Old Larnaca airport development plans moving ahead

Efforts are being redoubled to find investors for a project that aims to transform old Larnaca airport into a commercial complex following the experience from two previous failed attempts to develop the area.

Ministry of Transport Permanent Secretary Alecos Michaelides said the government is promoting the separation of the area, which covers around 220,000 square metres, into plots so as to attract more than one strategic investor.

He said that it has proven hard to find a single investor for the entire area.

Michaelides was referring to plans to develop the old airport, which is part of a bigger project undertaken by Hermes Airports and property consultants Danos Group and their partners BNP Paribas Real Estate to develop both the old and new airport.

Costas Kouleris, the project leader, told the Financial Mirror, that Danos Real Estate as the exclusive partner of BNPPRE for south-eastern Europe, has taken on the task of communicating the project to potential investors at home and abroad.

Plans include the construction of an airport hotel, a conference centre, a mall, showrooms for importers. Kouleris said that plans also include the construction of an aviation academy facilitating studies for professions related to the sector, combining academic and vocational training.

He said that they are having one-on-one meetings with potential investors, who are given a first-hand opportunity to hear about the project. Kouleris said the project is being presented at fairs and conferences such as the International Real Estate Exhibition ‘MIPIM’ in Cannes and the ‘Passenger Terminal EXPO’ in Stockholm. He said that at both events, investors “exhibited a vivid interest”.

“Things are going according to schedule and we see that our project is raising a few eyebrows. Many investors have asked to be personally informed once we make the call for tenders,” said Kouleris.

The call for tenders is expected to be made sometime before the end of the current year as announced by Transport Ministry.

While Danos and Hermes Airports appear confident that the project will get underway to transform Larnaca into an airport city, concerns remain as ambitious plans to develop the airport have fallen through in the past. This included talk of the Marriott hotels chain showing interest, while plans to build a solar park to make the grounds more sustainable in energy issues was also abandoned due to the economic crisis and the drop in tourist arrivals a few years back.

Just six years ago, in 2012, the media was buzzing with news of a major Chinese investor with big plans and money to develop the area of the old airport.

At the time, a total of EUR 600 mln was supposed to be pumped into a project which included the development of an airport mall and other related services in order to promote Chinese goods to Europe, the Middle East and Africa.

However, the investor abandoned his plans and left the island blaming Cyprus’ bureaucracy. Rumours suggested that the investor found that he did not have the financial backing to go ahead with his bold plans.