The International Merchandising Centre (IMC), the landmark building just off the highway leading into the capital, will close for refurbishment once the Cyprus Stock Exchange has moved out in May and will reopen in September as a home and office exhibition and supplies centre.
A clearance sale of all the clothing supplies within the IMC will be held in June and repair work on the building will start in July, with exhibitors gradually moving in.
The IMC Home & Office Megastore will include 18,000 square metres of small and medium-sized business, selling anything from furniture and home interior accessories to finishing materials.
The building will house mostly Cypriot producers and importers, as opposed to the imports-only IKEA home supplies store in the nearby Shacolas Emporium Plaza, adjacent to the existing Super Home Centre.
IMC owner Andreas Kaisis told the Financial Mirror that the top floor of his building will be limited to high-end decor supplies and a gallery, while the 1,000 sq.m. rooftop will be used for garden furniture and outdoor accessories.
A further 15,000 sq metres of storage space has also been allocated at a nearby location for bulky and large-volume supplies.
Kaisis said that the whole project is being developed in cooperation with a reputable French firm, considered among the biggest consultants in the exhibition and retail industry.
However, the veteran entrepreneur’s plans may have met a snag, with the Scientific and Technical Chamber (ETEK) saying that the IMC has violated zoning regulations, as only wholesale businesses such as showrooms and warehouses are allowed in the area.
Kaisis said, however, that at least 20 retail outlets already operate in the area, while the Super Home Centre had been without a permit until last year. He added that even the Shacolas project next door to his did not comply with initial plans that were supposed to house a hotel and offices within the shopping mall complex and which will now include a Carrefour supermarket, cinemas and fast-food outlets.
“When I started work on the IMC I was attacked from all sides. One day they would tell me I could not operate a retail centre in an industrial area, the next they would tell me I could only operate as a retail merchandising centre.
“Then, I introduced the concept of the offshore trading companies that was also blocked as the exhibitors could not sell either retail or wholesale, and they could not even keep their stock on the island. All they could do was operate a representation and take advantage of the then low income tax bracket of 4.25%.”
“Why are some people trying to kill every idea I have?” Kaisis asked, adding that he will not be upset by any obstacles by any group.
ETEK’s bone of contention is a derogation of the planning law allowing the owner of the IMC to lease part of the building to the CSE and that the building could not be used for retail purposes.
The derogation was good for five years, after which the CSE would need to move out. Kaisis duly informed the CSE that its lease expires in April and that the lease will not be renewed.
ETEK has blamed corruption within the Town Planning Dept. as the reason why it turns a blind eye to a host of flagrant irregularities and that the department often favours certain business interests over others.
Now Kaisis has reciprocated the charges, saying it is ETEK that is behaving selectively. In a statement released last week, Kaisis challenged ETEK to clarify whether it was on a mission to undermine the IMC, and if not, why was the chamber not complaining about the other infractions in the area.
Beyond the mammoth shopping mall to be operated by retail giant Carrefour-Marinopoulos due for launch in 2007, the nearby suburb of Latsia is attracting a host of retail and wholesale stores, such as the Smart shops, and a large plot that will see the regional Lidl lost-cost store open in the near future.
