Woolworth (
At a meeting held on December 20, 2006 and within the framework of the Company’s policy for new investments in the sector of land development, the Board of Directors of Woolworth (
N. K. Shacolas (Merchants) Ltd holds 11.73% of Cyprus Limni Resorts & Golfcourses Plc. This company owns a plot of 2,800,000 square meters in Limni, Polis Chrisohous, where a huge project with golf court, hotel, properties, villas and flats will be constructed.Â
The plot has access to the seafront with a quay of 150 meters. The Company is in a position to satisfy the needs of water supply and irrigation of the project. The above plot also includes a land of 280,000 square meters at the hill of Kinousa village, adjacent to the state forest, which will be developed separately in the near future and will benefit the village of Kinousa. The Company has already secured an approval by the competent authority for the separation of plots. Â
Cyprus Limni Resorts & Golfcourses Plc has also undertaken the cleaning, embellishment and restoration of the natural environment of the property, so as to be ready to accept the project without burdening the environment.Â
Woolworth is interested in investing in this project, since it is involved in the sector of land development and has the know-how to contribute to the project. Cyprus Limni Resorts & Golfcourses Plc has already started the procedures for its listing on the Cyprus Stock Exchange.Â
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Price and Terms
The acquisition price is estimated at CYP 10 mln. The final price will be determined by the Audit Firm so as to secure that the dealing is at arm’s length. The valuation of assets of Cyprus Limni Resorts & Golfcourses Plc will be undertaken by a well-known audit firm. The share price must be 10% lower than the price per share that third investors will buy at the Company’s listing in the CSE or earlier.Â
Within the framework of the agreement, Woolworth will provide management and support services to Cyprus Limni Resorts & Golfcourses Plc, as well as technical services for the next five years against the sum of CYP 250,000.Â
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Benefits and Prospects
– The investment is expected to give significant yields of more than 12% p.a in the next 5 – 8 years.Â
– The project is pioneer and will contribute to Woolworth’s know-how in order to develop in this sector in the future.Â
– The investment will add value in the portfolio of Woolworth. It will also differentiate the portfolio, adding a project belonging to other property sector rather than the big commercial plots, which have limited potentials of further development.
– The Board of Directors of Woolworth (
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