On 11 December 2020, the Government of Cyprus signed contracts with a Cypriot – Israeli investment consortium for the redevelopment of Larnaca Port and Marina. The estimated cost of the project is €1.2 bln. The construction is expected to start in January 2022 and will be carried out in four phases over 15 years.
Larnaca, Cyprus: 13 November 2020
(c) Larnaca Port and Marina Project by Kition Ocean Holdings
According to the Cypriot Minister of Transport Yiannis Karousos, the cabinet approved the contract to be signed with the chosen consortium for one of the most important development projects for the coastal town. The Cypriot-Israeli consortium is Kition Ocean Holdings, composing of investors Eldeman Holding BV and Alexandrou Corporate Services Ltd.
The contract involves the restructuring of
The marina for at least 650 berths
The port and surrounding land development over an area of 220,000 sq.m. spanning a total of 510,000 sq.m.
According to Financial Mirror, the Larnaca Marina and Port will be equipped and expanded with the latest technological infrastructure. This will turn the Marina and Port into one capable of serving large vessels with the expansion of piers, docks and the construction of a modern passenger terminal.
The Larnaca Marina development will include
A yacht club with a retail park;
Hotels;
A private island;
Residential properties.
The Larnaca Port works will include:
the expansion and management of the Larnaka port,
improving current infrastructure such as the interior road network, storage space and
creating a new terminal for cruise ships and utilizing the port for cargo management.
The following works will be carried out in the area between the Marina and the Port:
a road network
green areas
parks
open spaces for events
an education and medical centre.
The consortium is also planning residential and commercial development with innovative architecture, streets, and parks.
The Minister of Transport said the cabinet
“expressed its satisfaction with the Project and has authorised me to proceed with the signing of the Concession Agreement. Therefore, in the coming days, we will invite the successful bidder for the signing ceremony”.
The Minister said he is “pleased to be in a position to proceed immediately with the signing of the contract at this difficult time with the pandemic crippling sectors of the economy”.
According to Financial Mirror, it is estimated that the state will receive more than € 19.6 bln during the lifetime of the project which includes the 125-year lease on the real estate. After 40 years, the port and the marina can be handed back to the government.
It is foreseen, that the complete project will span over 10 years or more as it includes building
2 hotels
9 office buildings
6 luxury apartment blocks.
Navigator Consulting Group provides Investment Advisory and Strategic Management services for companies in Cyprus.
For further information, please contact:
Philip Ammerman
Managing Director
Sources:
SHOHAM. 7 December 2020
Financial Mirror. 13 November 2020
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