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Cyprus

Investor reaches deal with Larnaca mayor over luxury hotel

Architect's impression of the planned hotel

Amendments made to the agreement between a Russian investor who plans to build a five-star hotel at the Phinikoudes beach and the Larnaca municipality are subject to approval by the cabinet, the town’s mayor said on Monday.

“This is a complementary agreement between the two sides, which concerns the new terms of repayment by the investor for the municipal unit located on Athens avenue which he bought. The supplementary agreement was forwarded to the ministry of the interior to be presented to the cabinet for ratification,” Larnaca mayor Andreas Vyras said.

He explained the agreement sets new terms for the investor, giving him time to pay the outstanding €3.5 million for the building until January 2019. It also provides the final plans for a town planning licence for the luxury hotel and public utilities on the coast for €1.2 million

Asked about the tenants of the building which needs to be demolished in order to build the hotel, he said this is an issue that the investor has to arrange with them.

The private land, which is the site of the former Larnaca town hall, was purchased in the summer of 2014, while the Russian agreed to purchase another piece of land on which an amusement park currently operates. He intends to construct the hotel combining the two.

The investor paid an advance of €1.5 million to the municipality of Larnaca of a total of €5 million but after he did not pay any of the three following annual instalments the municipality decided to terminate the agreement.

Following the city’s decision, the investor filed a lawsuit requesting his advance of €1.5 million back, resulting in a court case.

The original plans provided for the construction of the ‘Larnaca tower’ at a cost of €100 million, including a five star hotel, apartments, restaurants, cafes, shops and an underground car park for 300 cars.

The area of the tower is more than 5.5 thousand square metres.

The public utilities worth €1.2 million which the investor has committed to completing include upgrading the municipality’s event stage and the square located on Athens avenue.

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