Qatar land deal in Cyprus makes no sense, says Vgenopoulos

In an apparent snub to the government’s efforts to close a deal with a Qatari investment company to develop a luxury hotel on state-owned land opposite the Cyprus Hilton in Nicosia, Marfin Popular Bank Vice Chairman Andreas Vgenopoulos said the “deal does not make economic sense and in most likelihood cannot proceed.”
President Demetris Christofias accompanied by Finance Minister Charilaos Stavrakis and Commerce Minister Antonis Paschalides were in Qatar in early May and held contacts with the Emir of Qatar, Sheikh Hamad bin Khalifa Al-Thani, exploring ways for Qatar to invest in Cyprus.
Negotiations were held with Qatari Diar Real Estate Investment Company, a 100% subsidiary of the Qatar Investment Authority, itself owned 100% by the state of Qatar.
According to reports, the government of Cyprus plans to move the technical school and a military police camp situated on the land, in order to make way for the planned hotel complex and make EUR500 mln from the deal.
Vgenopoulos said he was surprised at the way the government promised to relax zoning restrictions in the area and possibly offer other concessions without offering the same relaxations to other investors including his group, which is proceeding with a major face lift of the Hilton at a cost of EUR 100 mln.
“We are proceeding with our investment plans irrespective of the Qatar land deal, which from what we have heard and based on press reports, does not make economic sense,” said Vgenopoulos who had earlier revealed that the headquarters of the Marfin Popular Bank, Cyprus’ second largest financial group would move to Greece.