Local
articles | 16 March 2017

BoC debt-for-property continues

Cypriot businessmen and foreign investors are the main buyers of the immovable properties in the hands of the Real Estate Management Unit (REMU) at the Bank of Cyprus, with increases in the number of transactions taking place in debt-for-property swaps in February 2017.

According to the press, an immovable property in Aglantzia, which was originally constructed to house the Tourism College, has been sold to a team of foreign investors with a company registered in Luxemburg who are aiming to turn the property into student housing.

The immovable property is located near the University of Cyprus, with an asking price from Bank of Cyprus (BoC) close to €5.4 million.

In the Ayios Andreas area a mixed commercial and residential immovable property was sold, with a BoC asking price of €1.2 million.

A building known as “Achilleion 2” on Kyriakou Matsi Street in the Ayioi Omologites area in Nicosia was sold with a BoC asking price of €1.2 million.

In Strovolos, a four-storey commercial building on Spyros Kyprianou Avenue was sold for €1.05 million.

On Makarios Avenue in Nicosia an immovable property was sold which consisted of two offices which were turned into one property. It is located on the sixth floor of the ‘Galaxias’ building with an asking price from BoC of €1 million.

A single-bedroom residence in Strovolos with total covered space of 460 square metres was sold for debt. BoC’s asking price was €600,000.

A plot of land in the Eleonon area was sold for €380,000.

Bank of Cyprus aspires within 2017 to sell immovable property valued at €340 million, most of which will be part of agreements with large debtors as part of debt-for-property swaps. So far the sales from REMU reached €155 million.

According to BoC’s financial results as they were presented on December 31, 2016, REMU managed immovable property numbering 1,124 whose estimated value was €1.4 billion.

The value of immovable property in the form of land is estimated at €516 million and numbers 739 plots. In addition there are two golf fields valued at €224 million, 149 pieces of commercial real estate valued at €337 million, 227 residences valued at €90 million, and 7 miscellaneous properties valued at €75 million.

According to the data, 87% of all properties are located in Cyprus with a value of €1.22 billion. Another 10.7% is located in Greece with a value of €149.8 million, and 2.3% is in other countries, with a value of €32.2 million.

Of the properties located in Cyprus, 34.8% are in Nicosia, 10.8% in Larnaca, 24.1% in Limassol, 26.3% in Paphos, 3.8% in Famagusta, and 0.2% in other areas.

Source: InCyprus

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