Latest M&A News from Cyprus are Encouraging
Despite the negative global effects of the Covid-19 pandemic, the latest M&A deals reported to have taken place in Cyprus are shedding a ray of light for the future of the Cypriot economy.
Recent deals include;
- Israeli Hadassa Medical Group to build a medical complex network in Cyprus. The project is estimated to cost over €150M in total and will consist of; a) a state of the art private hospital in Nicosia, which is expected to be the largest private hospital including a diagnostic centre, b) a rehabilitation centre in Limassol for patients with chronic disease, patients struggling with substance abuse, trauma center, and c) an assisted living centre. The project is estimated to create more than 1,500 local jobs.
- The much advertised and historical Berengaria Hotel in Prodromos, which was initially acquired by Gordian Holdings along with other distressed loans from Bank of Cyprus in June 2019, has been finally sold to a Cypriot investor for €2M. The abandoned Hotel is situated on a plot of 26,520 square metres with the main building covering an area of 4,980 square metres. The hotel originally opened its doors in 1931 and its guests included many celebrities of the time including King Farouk of Egypt and other well-known businessmen of the region. The hotel had a casino and a night club and was described as the “Queen of the mountain hotels in Cyprus”. The renovation work required is expected to be much more than the actual sale price.
- Edge Development Group and NCH Capital Inc. announced a joint venture for the development of a costal area occupying 33,000m2 in Pyla, which is estimated to cost over €90M. The project will consist of mixed tourism and residential development that includes cottages, apartments and a 460-bed hotel complex, and is expected to create 500 local jobs during the construction work and an additional 300 local jobs once it’s operational.
- The Larnaca Port and Marina project is in the last stages of approval. The project is expected to start next January and continue for 15 years. It will be the largest development project to take place in Cyprus. An estimated value of the project is over €1B and bringing financial benefit of €120M per/year along with local job creation. The project consists of the expansion of the port, the expansion and upgrade of the marina, the development of land which includes spaces for social and cultural activities, hospital and educational centers, as well as the creation of green spaces and sidewalks.
Michalis C. Zambartas, Advocates, Legal & Tax Advisors is an exclusive legal member of CBA (Cross Border Associates – Global Network of Business Associates focused exclusively on cross-border business transactions).
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