Lamda Development’s leadership transition

The company has scheduled a business briefing for today, Monday, October 26, at which further details regarding the management transition are expected to be provided.

The change comes at a critical stage for Greece’s largest urban regeneration project. The Ellinikon has attracted significant capital, secured substantial advance residential sales, and is now in full-scale construction. However, the financial results for the first half of 2026 highlight mounting pressure from construction costs, delivery obligations, and the need to finance a multi-year investment programme.

From Shopping Centres to the Largest Urban Regeneration Project

Odysseas Athanasiou took over the management of Lamda in 2009, when the company’s operations were primarily centred on The Mall Athens, Golden Hall, and Mediterranean Cosmos.

During his tenure, the group expanded its portfolio, acquired Designer Outlet Athens, and undertook the redevelopment of the former Ellinikon Airport. This investment fundamentally transformed the group’s business model and increased its exposure to construction-related risks.

Athanasiou played a pivotal role in advancing the Ellinikon project. The company managed to overcome years of institutional and permitting-related obstacles, secure financing, and establish a new luxury residential market along the Athens Riviera.

However, the transition from managing commercial real estate assets to building an entire city has proved particularly demanding. Revisions to the original development plans, cost fluctuations, and delays affecting individual projects have highlighted the challenges of executing an investment programme of unprecedented scale for the Greek market.

€41 Million in Losses and Mounting Pressure on Profitability

The results for the first half of 2026 illustrate the two contrasting performance trends within the group. On a consolidated basis, Lamda recorded revenue of €265 million and EBITDA of €22.4 million after property revaluations, compared with €236.6 million in the corresponding period of 2025.

The group reported a net loss of €41 million, compared with a net profit of €127.9 million a year earlier.

This substantial reversal reflects both the lower contribution from the Ellinikon project and the significantly smaller positive impact of property revaluations. Valuation gains declined to €23.2 million, compared with €151.2 million in the first half of 2025.

The picture is even more pronounced before revaluations. Consolidated EBITDA stood at a negative €0.6 million, compared with positive EBITDA of €82.1 million in the previous year.

This deterioration reflects the pressures associated with the current construction phase and the extent to which the group’s financial performance depends on the timing of revenue recognition, project progress, and land transactions.

At Ellinikon, revenue for the first half of the year fell to €188.2 million, compared with €235.7 million in 2025. EBITDA before revaluations amounted to a loss of €44.8 million, compared with a profit of €39.6 million in the corresponding period.

The deterioration was primarily attributable to a significant decline in revenue from land sales, which fell to €15 million from €104 million a year earlier.

By contrast, residential revenue increased by 30% to €164 million, compared with €126 million. Residential activity continued to strengthen, but its contribution was no longer sufficient to offset the absence of major land transactions and the increase in operating expenses. According to the results presentation, Ellinikon’s operating costs included, among other items, €20 million in non-recoverable VAT, €14 million in third-party fees and other expenses, and €11 million in personnel costs.

These financial results reinforce the importance of completing construction works, as the recognition of revenue and profits is linked to project progress.

€1.83 Billion in Cash Receipts and €1.27 Billion in Investment Expenditure

Despite the pressure on profitability, commercial demand for Ellinikon remains strong. Cumulative cash receipts since the launch of the investment reached €1.83 billion as of August 31, 2026, comprising €1.31 billion from residential sales and €520 million from land sales and leases. The company expects cumulative receipts to reach €2.08 billion by year-end.

On the construction front, cumulative investment expenditure on buildings and infrastructure totalled €1.265 billion at the end of June, of which €943 million related to buildings and €322 million to infrastructure. Investment expenditure amounted to €276 million in the first half of 2026 alone. For the full year, Lamda forecasts investment of approximately €600 million, with cumulative expenditure expected to reach €1.64 billion.

In addition, as of June 30, the company had €420 million in receipts from sale agreements that had not yet been recognised as revenue in its financial statements.

