Smaller hotel in the project with Qatar
24/10/2011 7:01
More offices and flats and less suites is what the government recommends for the joint development of Cyprus and Qatar opposite Hilton.
The change of the economic data of the agreement, which has been added a provision that Cyprus will receive all the additional revenues from the sales of the commercial and housing properties, gave rise to second thoughts in relation to the size of the hotel that will be built by the joint venture.
The preliminary agreement reached in April 2010 between the government and Qatari Diar provided for the construction of more than 200 luxury suites, a shopping centre, offices and flats.
“The area of the luxury hotel must be reduced in square meters in order to increase the area of the rest of the development”, member of the six-member joint venture, Andreas Pitas told StockWatch.
Qatari Diar seems to be having second thoughts and consents to build a higher hotel of 50-60 luxury suites instead of 220 that the model presented in their first visit to Cyprus provided for.
“We explained that Nicosia is not suited to large hotels due to the low occupancy ratios and that the existing ones base their viability on the other services offered”, property valuator, Antonis Loizou said.
Mr. Loizou’s office had evaluated the state land opposite Hilton at €135 million against €143 million that the Land Registry valuation was.
The plot will be granted to the joint venture against €50 million with the prospect that Cyprus will enjoy the additional profits that will emerge from the housing and commercial developments, if the revenues exceed initial calculations.
The disagreement on the price delayed the finalization of the agreement.
After a five-month silence, the Qataris came back.
They are expected to visit Cyprus in early November so as to make the final arrangements with the contract for the establishment of a company, in which the government and Qatari Diar will participate with 50% each.
“The Qataris will be in Cyprus in early November to ratify the interstate agreement with the signing of the contracts. Right after, the project will be undertaken by the joint venture so as to promote the architectural designs and all required procedures”, Mr. Pitas said.
The new company will be named by the members of the six-member joint venture. One name on the table is “Cyprus Qatar Realty” or something similar.
“It was a right thing to do not to let the opportunity be lost. By reducing the price of the land, the cost of development goes down too, pushing demand - and subsequently the price of flats - up. The government will enjoy the additional profit, as agreed with the Emirate”, Mr. Pitas noted.
“The Emir of Qatar has $175 billion in the banks and wherever he goes, he is followed by other businessmen.
The change of the economic data of the agreement, which has been added a provision that Cyprus will receive all the additional revenues from the sales of the commercial and housing properties, gave rise to second thoughts in relation to the size of the hotel that will be built by the joint venture.
The preliminary agreement reached in April 2010 between the government and Qatari Diar provided for the construction of more than 200 luxury suites, a shopping centre, offices and flats.
“The area of the luxury hotel must be reduced in square meters in order to increase the area of the rest of the development”, member of the six-member joint venture, Andreas Pitas told StockWatch.
Qatari Diar seems to be having second thoughts and consents to build a higher hotel of 50-60 luxury suites instead of 220 that the model presented in their first visit to Cyprus provided for.
“We explained that Nicosia is not suited to large hotels due to the low occupancy ratios and that the existing ones base their viability on the other services offered”, property valuator, Antonis Loizou said.
Mr. Loizou’s office had evaluated the state land opposite Hilton at €135 million against €143 million that the Land Registry valuation was.
The plot will be granted to the joint venture against €50 million with the prospect that Cyprus will enjoy the additional profits that will emerge from the housing and commercial developments, if the revenues exceed initial calculations.
The disagreement on the price delayed the finalization of the agreement.
After a five-month silence, the Qataris came back.
They are expected to visit Cyprus in early November so as to make the final arrangements with the contract for the establishment of a company, in which the government and Qatari Diar will participate with 50% each.
“The Qataris will be in Cyprus in early November to ratify the interstate agreement with the signing of the contracts. Right after, the project will be undertaken by the joint venture so as to promote the architectural designs and all required procedures”, Mr. Pitas said.
The new company will be named by the members of the six-member joint venture. One name on the table is “Cyprus Qatar Realty” or something similar.
“It was a right thing to do not to let the opportunity be lost. By reducing the price of the land, the cost of development goes down too, pushing demand - and subsequently the price of flats - up. The government will enjoy the additional profit, as agreed with the Emirate”, Mr. Pitas noted.
“The Emir of Qatar has $175 billion in the banks and wherever he goes, he is followed by other businessmen.
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