A HANDFUL of prospective buyers are believed to have shown keen interest to invest in the Venus Rock project, the biggest integrated beachfront resort already underway on the island with a market value of €5.7 billion, with on-site visits that followed last week’s successful Cyprus Investors’ Summit held in Limassol.
The project, under the wings of Aristo Developers, the property company 49%-owned by AIM-listed Dolphin Capital, turned out to be the star attraction at the Summit, organised by the Cyprus Investment Promotion Agency. The aim was to bring major institutional investors in contact with managers of local projects, including the Cyprus Limni Resorts & Golf Courses Plc, developer of the €1.5 billion hotel and golf resort project near Polis Chrysochous, as well as the upcoming privatisation of state companies and sale of government-owned assets.
“Of the 34 major investors and fund managers who attended the Summit, nearly half showed keen interest primarily in Venus Rock and also other investments, engaging in one-to-one presentations, while seven of those arranged for on-site visits,” Aristo Head of Marketing, Marios Pavlou, told the Financial Mirror on the sidelines of the Limassol event.
Ever since the €350 mln deal arranged by Dolphin Capital Investors with China Glory Investment Group fell through, there has been steady interest in Venus Rock, because it is a mature project and includes plots that are ready for delivery, Pavlou explained.
“While the real estate market was impacted by the financial crisis that hit Cyprus during 2012-2013, this has been less pronounced in prestigious golf resorts and beachfront projects,” he said.
Pavlou added that about 400 plots and 400 villas have already been sold, 300 villas have been built so far and a further 250 plots are available in the present phase.
“Don’t forget that the project incorporates the 18-hole Secret Valley golf course, which is a ready-made project for any investor.
“It’s a matter of time for the right investor to come forward. As a general investor rule, Cyprus is at the bottom line of its economy curve and it is best regarded as a buyer’s market,” Pavlou said.
Some of the features of the project incorporate Cypriot and eastern architecture, which makes it very attractive to Asian buyers.
The long list of associates includes EDSA Landscape Architecture (US), Porphyrios Associates (UK), Robert AM Stern Architects (US), Geoffrey Mouen Architects (US), UDS Architects (Cyprus), Gasterelia Design of Lebanon (developers of the Nikki Beach hotel, club and villa concepts), and Tony Jacklin championship golf course (US), all of which are attractive features and contributors for potential buyers.
At 10 million sq.m. of land, and a capacity to build up to 5,000 units, Venus Rock’s managers are expected to proceed with some sort of deal within 2015 that will inject much-needed cash into the economy and allow for the construction industry to pick up again.
The project’s marina is the only pending issue with the authorities, while the inclusion of the Nikki Beach Hotel concept has also created interest from investors.
I agree with most all @PeterD writes below (except Paphos, worryingly, has already been selected European City of Culture, 2017 – albeit based on ambitious projections by the then Key People in Paphos)….and yet…..
…….Based on my knowledge of the Island and it’s multi-layered problems, the Venus Rock development might just be the ONE that experienced Overseas developers seek to acquire, at the right price, and could also, possibly, become the Keystone development based on successful completion and astute Management and Marketing of the entire development. One that sends early positive turnaround signals out from currently completely out-of-touch Cyprus Government and Tourism Authority… a ‘beacon’ signalling, potentially, a new Phase, and Revival for this currently out-of-touch tourism-dependent Mediterranean destination. Yes, it’s a LOT to ask of such a beleaguered tourist destination, but maybe, just maybe, successfully completed, marketed and managed Venus Rock could mark a Turning Point in the direction of this once-favoured destination.
Why would any investor want to sink money into Cyprus.
Look at the facts…
Tourism is down and falling year on year. It’s alright making figures up, but it’s the bottom line that counts.
There are other places in the Med to invest, where there is stability and a guaranteed Return on Capital Employed.
The Cypriot Government is not investor friendly to foreigners who put money into projects. For example look at the problems encountered by the Indian owner of Elia Holiday Village, Latchie, where he had to keep stopping work.
The Cypriot Government is not Business friendly. The various Government Departments do not make it easy to get permits, heck they can’t even get the go ahead to sort out Latchie harbor because they don’t know who needs to issue the permits for the work.
Then there is the Green Eye God of greed and avarice, without mentioning corruption making the permits and buildings more expensive.
Then you ask having invested millions will the visitors want to return? With this level of investment you will need positive feedback. In Paphos they may come to see the unfinished roadworks running into three years and lack of footpaths on the main road through the town that wants to bid for the City of Culture 2017. Or maybe they will want to return to check out the price of coffee and bottled water having been ripped off the first time?
We need to get a reality check to get the tourists here and it’s not happening anytime soon.
Are the eventual costs of the project included in the amount of 317 million, which Mr Theodoros Aristodemou granted himself as loan from the Bank of Cyprus when he (Mr Aristodemou) was entrusted with the position of its Chairman?