Lamda Development has recorded losses of around €60m since the start of the year, as the Ellinikon project begins to weigh heavily on the group’s financial results.
As CEO Odysseas Athanasiou prepares to hand over the reins of the group to its new chief executive, Lamda’s financial results published yesterday present a mixed picture.
On the one hand, its shopping centres and marinas are performing well; on the other, the major urban redevelopment project is making losses. Ellinikon posted net losses of €138m in the first nine months, compared with losses of €2.3m in the same period last year.
In its announcement yesterday, Lamda said the losses were mainly due to higher costs arising from increased infrastructure works at Ellinikon and the timing of land plot sales.
Revenue from land plot sales fell to €29.3m this year from €114.5m in 2025.
The timing of sales has a major impact on results, but the group also faces a series of new challenges as it enters the second phase of development.
Addressing rising construction costs is one of the group’s top priorities as it battles to keep the profit margin on homes at around 40%.
Riviera Tower is also coming under pressure on profitability, as delay penalties for the project were recently triggered.
Commercially, however, Ellinikon has exceeded many expectations. Sales in the first nine months rose 27% to €272.2m, while apartments continue to attract strong buyer interest despite rising prices.
What is happening with the ION deal?
The deal with the Italians keeps being pushed back, from one month to the next and from one quarter to the next.
In its announcement, Lamda said that “the two sides are working methodically to align their positions on the key commercial issues that remain unresolved, with a shared intention of reaching an agreement that creates value and benefits for both sides. The parties aim to conclude negotiations on the outstanding commercial issues by the end of 2026, with a view to reaching a definitive agreement on the transaction, subject to the successful outcome of the negotiations”.