Sprawling redevelopment along Athens "riviera" moves step forward

Lamda Development SA

23/03/2021 23:07

ATHENS, March 23 (Reuters) - Greek lawmakers on Tuesday
approved a contract transfering partial ownership of a sprawling
former airport site to Greek developer Lamda  LMDr.AT , bringing
one of the country's biggest urban redevelopment plans another
step closer to being realized.
    The 1,500-acre Hellenikon airport site in the Athens
riviera, where disused runways, terminals and former Olympic
venues have sat abandoned for almost two decades, will
eventually house shopping malls, hotels and residences under a
99-year lease with the state. 
    Demolition crews began tearing down the first of hundreds of
blocks that need to be removed from the site, which is three
times the size of Monaco, last summer after years of delays due
to red tape, political resistance and local opposition. 
    The contract approved on Tuesday gives Lamda lease and
ownership rights over part of the former airport, one of the
last steps before the developer starts construction work. 
    "There will be a metropolitan pole of global appeal which
... will showcase Athens as a tourist destination, a business
hub and a spot of recreation in the wider Eastern Mediterranean
region," Finance Minister Christos Staikouras said before the
vote.
    The project is expected to create 75,000 jobs and bring
about 14 billion euros to state coffers over 25 years of
construction, he said.
    The Greek conservative government that took power in 2019
vowed to speed up the project, which is expected to help its
efforts to pull the country out of a recession induced by the
coronavirus pandemic following a decade-long financial crisis.
    A consortium led by U.S. casino operator Mohegan Gaming &
Entertainment plans to build and operate a luxury resort for 30
years on the site. That contract also needs parliament's
clearance.

 (Reporting by Angeliki Koutantou
Editing by Sonya Hepinstall)
 ((angeliki.koutantou@thomsonreuters.com; +30 2102214608;
Reuters Messaging: angeliki.koutantou.reuters.com@reuters.net))