Cyprus has long been recognized as a prime investment destination, drawing both foreign and local investment interest to its real estate market.

The development of a real estate project is an inherently complex exercise, and several challenges warrant a careful and detailed analysis to support prudent decision making. Throughout the evolution of the exercise the investor is condemned to encounter burning dilemmas.

A real estate project development breaks down, predominantly, to the following phases: Some of the phases are bound to run in parallel as they are inherently interconnected. Each phase breaks down in sub-phases. Addressing the phases one by one or taking a decision on one phase by ignoring the others can be detrimental. To take a simple example, acquiring the land without defining the cost of construction or how this will be financed will most probably result in pressing or challenging issues at a later stage. Similarly, defining the commercial exploitation of the project, i.e. the selling prices of the units of the project, without considering taxes or professional costs can produce unpleasant surprises.

A real estate project development requires a holistic evaluation. The investor should engage in a comprehensive SWOT (Strengths, Weakness, Opportunities and Threats) Analysis to manage the risk as efficiently as possible.

In the process, the investor will have to engage and collaborate with lawyers, corporate service providers, tax advisors, valuers, engineers, designers, architects, banking and finance advisors and bankers; among others. The investor is confronted with a puzzle consisting of many pieces, which ultimately must be brought together. Because the pieces are not readily available but are instead provided by various unrelated sources, there is an elevated risk of either failing to complete the puzzle or illusively concluding that it has been completed.
  Each project or each investment must be evaluated on its own merits. The market forces, the sellers and their advisors, time constraints, and the ultimate target of the investor require adaptability.

Irrespectively, this is how we ideally approach our work:

• Obtain and exchange all legally required information and documents to ensure compliance with anti-money laundering regulations, including but not limited to KYC and source of funds.
• Onboard the client with the banking sector and/or offer the utility of one of our firm’s clients’ bank accounts.
• Sign a reservation agreement by paying the minimum deposit and securing as much time as possible until closing, while retaining refundability.
• Conduct, produce and/or obtain, inter alia:
  • a valuation of the target asset
  • a thorough due diligence on the target asset and the sellers
  • a solid tax opinion on the implicated tax considerations
  • an opinion on the structure of the acquiring vehicle and its components
  • a survey report on the allowable type and capacity of the envisaged development
  • a report on the ancillary acquisition costs, disbursements and taxes (e.g. transfer fees, land registry office fees, revenue stamps, etc.)
  • a report on the inherent professional costs of the development (e.g. architects, engineers, advisors, etc.)
  • an estimate of the selling power of the development (e.g. unit sale prices, rental value, etc.)
• Produce a complete report entailing the items listed above.
• Prepare a concise business plan/feasibility study/SWOT Analysis which will include financial structuring and funding strategy in terms of acquisition and/or construction.

• Negotiate, draft and sign the Sale and Purchase Agreement.
• Attend and address pre-closing matters (e.g. registration of Agreement at the Land Registry, and obtain any required permits)
• Close the transaction, by exchanging documentation, remitting payment and obtaining legal title and ownership of the target asset.

• Assemble the project team (e.g. architect, contractor and project manager etc.)
• Provide assistance to the project licensing process, if necessary.
• Negotiate and prepare all relevant agreements.

• Provide assistance to the tendering procedure.
• Negotiate and prepare all relevant agreements.

• Assemble the marketing and sales team.
• Negotiate and prepare all necessary marketing agreements.
• Prepare all necessary template agreements for the envisaged exploitation of the project (e.g. sales agreements, short or long term lease agreements, commercial usage agreements, management rules etc.)
• Facilitate and monitor the execution and development of the contractual process, including but not limited to conducting negotiations, finalizing or amending provisions and managing transactional matters up to the delivery of the units to the purchasers/lessees and the subsequent issuance of separate title deeds/certificate of lease.

• Assemble a property management team.
• Prepare all agreements related to the property management including the service agreements with third parties.

  We provide comprehensive financial and accounting support, including bookkeeping, VAT services, payroll management, and expert tax advisory. Ensuring accurate accounting and tax compliance is critical at every stage, and our in-house team is here to deliver the essential support you need.

  Our firm carries vast experience, possess immense knowledge, retains the right professional network, is proud for its reputation of trust and integrity and holds a proven track record in the real estate investment and development sector.

Our client-centric values coupled with the firm’s well-departmentalized structure – encompassing, inter alia, corporate, banking, financial and specialized legal departments – along with our diversified expertise across the whole spectrum of essential knowledge, may well ensure that you make the right decisions and your investment in Cyprus proves successful, in alignment with your vision. By offering tailored solutions, we guide you through every step of the investment process, ensuring that your goals are met with efficiency and precision.