Kanika sells Alexan­der, KIBC to Rus­sian in­vestors

Financial Mirror (Cyprus) - - FRONT PAGE -

The Kanika Group has sold The Alexan­der the Great Beach Ho­tel in Paphos and the Kanika In­ter­na­tional Busi­ness Cen­ter in Li­mas­sol in two sep­a­rate mul­ti­mil­lion-euro deals in­volv­ing Rus­sian in­vestors.

The re­cently-ren­o­vated Alexan­der the Great, a property of Kanika Ho­tels Ltd, was sold to an in­vest­ment com­pany, Ruby Coast Prop­er­ties Ltd. It will con­tinue to be op­er­ated by Kanika Ho­tels Ltd through a long-term lease agree­ment with the new own­ers.

The Kanika In­ter­na­tional Busi­ness Cen­ter, a lux­ury of­fice com­plex built by Kanika De­vel­op­ment Ltd, was sold to real es­tate in­vestors, Bys­trema Hold­ings Ltd. KIBC, that houses of­fices of ma­jor in­ter­na­tional com­pa­nies, such as forex traders FXTM, will be op­er­ated by its new own­ers who have plans to main­tain and fur­ther en­hance its op­er­a­tions.

Both agree­ments pro­vide that nei­ther the op­er­a­tions, man­age­ment and staff of the ho­tel nor those of the busi­ness cen­tre will be af­fected. Kanika Chair­man Spy­ros Th. Karao­lis said that the two deals would re­in­force the Group’s po­si­tion as lead­ers in the ho­tel in­dus­try in Cyprus and will al­low Kanika Ho­tels Ltd to ac­cel­er­ate its ex­pan­sion plans. Since 2010, Kanika Ho­tels has in­vested over 30 mln eu­ros in its ho­tels to re­fur­bish and up­grade the fa­cil­i­ties and ser­vices they of­fer.

He said that fol­low­ing the agree­ment with Clar­idge Pub­lic Ltd to jointly con­vert and man­age the Paphos Amathus Ho­tel as the sec­ond Olympic La­goon Re­sort – a highly suc­cess­ful con­cept de­vel­oped by Kanika Ho­tels in 2010 – the com­pany plans to build two new ho­tels in Cyprus and abroad.

Li­mas­sol-based tax and busi­ness con­sul­tants

Costas Tsielepis & Co Ltd rep­re­sented the in­ter­ests of the buy­ers, the two Rus­sian-owned com­pa­nies in Cyprus. The firm’s Di­rec­tor and Head of Taxation, Alexis Tsielepis, said that ne­go­ti­a­tions for the two prop­er­ties were long and ar­du­ous, but fi­nally de­liv­ered two much-an­tic­i­pated solid for­eign in­vest­ments in Cyprus, the big­gest since the cri­sis and bailout.

Tsielepis, whose firm was at the fore­front of yet an­other re­cent for­eign in­vest­ment in­volv­ing the Le Meri­den Spa & Re­sort in Li­mas­sol added: “Our clients were de­lighted to se­cure such im­por­tant in­vest­ments in a pres­ti­gious and wellestab­lished group.”

The firm’s Man­ag­ing Di­rec­tor, Ge­orge Tsielepis, who han­dled the lo­gis­tics of the deal, said: “Our clients de­cided to get in­volved in two of the most promis­ing in­dus­tries in Cyprus – tourism and in­ter­na­tional busi­ness ser­vices – demon­strat­ing for­eign in­vestors’ un­wa­ver­ing con­fi­dence in Cyprus and its econ­omy.”

He added that “re­cent moves by na­tional tax au­thor­i­ties to­wards greater trans­parency and em­pha­sis on sub­stance mean that in­ter­na­tional busi­ness com­pa­nies in Cyprus will have to es­tab­lish fully-fledged of­fices with commercial op­er­a­tions from the is­land in or­der to ben­e­fit from the at­trac­tive dou­ble-taxation ben­e­fits.” Ge­orge Tsielepis fur­ther stated that the new owner of the ho­tel has plans to in­vest fur­ther in the property, while the seven-storey KIBC is op­er­at­ing at al­most full oc­cu­pancy with most of its of­fices rented out to in­ter­na­tional busi­ness com­pa­nies.

A team of lawyers from the firm Scordis, Pa­pa­petrou & Co LLC, headed by part­ner Con­stanti­nos Adamides, acted on be­half of the Kanika Group on the two deals, while Alexia Tsanos, ad­vo­cate and le­gal con­sul­tant, rep­re­sented the le­gal in­ter­ests of the buy­ers.

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