Response to Hellenic Capital Market Commission
In response to the respective query from the Hellenic Capital Market Commission, «LAMDA DEVELOPMENT S.A.» (hereinafter the "Company") informs the investing public that in accordance with the terms of the tender for the acquisition of 100 % of the share capital of "HELLINIKON S.A.» (hereinafter the "Shares" ) and on the basis of the technical and financial proposal submitted by the Company to the Hellenic Republic Asset Development Fund (hereinafter the "HRADF ") which was accepted:
- The preferred investor will be invited to sign with HRADF and the Hellenic Republic the relevant sale and purchase agreement for the Shares (hereinafter the "Agreement") upon the completion of the pre-contractual audit by the Court of Audit. The transfer of the Shares will take place after the fulfillment of the conditions precedent provided in the Agreement.
- The timeframe for the implementation of the investment spans to a total of twenty five (25) years from the transfer of the Shares and is divided into distinct phases. The three (3) first phases of implementation last five year each and have been reflected in the Companys business plan so as to optimize in any possible way the combination of construction of the metropolitan park, the remaining infrastructure, and the commercial, cultural and any other kind of development. Noting that the investment is still in the early planning stage, it is estimated that the rate of implementation will amount after the first five years to a 20%, after the end of the second five years to 40%, after the end of the third to 75%, targeting to its completion in the aforementioned time.
- All kinds of payments in the framework of the Agreement and the implementation of the investment will be made by the special purpose company (hereinafter the "SPC") to be established before the signing of the Agreement. The Company will possess at least 33.34% of the voting rights of the SPC, in accordance with the terms of the tender. The exact participation of the Company in the aforementioned payments from the SPC will depend on the discussions with the interested investors with respect to their participation in the investment.
- The SPC will pay the full amount of 915 million euros for the acquisition of 100% of the Shares and will invest 1.25 billion for the implementation of the proposed utility infrastructure, the metropolitan park and all other public areas. In particular, the time-schedule for the payment of the total amount of 915 million euros provides for the payment of 300 million euros concurrently with the transfer of the Shares, 395 million between the third and seventh year after the transfer of the Shares and, finally, the payment of the remaining 220 million between the eighth and tenth year after that transfer. Further, the investments in infrastructure utilities, the park and the public areas, estimated at the amount of euro 1.25 billion, are expected to be implemented by 35% within the first five years , by another 20% in the second five-year period, by 25% on the third five-year period and the remaining 20% until the completion of the investment. Regarding the financing of the abovementioned amounts it is noted that under the Agreement the loans to equity ratio of the SPC may not exceed a 3/1 proportion. In any case, the further specialization of the financing methods depends directly on the general financial conditions prevailing at the time of the investment implementation.
- The proposal of the Company is supported by Global Investment Group to the extent that participants in this group have been committed to make available funds for the payment of the consideration, submitting the necessary documents to this end in the framework of the tender and in accordance with its relevant terms.
