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Payment still pending for Venus Rock project

By Angelos Anastasiou

The amount of €241 million, contractually due to be paid by China Glory International Investment Group (CGIG) on August 21, 2013 for the purchase of the Venus Rock Golf Resort in Ha Potami, has yet to be received, Cyprus construction giant Aristo Developers Ltd said.

In a statement from Dolphin Capital Investors Ltd (DCI), holders of 49.8 per cent of Aristo’s share capital, the Chinese investor is said to have assured both Aristo and Dolphin “of its intention to comply with the payment terms of the contract of sale”, having “invested an additional €5 million in the project.”

CGIG has made two non-refundable deposits to Aristo thus far, for a total of €5 million. However the terms of the contract of sale, signed in May 2013, stipulate that the amount of €241 million was to be paid to Aristo on August 21, 2013.

This amount remains pending due to the process of “getting the approval required under the Chinese foreign exchange control regulations”, CGIG said.

It added that it is “in the final stages” of receiving said approval.

This is in line with DCI’s half-yearly report, issued on September 24, in which the late payment was also reported along with CGIG’s expectation that “the final approval by the Chinese authorities will be granted by the end of the year.”

“The late payment bears a penalty rate of 6 per cent per annum”, DCI’s statement concludes.

Theodoros Aristodemou, Managing Director of Aristo, said yesterday that the company “is in contact with CGIG in order to settle this matter.”

The Venus Rock Golf Resort was sold to CGIG by Aristo for a fixed amount of €241 million, and a conditional deferred amount of €48.5 million.

Upon signing of the contract, Aristo received a non-refundable deposit of €2 million.

According to the terms of the contract, the Venus Rock project will only be transferred to CGIG upon payment of the pending fixed amount, i.e. the €241 million.

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