CYPRUS: Aristo in deal with BOCY for full repayment of €283 mln in loans

Aristo Developers Ltd and Bank of Cyprus have reached an agreement for the full repayment of all the Group’s outstanding loans to the bank, amounting to EUR 283 mln.

 
Through a debt-for-assets swap, Aristo Developers transferred properties to the bank, which, based on the valuations made by the Bank of Cyprus, amounted to at least EUR 310 mln, significantly over-covering the debt.
Aristo said in an announcement that the properties offered from the Group’s vast land-bank, do not compromise the existing projects and the ongoing operations of Aristo Developers. Notably, a significant part of the large-scale “Venus Rock Golf Resort” project has been included in the exchange, the implementation potential of which is now increased and accelerated, effectively making the bank a significant shareholder in the residential resort venture.
Aristo Developers said it remains robust, with an impressive land portfolio in excess of 6 million square meters, boasting a development potential of hundreds of millions in real estate product.
It added that the current value of the company’s remaining property assets surpasses the EUR 440 mln mark, and with total loans of approximately EUR 110 mln, the Net Asset Value of the Group exceeds EUR 300 mln.
Following the debt settlement, all sold properties are released from mortgage and any encumbrance. Therefore, where separate title deeds have already been issued, all transfers to clients can immediately proceed, and for projects where the title deeds will be issued at a later stage, all such deeds will be free of any obligations and will be readily transferrable. In addition, the Group now offers for sale a wide range of freehold mortgage-free properties.
The Group, relieved from high leverage, said it has gained a significant competitive advantage that secures a healthy and strong future and allows Aristo Developers to reaffirm its role as a leader in the Cyprus property development sector.