DOLPHIN Capital Investors, a developer of holiday homes in the eastern Mediterranean offered its investors an opportunity to exchange their shares in the company for properties worth twice their value in Cyprus.
The results of the shares-for-property swap programme were announced yesterday. On offer were 124 completed and 888 nearly completed properties in Paphos & Limassol, 22 residential plots in Paphos, Larnaca and Famagusta, and 14 plots of land in Paphos, Limassol and Famagusta.
Although more than 1,000 assets were on offer, investors took up the offer on just 39 of them; 35 properties in Paphos and Limassol, three residential plots and a plot of land, for a sales price of €8.8m (£7.6m). The properties ranged in size from 77m2 to 244 m2.
According to reports, the shares-for-property swap was taken up entirely by new investors, mainly private individuals from across Europe and Cyprus.
Although the scheme had targeted sales of €50 million Miltos Kambourides, the founder and managing partner of Dolphin Capital Partners Limited, declared it a success and said Dolphin was prepared to reopen the plan later this month.
“The biggest achievement is that this programme was implemented successfully,” he said. “The first person moved in last week and called up to say thank you.”
He also said that those who had taken up the scheme were “brave“.
The main purposes of the Programme were to provide an exit opportunity for current shareholders, generate interest in the Dolphin shares by new shareholders, and increase the Net Asset Value per share.
Last year, the company posted a pre-tax loss of €156 million following falls in asset values. Its shares had been down 80% since the start of 2008, but have recovered by 23% since the scheme was launched in March.
In an announcement made on 9th April, Dolphin acquired the remaining 15% interest in Aristo Developers Ltd.
Theodoros Aristodemou, the founder, Managing Director and Chairman of the Aristo Developers Plc Group of companies, is also the Chairman of the Bank of Cyprus.