Presentation to the Association of Greek Intstitutional Investors
The presentation of LAMDA Development took place today at the premises of the Association of Greek Institutional Investors. LAMDA Development was represented through Mr. George Papageorgiou, General Manager, Mr. Odysseas Athanasiou, CFO, and Mr. Alexandros Kokkidis, Director of Treasury and Investor Relations.
The Company presented its successful progress, its strategy for growth, its financial data and its future prospects.
The Company has established its position as leader in the field of development and management of large shopping and leisure centers through its extremely successful operation of The Mall Athens as well as the Mediterranean Cosmos in Thessaloniki, with total GLA, 104.000 sq. m. and 100% and 97% occupancy respectively. The result of Companys successful strategy is the agreement with HSBC for the sale of 50% of The Mall Athens with yield 6,1% and valuation of the property at approximately 414 million. The Company commented that this transaction is the biggest one ever in the field of real estate in Greece and has place the country in the map for international investors.
The unique and dynamic presence of LAMDA Development in the field of retail real estate was further reinforced by the concession of the IBC building on Kiffisias Avenue in Maroussi, from Olympic Properties S.A., which will be transformed into a shopping center of 40.000 GLA and 4.5000 sq. m. of office spaces.
The Company has presented its specific strategy for growth:
- Further improvement of the performance of its shopping centers and office buildings (Cecil, Kronos in Maroussi), sale of ILIDA Business Center in Maroussi, and sale of the remaining apartments in the ILIDA residential development (77 apartments remain to be sold). Completion of the Flisvos Marina investment development during 2006 will consequently improve the financial results from 2007 onwards.
- Completion of all the developments, which are now at the stage of permits: IBC commercial center, office building in Bucharest, commercial center and residential complex in Sofia.
- Development of the Companys plot of land in Kifissia (residential), in Kato Kifissia (offices). Furthermore, materialization of the pre agreement for the development of motorway service stations in the National Road of Maliakos Klidi.
- Participation in the bids of the Greek State for the concession of tourist developments, exhibition centers, logistics and retail developments.
- Intention to participate in private agreements in Greece for the development and management of outlet centers, big boxes, etc. as well as tourist developments.
- Intensification of the network of companies in Romania, Bulgaria and Serbia in order to enter into new agreements for residential, office and retail developments.
- Expand into property fund management in CEE, Russia and Ukrania with total shareholders equity of approximately 200 million. LAMDA Developments own participation is estimated in the 15%.
- Further exploit international strategic alliances with ECE, HSBC, SONAE SIERRA, and PARKRIDGE, as well as with local players.
In total the Company is currently considering a variety of developments in order to invest approximately 400 million in the next 2 years, in order to achieve a total return on investment of 30% and total return on equity 85%.
The Company presented the consolidated financial results of the first semester of 2006, as well as the forecasts for the year 2006. The Company also clarified that the basic gain sources, are the recurrent sources from rents and services, the sales and the valuation of properties by IFRS.
During 2005, the two Commercial Centers of the Group were valuated for the first time at the fair market value from independent valuators, recording total gains of 150 million, while the first semester of 2006 The Mall Athens was reevaluated because of the agreement with HSBC, generating additional gains of 43 million. The new valuations will be conducted at the end of the year. According to the management of the Company the consolidated EBITDA for the fiscal year 2006 will reach 80 million.