CYPRUS INVESTORS BUY NICOSIA PROPERTY FOR RECORD 18.25 MLN EURO

Financial Mirror

http://www.financia lmirror.com/News/Cyprus_and_World_News/19460
Feb 19 2010
Cyprus

Investors have paid the highest price for an inner-city plot in
Nicosia when they bought a parcel of 2,000 sq.m. off Makarios Ave. for
a record EUR 18.25 mln.

The plot that looks on to Stassicratous, Mnassiadou and Princess De
Tyra streets, has a market value of EUR 22 mln, as per two different
valuers. It is currently being used as a parking lot next to the
Enosi Neon Trust house.

In addition to a transfer fee of EUR 1.45 mln, the purchase from
Takis Kazolides also generated EUR 3.2 mln in capital gains tax,
which left the Inland Revenue Service and Finance Minister Charilaos
Stavrakis very pleased.

The deal went ahead despite the economic crisis, suggesting that
there are bargain deals to be made and reinforcing the principle that
property in Cyprus hardly ever loses value.

The buyer, HAYASA Properties Ltd, along with its sister company,
HAYASA Productions, a music and digital media company of French and
Cypriot Armenians, also holds another property on Stasikratous street
that will be transformed into a premium parking project to provide
luxury and secure facility on monthly corporate agreements and will
also be available for event hosting .

A company official said that the new purchase will be developed into
a multi-storey venture that will include a modern boutique hotel,
commercial and residential space and the capability to rise up to 18
floors with five underground levels. However, plans are still at an
early stage and a development project has not yet been finalised.

The announcement comes at a time when other developers have postponed
plans to put up a multi-storey building near the GSP area, while the
Chapo building and the new Deloitte head offices on Spyrou Kyprianou
Ave. (formerly Santa Rosa) are about to be completed.

The Nicosia municipality got itself into trouble by asking its citizens
what they wanted to develop on the former GSP plot, with everybody
calling for more green and underground parking, only to have a change
of heart and opt for a 25-storey high rise instead. The issue now lies
with the Ministry of Interior that says it owns the land, generating
a sense of disgust among Nicosia citizens who believe they were duped
by their mayor.