The Road Ahead

The incoming management team will inherit a group with a substantial asset base but also increased financial obligations. As of June 30, 2026, Lamda’s borrowings stood at €1.832 billion, compared with €1.463 billion at the end of 2025.

Total cash balances amounted to €1.074 billion, up from €804 million at the end of the previous year. However, €377 million of this amount consisted of restricted cash, compared with €54 million at the end of 2025. Unrestricted cash therefore declined to €697 million from €750 million.

Meanwhile, the group’s net asset value (NAV) fell to €1.5 billion from €1.548 billion, while NAV per share declined to €8.81 from €9.06. Of the group’s total NAV, approximately €1.34 billion is attributable to the shopping centre portfolio, while the net asset value attributable to Ellinikon stands at just €170 million.

This difference reflects, among other factors, the substantial obligations associated with the project’s development and the accounting valuation of individual assets. Ellinikon’s total asset value amounts to €1.698 billion, but this is accompanied by liabilities, net of cash, of approximately €1.528 billion.

In contrast to Ellinikon, the group’s four operating shopping centres continued to deliver positive results. Retail sales increased by 5% to a new first-half record of €409 million, while footfall also rose by 5% to 12.5 million visits.

Net base rental income increased by 6% to €52 million, while the shopping centres’ adjusted operating EBITDA reached €50 million, up 5%. The total value of the shopping centre portfolio rose to €1.9 billion from €1.76 billion at the end of 2025.

This business continues to provide the group with stable operating cash flows, offsetting some of the financing and construction demands associated with Ellinikon.

Project Deliveries, the Metropolitan Park, and Outstanding Issues

The incoming management team will be responsible for overseeing a complex delivery programme, with key priorities including Riviera Tower, the waterfront residences, Little Athens, and essential infrastructure.

In its half-year results presentation, Lamda itself acknowledges that Riviera Tower and infrastructure works remain challenging, despite the significant progress achieved to date.

By contrast, residential developments being delivered under the company’s construction management model appear to be progressing in line with schedule. At Little Athens, 610 of the 750 residences marketed by the end of August had been sold or reserved, representing an absorption rate of 81%.

A significant portion of future profitability is expected to come from this development as construction advances and more revenue is recognised. At the same time, the Metropolitan Park and Ellinikon’s infrastructure are critical to accommodating the first residents.

The company’s balance sheet includes a liability of €662 million, measured at present value, for the remaining mandatory infrastructure works. The nominal value of these obligations stood at €741 million at the end of June.

Outstanding matters also include the agreement with Andrea Pignataro’s ION Group for the acquisition of land plots valued at approximately €450 million.

Completion of the transaction, which is linked to the development of an international research and innovation hub, would provide a significant boost to cash receipts and business activity at Ellinikon.

However, according to reports, negotiations remain ongoing, particularly regarding the terms governing the delivery of the land plots and the obligations associated with infrastructure development.

Kostaki and the Next Phase

The expected appointment of Evy Kostaki as Chief Executive Officer could signal a different management approach at Lamda. With extensive experience in investment management, banking leadership, and financial planning, the former Group CFO of Julius Baer brings a profile distinct from that of her predecessor.

Her professional career includes positions at Morgan Stanley Asset Management, Merrill Lynch Investment Managers, Eurobank, and National Bank of Greece, before joining Julius Baer in 2013.

The potential appointment of an executive with a strong financial background has raised expectations of tighter investment controls, more efficient capital allocation, and a greater emphasis on returns.

At the same time, it highlights the need for strong operational leadership with an understanding of the Greek construction market and the specific demands of the Ellinikon project.

According to reports, the company is considering a model that would grant greater autonomy to its individual business divisions, with the shopping centres and Ellinikon operating under distinct management responsibilities.

Odysseas Athanasiou’s departure would bring to a close a chapter during which Lamda evolved from a commercial real estate management company into one of the largest urban development groups in Southeastern Europe.