PAPHOS - The Venus Rock Golf Resort project in Paphos district has been sold to Chinese investors for €290m.
The project, which will include two golf courses, the 5 Star Nikki Beach Hotel, two community sports centres, a commercial and leisure component as well as luxury private homes, was sold on May 17 to a Hong Kong based international conglomerate and real estate investment group.
According to a press release by the Dolphin Capital Investors Limited, the agreed purchase price for the sale of the sellers’ interest in Venus Rock amounts in aggregate to €290m and comprises a fixed consideration of €241.5m and a conditional deferred consideration of €48.5m.
Dolphin is a leading global investor in the residential resort sector in emerging markets and one of the largest real estate investment companies quoted on AIM in terms of net assets.
On May 17, 2013, the Company’s 49.8% subsidiaries Aristo Developers Ltd and Venus Rock Estates Ltd executed a binding Contract of Sale for their interest in the Venus Rock Golf Resort.
The Agreement has entered into negotiations with a Hong-Kong based international conglomerate and real estate investment group for the sale of shares and assets in the Venus Rock project, comprising all the plots and land, all permits and licenses granted, all related machinery and stock, and all the contracts and other agreements relating to the Project’s development.
An amount of €15 million from the deferred consideration is conditional upon the increase of the existing residential building capacity of the two golf phases of the Venus Rock project, expected to materialize soon as this measure has already been announced by the Cypriot government (as reported in the Company’s 22 April announcement).
The €33.5 million balance is conditional upon the finalisation of the on-going rezoning of certain agricultural land plots included in the project within 12 months from the Closing Date, which may be expected with more than 50% certainty.
The Sellers have already received a non-refundable deposit of €2 million against the Purchase Price, while another €10 million is payable anytime before 30 June 2013.
The remaining €229.5 million fixed consideration will be paid in part within three months from the closing date (17th of May) and the balance within six months, depending on the release of the existing mortgages over the Venus Rock project.
The mortgage free titles of the Venus Rock properties will be transferred to the purchaser (or affiliated companies designated by the purchaser) proportionately upon the payment of the respective fixed consideration installments.
The €48.5 million conditional deferred consideration is payable within six months from the closing date, provided that the relevant conditions are met, or within 12 months from the closing date, in the case where the relevant conditions are met after six months from the closing date (proportionate payment is provided in case the conditions are only partly completed).
The aggregate tax liabilities, agency commission expenses and other costs arising from the Transaction for the Sellers are expected to be in the region of 9% - 13% of the Purchase Price.
Miltos Kambourides, Managing Partner of Dolphin Capital Partners Limited, has described the transaction as a landmark one.
“In line with our strategic objectives for 2013, we are pleased to execute this landmark transaction, which has enormous benefits not only for Dolphin but also for the Cypriot economy in general”, he said.
Kambourides further said that “in a period of very challenging market and operational conditions in Cyprus due to the current banking crisis, the sale of Venus Rock for a significant cash consideration, demonstrates the quality of Dolphin’s real estate portfolio and proves the resilience of the Cyprus property market”.