Lamda Development

The Greek stock market greeted the release of the 8.5-billion-euro bailout tranche by sending the benchmark to a new two-year high on Friday.

The Athens Exchange (ATHEX) general index closed at 806.12 points, adding 0.80 percent to Thursday's 799.73 points. On a weekly basis it grew 3.07 percent.

The 37,000 square meters characterized as "forest" by the Piraeus Forestry Authority may turn out to be the Achilles' heel of the 8-billion-euro investment in the development of the old Athens airport plot at Elliniko, according to the chairman of contractor Lamda Development, Anastasios Giannitsis.

Lamda Development said on Thursday it has bought out HSBC Property Investments' stake in Greece's biggest shopping center and plans to list its shopping mall business on the Athens stock exchange.

The modest gains on low trading came as no surprise on Friday at the Greek bourse, and activity at Athinon Avenue looks set to remain shallow until next Thursday's Eurogroup meeting, where key decisions are expected - at least as far as Athens's much-needed bailout tranche is concerned.

Construction work on a $7.9 billion project to convert Athens's former airport complex into a seaside resort is set to start within the next six months, State Minister Alekos Flambouraris said on Friday.

Commercial property experts see the recent deal between Lamda Development and Varde Partners as confirmation of estimates that shopping centers would become a target for investors from both Greece and abroad, the reson being the considerable resistance malls have shown in the face of pressure from the economic crisis.

The prospect of long-drawn-out negotiations between Athens and its creditors is testing the patience of investors, and that, combined with jitters regarding the Dutch general election and the Fed's interest rate decision, led to further losses at Athinon Avenue on Wednesday.

A 7.9 billion euro plan to turn a derelict former Athens airport into one of Europe's biggest coastal resorts, included in Greece's latest international bailout, will go ahead despite recent delays, a senior privatization agency official said on Saturday.

The development of the old Athens airport at Elliniko is now well behind schedule, while delays on behalf of the Greek state in meeting its contractual obligations, as well as new issues that have arisen in the last six months - such as the possible listing of the area as one of archaeological interest - are undermining the investment climate in the country.

The Greek bourse benchmark finally cleared the 650-point level on Tuesday to record a new seven-month high, as the certainty of Greece finally meeting all the bailout review requirements pushed stock prices higher at the end of the session.