TAIPED notes benefits from Hellenikon project

The great economic benefits that will accrue to the Greek state by the development of the Hellenikon area were pointed out today by the heads of the Hellenic Republic Asset Development Fund (TAIPED).

TAIPED officials noted that the sum offered by Lamda Development was higher than the lowest acceptable bid of 560 million euros that had been set by TAIPED's , American Appraisal.

The works to refurbish the area are expected to begin in 2015, and the Greek state will begin getting the first money, around 300 million euros, from Lamda Development. According to TAIPED president Konstantinos Maniatopoulos, the money received from the Hellenikon project will lower Greek debt by one billion euros.

The precondition for the signing of the agreement with Lamda Development, and the consequent disbursement of the first tranche of the more than 900 million euros to given by the firm, according to TAIPED adviser Andreas Taprantzis is the approval of the urban planning and the positive opinion of the Council of State.

As Mr Taprantzis stated the scheme to revamp the Hellenikon area, according to law 4062, foresees the creation of a casino, however the decision to establish a casino and the sale of a relevant license through a competitive process is not an issue pertinent to TAIPED, but an issue of the state.

However, the investor retains the right to withdraw from the deal, without penalty fees, in the event that it feels that the lack of licensing would overturn the overall planning of the project,

On his part, TAIPED CEO Yannis Emiris noted that the fund acted in total transparency, safeguarding the public interest and the interests of the country's economy. He added that the deed for handing the property over will be ratified by parliament.

Lamda Development: Investment in three stages

Lamda Development issued a statement, excerpts of which are as follows:

"The prefered investor will be signing the relevant contract for the transfer of shares from TAIPED and the Greek state after the preliminary control from the Court of Audit is completed. The investment timetable is extended to 25 years since the share transfer and will materialize in distinct phases. The three first phases will take place in five years time, each of which has been clearly reflected in the company's business plan.

Noting that the investment is still in its primary stage, it is estimated that it will be at 20% in the first five years, 40% in the next 5 years, 75% in the following five and at 100% at the end of the 25 years stipulated in the contract".