Aristo in deal with BOCY for full re­pay­ment of € 283 mln in loans

Financial Mirror (Cyprus) - - FRONT PAGE -

Aristo De­vel­op­ers Ltd and Bank of Cyprus have reached an agree­ment for the full re­pay­ment of all the Group’s out­stand­ing loans to the bank, amount­ing to EUR 283 mln.

Through a debt-for-as­sets swap, Aristo De­vel­op­ers trans­ferred prop­er­ties to the bank, which, based on the val­u­a­tions made by the Bank of Cyprus, amounted to at least EUR 310 mln, sig­nif­i­cantly over-cov­er­ing the debt.

Aristo said in an an­nounce­ment that the prop­er­ties of­fered from the Group’s vast land-bank, do not com­pro­mise the ex­ist­ing projects and the on­go­ing op­er­a­tions of Aristo De­vel­op­ers. No­tably, a sig­nif­i­cant part of the large-scale “Venus Rock Golf Re­sort” project has been in­cluded in the ex­change, the i mple­men­ta­tion po­ten­tial of which is now in­creased and ac­cel­er­ated, ef­fec­tively mak­ing the bank a sig­nif­i­cant share­holder in the res­i­den­tial re­sort ven­ture.

Aristo De­vel­op­ers said it re­mains ro­bust, with an im­pres­sive land port­fo­lio in ex­cess of 6 mil­lion square me­ters, boast­ing a devel­op­ment po­ten­tial of hun­dreds of mil­lions in real es­tate prod­uct.

It added that the cur­rent value of the com­pany’s re­main­ing prop­erty as­sets sur­passes the EUR 440 mln mark, and with to­tal loans of ap­prox­i­mately EUR 110 mln, the Net As­set Value of the Group ex­ceeds EUR 300 mln.

Fol­low­ing the debt set­tle­ment, all sold prop­er­ties are re­leased from mort­gage and any en­cum­brance. There­fore, where sep­a­rate ti­tle deeds have al­ready been is­sued, all trans­fers to clients can im­me­di­ately pro­ceed, and for projects where the ti­tle deeds will be is­sued at a later stage, all such deeds will be free of any obli­ga­tions and will be read­ily trans­ferrable. In ad­di­tion, the Group now of­fers for sale a wide range of free­hold mort­gage-free prop­er­ties.

The Group, re­lieved from high lever­age, said it has gained a sig­nif­i­cant com­pet­i­tive ad­van­tage that se­cures a healthy and strong fu­ture and al­lows Aristo De­vel­op­ers to reaf­firm its role as a leader in the Cyprus prop­erty devel­op­ment sec­tor.

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