In the process of intensifying its investment program in its sector green energy through RES (renewable energy sources)but also in the energy modernization of existing properties, is Lambda Developmentwishing to provide lower costs in order to meet their construction needs as quickly as possible. During 2022 and including the newly acquired Designer Outlet Athens (formerly McArthurGlen Discount Centre), the listed company estimates that the group’s facilities have an estimated energy cost of €6 million during 2022.

At the same time, based on Lamda Development data, it is noted that in the nine months of 2022, expenses were increased by 1.9 million euros as a result of higher energy prices and higher energy consumption in shopping centers, due to the fact that in 2021 the facilities in question remained closed for three months. As a reminder, in May, the company began negotiating a new six-month variable energy pricing contract that replaced the previous “fixed” energy pricing contract that expired in April 2022. Most of the costs relate to common areas, which are provided mainly by tenants / shop owners.

In this context, Lamda Development Group management is expected to intensify efforts to implement green energy investments in existing eligible properties in its portfolio. Already in Athens shopping center has begun a program of measures for its broader renovation, which will include both energy modernization work and diversification of use, an increase in commercial store space and a reduction in food and entertainment space.

The energy cost of the group’s facilities in 2022 amounted to 6 million euros.

Acquisition

At the same time, capital placement has already begun in the renewable energy sector, where Lamda has developed an investment program for a total of 500 million euros until 2026. The company recently signed an agreement to acquire R Energy 1 Holding. Initially, 20% will be acquired, while Lamda reserves the right to acquire an additional 30.1% or a total of 50.1% of said Roka family company. Specifically, the listed company will invest €5m to directly acquire 20% of R Energy 1 Holding, with an additional €10m to be provided by covering Lamda Development’s €10m convertible bond issue. euros and for a period of three years, which will be issued by RES. Upon conversion of the said loan, Lamda (through its subsidiary Lamda Energy Investments) will be entitled to increase its stake in R Energy 1 Holding to 50.1%.

R Energy 1 Holding has a portfolio of 80 44 MW photovoltaic parks and is also developing a 16.4 MW wind farm. By 2023, the installed capacity of R Energy 1 Holding will reach 60.4 MW compared to the current 19.4 MW. In fact, in the next three years, this figure will increase to 140 MW, as it is planned to develop additional renewable energy projects and energy storage projects.

Considering that Lamda’s needs will multiply in a few years, when the first large buildings in Elliniko are completed, it becomes clear that investing in renewable energy is a logical choice. In addition to lowering energy costs, these investments also help reduce the company’s carbon footprint and improve its ESG (environment, society, corporate governance) performance.