- Cyprus Property News Magazine - http://www.news.cyprus-property-buyers.com -

Construction deal with Qatar on track

NEGOTIATIONS with Qatar over the construction of a multimillion Euro commercial project in Nicosia have not been frozen, the government said on Monday.

The much-touted joint venture involving the construction of a luxury hotel, apartments, shops and offices in a plot opposite the Hilton Hotel, appeared to have stalled of late after the agreement was signed in April 2010.

But the Cyprus Finance Minister Kikis Kazamias said the Qatari delegation was expected on the island at the end of the month.

The minister told MPs on Monday that the Nicosia army barracks on the land earmarked for the project has also been cleared.

Under the agreement, the Cypriot state will contribute the land to the 50:50 venture, with the Qataris, acting through state-owned Qatari Diar Real Estate Investment Company, matching that agreed value in cash – €50 million.

It is understood that the two sides will finalise payment of the cash during the visit.

Any extra required funding would be sourced through loans.