Lamda Development management expects the group’s financial performance to remain under pressure until the second half of 2027 because of the low profit margin on the Riviera Tower project.
Speaking on a management conference call yesterday to discuss the nine-month results, Haris Gkoritsas, Lamda Development’s CFO, referred to the tower’s “very low profitability”.
This is another significant challenge for Lamda, as construction costs continue to rise while investment in the project’s infrastructure continues. Meanwhile, delay clauses have been activated in connection with the project by around 20 homeowners, according to market sources, who are seeking compensation as provided for in their purchase contracts.
When profit margins will change
Mr Gkoritsas acknowledged that the group’s performance was not satisfactory to management, noting that it was being affected by the Riviera Tower project’s low profitability.
“We will therefore continue to see this impact as construction of the tower progresses and the percentage of the project completed increases. We estimate that this impact will persist until the tower is handed over, which we expect in the summer of 2027,” he said.
“Until then, Riviera Tower will continue to weigh on our profitability. After that, however, the new residential developments will begin to contribute, with significantly higher profit margins. Accordingly, we expect profit margins to rebalance from the second half of 2027,” the CFO added.
The timing of land plot sales also affected the financial results from the start of the year, during which the group recorded losses of around €60m.
At project level, however, net losses at The Ellinikon were significantly higher, reaching €138m in the nine-month period, compared with a loss of €2.3m in the same period a year earlier.
The next wave of sales
Lamda is meanwhile preparing to bring another 100 apartments to market for sale by year-end, followed by a further 100-150 units in 2027.
“Commercial demand for our residential developments remains particularly strong. At the end of September 2026, 615 of the 750 homes offered for sale at Little Athens had been sold or reserved, representing an absorption rate of around 82%,” said Apostolos Zafolias, Lamda’s head of strategy and investor relations.
For 2026, the target is to end the year with capex of €1.6bn, up from €1.4bn at the end of September.