.      Euro annually and will comprise a healthy and stable contribution to the      national objective for budget surplus and balanced budgets.
• Greece and      greater Athens, strengthens their position as an international tourist      destination, gaining 1.000.000 additional tourists each year thus      attaining extra revenue in addition to the many other benefits for the      economy.
• The greater      southern zone of Athens and the neighboring municipalities will have the      opportunity to enter a new cycle of development and advancement, in      conjunction with the other large projects that are presently being      development in the area.

Odysseas Athanasiou, CEO of LAMDA Development, made the following statement:

“Today is a milestone and the beginning of a new era for our country. As today is the beginning of the creation of a new world-class and international destination, which puts Athens back on the map not only as a tourist destination but also as a business and cultural epicenter, offering all citizens free access to venues for recreation, relaxation and sports. The total investment, 100% from private funds, will exceed 7 bil. Euro and will utilize the country's total work force in the best way possible. This project will offer significant environmental and cultural added value, which in turn will contribute to the enhancement of the larger area and the Attiki region in general.

I would like to thank our principal shareholder for his special support towards the success of this project and all the personal effort he put into attracting foreign investment to Greece.”

Lamda Development and Global Investment Group will present the project in detail to all local groups and social partners so that the project's design  and materialization maximize the benefits for not only the Greek society in general but also for local communities so as to best serve all national priorities that are connected.