Lamda Development’s Defaults on Ellinikon Project

This strategic decision, adopted in early 2024, marked a change from the original plan, which was for Lamda Development to develop the project in house and only enter into strategic partnerships in special cases (e.g. hotel development) that required know-how Lamda Development lacked; this would allow the company to maintain control over all developments.

The initial criticism expressed by the investment community was that the allocation of large numbers of plots (for residential and office development) to third parties would lead to competing developments and to Lamda Development losing control over the overall plan for the project, forfeiting the biggest part of the development profit. The change in strategy was attributed to the company’s need to boost its cash flow immediately in light of the strain placed on its business plan by increased construction costs, delays in ongoing developments, and the lack of revenue from the non-residential projects that were part of the first phase, given that the project has in practice shifted exclusively to apartment pre-sales.

In recent months, however, the criticism has focused on the majority of these transactions being carried out fragmentarily and directly via bilateral negotiations, rather than through a structured tendering process that would ensure equitable