Lamda Development raises 650 mln euro euros from rights issue

Lamda Development SA

17/12/2019 09:06

ATHENS, Dec 17 (Reuters) - Greece's Lamda Development
 LMDr.AT  raised 650 million euros ($716 million) via a rights
issue to help finance part of a landmark project at Athens'
former Hellenikon airport, it said on Tuesday.
    Lamda, controlled by the Latsis family, announced the cash
call in October to help fund a 8-billion-euro plan to turn
Hellenikon, a sprawling site of disused runways, terminals and
venues used for the Athens 2004 Olympics, into a complex of
luxury homes, hotels, offices and a casino.  urn:newsml:reuters.com:*:nL5N26U387
    The equity sale was oversubscribed by 1.1 times with 99% of
it covered by investors who exercised their preemptive rights,
Lamda said in a bourse filing.
    Lamda expects to spend about 2 billion euros in the first
five years of an estimated 25-year construction phase to build
two skyscrapers of offices and a hotel, about 800 residences and
a park. 
    Last month Lamda announced it had reached an initial
agreement with Eurobank  EURBr.AT  and Piraeus Bank  BOPr.AT  on
the basic terms for a loan of up to 880 million euros as it
prepares to start the project. 
    ($1 = 0.9073 euros)

 (Reporting by Angeliki Koutantou; editing by Jason Neely)
 ((angeliki.koutantou@thomsonreuters.com; +30 210 3376436;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))