The amount of approximately 400 million euros is expected to be collected from the sale of luxury residencies at The Ellinikon, by TEMES and Lamda Development, equal to the total investment of the consortium for the tourist development at the coastal front. According to the business plan included in the valuation report of the two properties transferred to the two SPVs by Ellinikon S.A., two condo-hotels, of 160 and 200 rooms, will be developed in the area.
It is already known that TEMES with 70%, and Lamda, with 30%, will participate in the two companies (BELT and MALT) that will control the two resorts.
The 160-romm hotel will be developed at a plot valued at 22.3 mil. euros. The premises of the hotel and the other recreational facilities will have a total surface area of 14,756 square meters. The investment for that is estimated at 170 million.
The hotel will have been built by December 2026, so that it starts operating in 2027. The second hotel of TEMES and Lamda, at Agios Kosmas Marina, is expected to start operations during the same period. The hotel of 200 rooms will be developed in a plot, which will be transferred for 32.5 million euros. In this case, the investment is estimated at 235 million, with the hotel premises occupying 23,142 square meters.
Both hotels will include indoor and the outdoor restaurants and recreation areas, while one of them will also operate a landmark beach club of 800 square meters. According to the Cushman & Wakefield Proprius estimates, under the business plan, an entertainment area will be built there “to the standards of the world famous clubs of Mykonos, Ibiza and other luxury resorts”. According to the description, one of the hotels will feature, among others, a well known destination bar on its top floor, with panoramic view, a health club with leisure, fitness, beauty and wellness facilities, indoor and outdoor swimming pools, operating as both a wellness center and as an exclusive members club, for people from the greater area, outdoor pools, restaurants, one beach club, potentially managed by an external operator, and accessible to hotel guests, residence owners and club members, as well as sports facilities.
The second luxury resort is expected to have big outdoor spaces and include iconic commercial elements, such as restaurants and some shops.
The north wing of the hotel will have a view to the area of the marina up to the coastline of Piraeus, the south wing to Glyfada and Astir, Vouliagmeni. Procedures for the concession of the management of the properties to one of the leading hotel operator brands worldwide, is mature, whereas the negotiations for the rental of the areas of the restaurants and the beach club to international brand names of gastronomy, are at a very advanced stage.
What are the condo hotels designed by TEMES and Lamda.
The new element introduced by the consortium to Athens Riviera,is that the resorts will operate as condo hotels. To be clear, the owners of the branded residences will have the option (not the obligation) to participate in a rental program, which means that the hotel will manage any residences participating in this program. In practice, this means that while the owners are not using the property (potentially on the basis of agreed periods within the year), this may be conceded to hotel customers. Valuers expect that a structure will be applied, according to which the owners participating in the rental program will share all operating profit generated.
Return on investment will result from the sales of the branded residences, as the revenue is estimated at EUR 405 mil., 152.4 million from the 17 residences of one of the resorts, and 253 million from the 49 luxury properties of the second one. The properties that could be used as primary or secondary residence through the voluntary rental program will be villas, seaside residential units, hotel apartments or maisonettes. The building of the villas will range from 500 square meters to 950 square meters and for the apartments approximately from 150 to 300 square meters.
