Invest Cyprus has hailed a €180 million investment into Cyprus by US hedge fund firm NCH Capital as a “clear sign” of the island’s post-Covid economic recovery. Plans by NCH Capital to expand in Cyprus with three major hotel and apartment projects close to Larnaca are set to create over 1,000 jobs during the construction phase next year, and another 800 once the projects are fully operational.
The shift in demand from traditional family-owned hotels to “high quality” branded hotel resorts in the wake of the pandemic spurred NCH Capital’s plans, said Andreas Santis, the organisation’s lead in Greece and the Western Balkans. Construction of the projects is expected to drastically change the image of Larnaca West Coast, a seaside area with untapped opportunities for development. Several luxury hotels are under development along this stunning coastline.
Speaking on why NCH Capital selected Cyprus for its expansion, Mr Santis said: “Cyprus is an investment friendly country, where educated personnel can be found, excellent infrastructure, high level of services and geographically perfectly positioned. The stable tax system, the lower cost of living compared with other European countries and the high standard of living is also a big plus.”
NCH Capital’s projects are focused in the Larnaca West Coast and include a mixeduse 5-star tourist resort with a branded hotel and residences, known as ‘Floating Scapes’, which will be developed in partnership with Edge Development Group, a Cypriot company operating in the construction and development sector in Larnaca.
They also plan to invest in the redevelopment of an abandoned hotel into a mixeduse tourist and residential complex and develop 23,000 sqm of land into a commercial building – called Troy – with 280 apartments operating as a resort with spa, swimming pools and other amenities. They will partner with an Israeli based real estate organization for the project.
“Cyprus has always been a country in which tourism is a fundamental pillar of its economy. We strongly believe that this will continue and the change from traditional family-owned hotels to branded ones will upgrade the touristic product and attract better quality of tourism,” Mr Santis said.
“Our investment in Cyprus will have a positive impact on job creation and tourism, helping to boost the local and national economy. Having a US statutory investor willing to position itself in Cyprus and expand its activities sends a message of optimism and signals a light at the end of the tunnel.”
Mr Santis added that NCH Capital have recently obtained permits to develop a branded boutique city hotel in the city of Larnaca and are in the final discussions for the acquisition of an existing commercial building in Larnaca to be fully refurbished and converted into a high-end office and residential building. NCH Capital is also looking into other opportunities in the education and medical sectors, it said.
George Campanellas, Chief Executive of Invest Cyprus, said: “These promising development plans are a clear sign that the Cypriot tourism industry will make a strong recovery following the global coronavirus pandemic. International investors will take note that Cyprus offers enormous potential as an ideal location to expand real estate and tourism business. As Invest Cyprus, our aim is to identify the right type of investments towards making a strategic shift into a diversified and enriched destination.”
Invest Cyprus has a dedicated unit, TourInvest, focusing on investments in the tourism sector as part of a wider Project Bank, through which investors can access available projects in thematic areas. The newly launched Project Bank matchmaking platform, will assist interested investors to identify available investment opportunities and projects. Some of the currently available investment opportunities include an integrated golf resort, a sports resort, an assisted living and rehabilitation centre, an amusement theme park among others.