Construction of coastal Larnaca’s Metropolis Mall has not begun yet and this has raised concern among key players of commerce in Cyprus.
The timetables announced for the construction of the mall, which aims to revitalise the town’s commercial centre, have not been met, with tenants expressing concern over the delay. They argue that Larnaca is the poor relative in Cyprus as far as well-known brand shops go, anyway.
INSIDER was informed that there was a delay in the issuing of the building permit due to changes demanded by the authorities in relation to the road network and other development projects in the area. And from the company’ side the designers of the project were changed.
But now that all has been settled, the green light for construction to begin is imminent, reliable sources also said. South African development company Acsion Ltd is behind the 40,000 square metre shopping centre.
Acsion Group has signed a land lease agreement with Larnaca’s Bishopric for 33 years, with the right of two renewals – again of a duration of 33 years each. The land is near the GSZ stadium.
The Group was founded by Cypriot origin Kyriacos Anastasiades and the Metropolis Mall will be his first investment outside the African country. As the company’s report points out, the investment is viewed positively with expectations of high returns and is also considered a good start in the Group’s geographical diversification bid.
The company estimates that renting costs for the first 33 years will range between €12-13.5 million. Inflation will be taken into account when calculating the annual amount, but the reduction will not exceed 1% and the increase not more than 4%. Because this is a potential financial obligation, the Group will provide an associated asset as collateral.