A 49-year-old businessman arrested over the arson of a luxury car showroom in Limassol was released on Tuesday after a court ruled that the evidence did not justify continued detention, while a 28-year-old suspect remained in custody.

Investigators told the court that analysis of surveillance footage pointed to “the possible involvement of a second individual”, shifting the focus of the inquiry as forensic and video examinations continue.

The two men were brought before the court by Limassol CID after police sought a further four-day remand to advance the investigation.

Defence lawyers objected, prompting the court to reserve its decision.

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On Tuesday, the judge ordered the release of the 49-year-old, a car salesman himself, but renewed the detention of the 28-year-old, who was found in possession of an SUV linked to the incident.

According to police testimony, CCTV footage was examined from the wider area and along routes leading out of Limassol.

Footage showed an SUV approaching the showroom shortly before the fire and leaving immediately afterwards.

Investigators said the vehicle was tracked towards Ayia Fyla before reaching Nicosia.

At a petrol station, images captured “a person exiting the vehicle whose clothing and footwear differ from those of the 28-year-old suspect”, raising doubts that he acted alone.

Police said camera analysis suggested “the presence of a second person inside the vehicle”.

Investigators are examining the possibility that the individual is a resident of Nicosia, with efforts under way to verify identities.

The SUV belongs to a company connected to the 49-year-old.

Police told the court that the vehicle had been sold to a company based in Nicosia but was later returned after difficulties renting it out, with two smaller vehicles given in exchange.

At the time of the arson, the SUV was in the possession of the 28-year-old, who said he had been using it for about a month.

The fire broke out in the early hours of Sunday at an indoor luxury car dealership.

Investigators said the perpetrators smashed the front window, poured flammable material inside and set the premises alight before fleeing.

Two luxury cars were destroyed, with estimated losses of €120,000 and €60,000 respectively, while five more vehicles and the building sustained damage.

Police described the attack as “a deliberate act of arson” captured on surveillance footage.

By court order, DNA evidence was taken from the 28-year-old as well as the seizure of items within the SUV itself, to be sent for scientific testing.

The suspect exercised his right to remain silent.

Earlier searches of properties uncovered mobile phones, radios and a military cartridge, while a separate search at the businessman’s residence yielded cash and replica firearms, all taken as evidence.

Authorities have not disclosed a motive for the arson and say they are examining whether it forms part of a broader pattern of attacks in Limassol, where a series of vehicle fires in recent months has heightened concerns about organised crime and retaliatory violence.

“All possibilities are being examined,” police said, adding that the investigation remains ongoing.