CHRIS Iacovides, the liquidator of six out of the eight companies in the Froiber Group, has successfully completed all necessary procedures for the Title Deeds to be issued by the Land Registry for a number of the Group’s apartment buildings, and his focus now is to work towards the issuing of the remainder.
“There has been much press recently regarding alleged demands from buyers by the Liquidator, on behalf of mortgagees,” said Mr. Iacovides “and the time has come to set things straight. Whilst buyers have my sympathy, they must understand that a financial institution which has funded a project and enjoys security against a specific asset is legally entitled to demand money against that security and to refuse to consent to the transfer of shares/Title Deeds, without some financial compensation.”
“I suggest that those who exert pressure and unfair criticism should take a look at the terms of the Memorandum of Understanding between the Republic of Cyprus and the Eurogroup, in relation to the residential property market and the regulation of real estate and be concerned with how close we are to property repossessions.”
Having set out his position, Mr Iacovides moved on to discuss the efforts made to issue Title Deeds for the Group companies, namely:
A&G Property Wise Development Ltd (“A&G”)
A&G was wound up and a Court Order was made ratifying Mr Iacovides’ appointment as Liquidator on 10 May 2010. A&G’s assets are comprised of nine apartment buildings and seven houses. There are approximately 110 buyers who purchased their property between 2002 and 2008. Recently, Title Deeds have been issued for four apartment buildings.
The other three Group companies were voluntarily wound up on 9 October 2010 and Mr Iacovides was appointed Liquidator by the members and creditors in their respective meetings.
George Andreou Developers Ltd (“George Andreou”)
George Andreou developed three apartment buildings and there were 34 buyers during the same period as mentioned above. Recently Title Deeds have been issued for all three apartment buildings.
Ktimatiki Epiloyis Ltd (“KE”)
KE developed two apartment buildings. There are a total of 10 purchasers who bought their apartments between 1999 to 2005. Separate Title Deeds have been issued for one of the apartment buildings.
Froiber Land Developers Ltd (“FLD”)
FLD’s assets are comprised of two apartment buildings, one of which is part completed. Recently, USB bank approved finance of €350,000 for the completion of the said building and the Liquidator is close to commencing the relevant works. In total there are 14 buyers who purchased between 2002 and 2006. Title Deeds have not been issued for FLD’s properties and efforts are ongoing.
The Liquidator made it abundantly clear that in order for the transfer of shares of land and/or Title Deeds to be possible, purchasers will be asked to pay various financial institutions, mainly banks, which enjoy security through their mortgages, the Inland Revenue Department for taxes due, as well as sewerage charges, municipal taxes and more. The amounts are calculated proportionally based on the size (m2) of each apartment.
“Unfortunately, the Group does not have other assets beyond what is set out above which could be realised with a view to settling the companies’ liabilities.”
Mr Iacovides explained that during the last 3 years many efforts have been undertaken to facilitate the issuing of the Title Deeds and added that this would not have been possible without the full understanding of the Director of the Inland Revenue and his officers, whom we thank.
“We had a series of meetings and exchanged much correspondence with officers of the Inland Revenue regarding tax matters. Additionally, financial statements for the liquidated companies were prepared and submitted to the Department.”
“Many apartment buildings contained irregularities,” he added, “we therefore submitted statements of intent for the purposes of the town planning amnesty. Following a review of each file by the planning authority and the issuing of the certificate of final approval these were filed with the Land Registry in order for it to issue the separate Title Deeds.”
There are still several files with the Planning Authority for the granting of the certificate of final approval, concluded Mr. Iacovides.
Finally, Mr Iacovides stated that the philosophy of CRI is simple, “We won’t make a drama out of a crisis”, nevertheless, he would like to make it clear that abusive and inappropriate behaviour by buyers towards managers of his office will not be tolerated.