The luxury real estate that the Cypriots gave to the Bank of Cyprus to reduce or write off their debts is bought by Russian or local businessmen who have cash. The multi-million dollar houses that once belonged to Cypriots and are located in tourist areas have become a magnet for Russians living in Cyprus.
According to information, agreements were recently concluded with the new buyers and the Property Management Unit (REMU) of the Bank of Cyprus and the main and most expensive ones are presented. Luxury villa, part of the development "The Residence", located in the area of St. Raphael in Limassol, one of the most aristocratic areas of Cyprus was sold to a Russian and the price requested by the Bank was € 5,7 million.
A property that had been given for debt relief and is located in the tourist zone and a short distance from the center of Protaras and Ayia Napa was recently sold. Bank of Cyprus requested € 5,6 million for the property.
The commercial space seems to have passed through Cyprus - its exhibition and exhibition hall is located in the organized industrial area of Engomi. The original owner gave it to the REMU unit for debts and the sale price was € 4,5 million. According to information, the property may change use and be used differently due to the fact that it is close to a university site.
Holiday home in Ayia Napa, according to information, was bought by a Russian and for the property there is a permit for the development of housing units. The property was given by the debtor to the Property Management Unit and its sale price was € 3,37 million.
Luxury apartment in Limassol part of the development The Residence given by the debtor for debt relief was recently sold. The price requested by the Bank of Cyprus was € 1,5 million.
Recently, the Bank of Cyprus sold a plot of land with a total area of 611 acres located in the area of Strovolos Olives. The sale price was € 380.000. Also, a residential plot that was given for debts was sold and the price requested by the Bank of Cyprus was € 369 thousand.
An apartment in Strovolos given to the REMU Unit by the owner for debt relief was recently sold. The sale price from Bank of Cyprus was € 250.000.
Goals 2017
Bank of Cyprus seeks to sell properties worth approximately € 2017 million in 340, most of which are part of large debt settlement, in the context of debt swaps instead of real estate.
So far, the sales of properties from the Unit amounted to € 155 million. These are 4 hotels, 36 properties related to land, 16 commercial properties and 23 residences. Bank of Cyprus is in the process of negotiating to conclude contracts with potential buyers for real estate worth € 24 million, of which 7 relate to land and 7 to housing. Based on the presentation of the bank's financial results on December 31, 2016, the real estate management unit managed properties with a book value of € 1,4 billion, corresponding to 1.124 properties. Based on the data, the value of the properties related to land is € 516 million and concerns 739 pieces, there are 2 golf courses worth € 224 million, 149 commercial properties worth € 337 million, 227 homes worth € 90 million and 7 properties worth € 75 million
According to the data, 87% of the properties worth € 1.218.000.000 are in Cyprus, 10,7% in Greece worth € 149.800.000 and 2,3% are located in other countries worth € 32.200.000.
34,8% of the properties are located in Nicosia worth € 423.864.000, 10,8% in Larnaca worth € 131.544.000, 24,1% in Limassol worth € 293.538.000, to 26,3% in Paphos worth € 320.334.000, 3,8% in the province of Famagusta worth € 46.284.000 and in other areas 0,2% worth € 2.436.000.
MEDIUM DEBTORS GIVE REAL ESTATE
The debt exchange instead of real estate works for medium debtors and the Bank of Cyprus, as it has pointed out, has no intention to drop the prices of real estate in order to "get rid" of them. Recently, the Real Estate Management Unit was given a holiday home in Limassol, part of the Pyrgos residential complex, with a sale price of € 819.000. Also a holiday home in Kouklia Paphos located in the residential complex called Theseas Village and sale price € 590.000. For debt write-off, a residential plot of land in Strovolos was given and a sale price of € 269.000. To repay the debt, a ground floor apartment was recently given in Kouklia Paphos located inside the residential complex called Zephyros Village. The sale price is € 265.000. Property in the area of Strovolos was recently given to the Bank of Cyprus for debt repayment. The sale price is € 248.000. Also again in Strovolos a residential plot was given for debt repayment with a sale price of € 247.000.
Source: Liberal