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Larnaca luxury seafront project revived

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Russian investor returns with ‘Larnaca Tower’ plans, boosting city’s transformation

 

Larnaca’s pursuit to catch up with the rapid development in other towns could get a significant boost from the return of a Russian investor, planning to revive plans for a €170 mln hotel and luxury residence project on the Phinikoudes seafront.

The project had been cancelled three ago years with Russian investor Nikolai Potapenko backing out after a dispute with the municipality.

The investor, Nikolai Potapenko, alleged local authorities buried him in red tape, accusing the municipality of a lack of vision for the city.

At the time, the town hall had claimed that there was good reason for the delay, and that the local authority was not to blame.

Back in 2020, a legal representative of the businessman told the Financial Mirror that Potapenko was to invest €170 mln, but the project got stuck in seven years of bureaucracy.

Potapenko had bought some of Larnaca’s prime land along the popular Phinikoudes with plans to build a 100-room five-star hotel and a 30-story building, dubbed the Larnaca Tower.

The hotel would have been the town’s first five-star property.

At the time, Mayor Andreas Vyras had argued that Potapenko had changed his plans four times with the latest plan for the site submitted by the businessman in February 2020.

Now, some three years after the breakdown of talks with the municipality, Lanomex Development Ltd (owned by Potapenko) is making a comeback with a fresh design.

The company has submitted new requests for relevant permits, including an environmental impact assessment study (EIAS) to the Environmental Authority. The entire project is now open to public consultation until January 7, 2024.

According to the new study, the proposed project involves the construction and operation of a unified development with 28 floors and a total height of 109 meters in the heart of the Phinikoudes strip. It will encompass residential units, commercial developments, dining areas, offices and wellness.

Based on the same information, the residential part of the development will include 142 apartments (60 one-bedroom, 62 two-bedroom, and 20 three-bedroom units), located between the seventh and 28th floors. The commercial section will feature seven stores on the ground floor and mezzanine.

The design of the proposed project also envisions the creation of a dining area operating on three levels, including the ground floor, mezzanine, and the first floor. Additionally, there are plans for business spaces for use as offices and open-plan offices on the first, second and third-fourth floors.

According to the designs, two wellness areas will operate on the fifth floor and the 14th-15th floor.

Positive outlook

Irrespective of the outcome of Potapenko’s new venture, stakeholders in Larnaca’s real estate have ample reasons to be optimistic about the seaside town’s future.

Recent reports highlight that the €1.2 bln redevelopment project of Larnaca marina and port is gearing up for full-scale implementation starting in early 2024, overcoming previous delays.

The commencement of phase 1 works is slated for January 2024.

Simultaneously, various private enterprises are actively advancing projects in Larnaca, with a specific focus on the area of the former refinery and storage facilities on the Dhekelia road.

Petrolina Group leads the way with its ambitious ‘Larnaca-Land of Tomorrow’ initiative, projected at over €1 bln.

Encompassing 400,000 square meters, it aims to offer residential units, offices, retail spaces, and dining venues, totaling 8,000 residential units.

The initial phase, situated along the seaside, is pending municipal approval, with ongoing discussions involving potential investors.

The renowned British architectural studio Foster + Partners has been entrusted with designing Larnaca’s new waterfront facade by the Lefkaritis-owned energy company.

This enhancement will replace about two kilometers of oil refineries that previously dominated the shoreline north of the town centre.

EKO Cyprus, holding a 55,000-square-meter plot near Larnaca port, has submitted its master plan, envisioning residences, commercial ventures, and professional projects.

Being the pioneer in dismantling fuel installations, the company aims to revitalise the coastal front, turning it into a vibrant social, tourist and commercial hub.

Solvin Ltd, a foreign-interest firm, has ambitious plans for two towers on a 27,224-square-meter site, investing over €50 mln.

The project, featuring 114 apartments, parking levels, and ground-floor restaurants, awaits approval, targeting a 2024 launch.

Solvin intends to rehabilitate eroded land, aligning with environmental guidelines to create a public beach.

Synergas is in discussions with possible investors for its 18,000-square-meter land. In the process of dismantling its LPG sphere, the cooperative anticipates completing the procedure by the end of December without the need for soil cleanup.

Intergaz, owned by London-based Cypriots, is exploring development on its 15,000-square-meter land.

Ongoing discussions with neighboring companies await a permit for the LPG installations’ dismantling. Soil studies indicate cleanliness, and the permit will define the terms for dismantling and soil disinfection.