PAPHOS - Economically-strained Aristo Developers are still waiting for much-needed Chinese money invested in their Venus Rock golf resort project in Ha Potami, Paphos.
“Aristo are still waiting for the down payment of China Glory International Investment Group in the Venus Rock project final agreement of which was reached last May,” Stockwatch news website said yesterday.
The agreed purchase price amounted to €290 million and provided a fixed consideration of €241.5m and a conditional deferred consideration of €48.5m. The €241.5m it should have been sent to Cyprus by August 21, 2013.
The project includes two golf courses, the 5-star Nikki Beach Hotel, two community sports centres, a commercial and leisure component as well as luxury private homes.
China Glory is a Hong Kong-based international conglomerate and real estate investment group.
Dolphin Capital, which owns 49.8% of Aristo, has already announced to shareholders that the €241.5m is still pending.
But it said the deal is not off because China Glory has already invested €5m in Venus Rock when the agreement was sealed on May 17.
Moreover, China Glory has informed Aristo that complicated money transfer regulations are behind the delay.
Nonetheless, Aristo insiders said the delayed money transfer is badly needed and that there is an annual 6% delay penalty.
Aristo developers are among a list of companies that owe millions to ailing Bank of Cyprus which has just set up as special unit responsible for selling off property.
As well as managing assets acquired from clients unable to pay back their loans.
Last week, BoC posted a €1.94 billion net loss in the first nine months of the year but the leadership also announced that there were indications that non-performing loans were starting to stabilize.
They have sent out a particularly stern warning to those who were responsible for the largest non-performing loans.
And this includes Aristo whose biggest shareholder, Theodoros Aristodemou, was BoC’s former chairman.