LAMDA Development S.A. has signed Heads of Terms with HSBC Property Investments Ltd, regarding the transfer, subject to contract, of one half, of its participation in the Commercial and Leisure Centre The MALL Athens, which is owned by its subsidiary, LAMDA Olympia Village S.A. (LOV).
The Mall, Athens.
The Heads of Terms have been approved by the Board of Directors of LAMDA Development S.A and the Investment Committee of HSBC Specialist Investments Ltd, while the transaction will be completed after any necessary approvals have been granted by the authorities.
Specifically, after the completion of the transaction, HSBC Property Investments Ltd will own 13.006.105 shares of LAMDA Olympia Village S.A., which represent 49.239% of the company's share capital.
The valuation of The MALL Athens was based on a yield of 6.1%, resulting in a value of approximately €410 million. The transaction price has been calculated based on the net asset value after deducting the liabilities of LOV and is expected to reach the amount of €135 million approximately.
LAMDA Development will have great benefits from the strategic synergies that arise from cooperation with HSBC Property Investments Ltd in the property development and investment sectors. The proceeds are expected to be deployed in new investments in Greece as well as Central and Eastern Europe, focusing always on the optimization of invested capital and risk diversification.
Source: Lamda Development