Invest Cyprus has hailed a €180 million investment into Cyprus by NCH Capital, a $3 billion private equity firm based in New York, as a “clear sign” of the island’s post-Covid economic recovery.
The plans outlined by NCH Capital to expand in Cyprus with three major hotel and apartment projects near 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 firm’s lead in Greece and the Western Balkans.
“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,” said Santis.
NCH Capital’s projects are focused in the Larnaca West Coast and include a mixed-use five-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.
It also plans to invest in the redevelopment of an abandoned hotel into a mixed-use 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. It will partner with an Israeli-based real estate organisation for the project.
“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,” Santis said.
Santis added that NCH Capital has recently obtained permits to develop a branded boutique city hotel in the city of Larnaca and is 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.
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.”