The construction of two villas on the first coastal line of the sea

Project description

The project for the construction of villas on the coast line p.

Zygi, Cyprus

1. DESCRIPTION OF SITE AND LOCATION

Plot

land

Registration

No15919, N plot 547, S=5340 m2.

The location of the site

The plot of land is located directly on the beach (1st line), 950 metres from the yacht port in the village

Zygi, 12 minutes drive from Limassol and 20 minutes ' drive from Larnaca airport.

Marina

The largest and most modern port for yachts in Cyprus with the number of Parking spaces 360. Commissioned in March 2011.

www.zygimarina.com

Fishing village

Zygi

One of the most picturesque and attractive for rest in Cyprus.

Situated between Limassol and Larnaca provides easy access to the highway network of the island.

2. THE BENEFITS OF THE PROJECT

Ø

Currently in Europe the construction of residential homes directly on the shoreline of the sea is only allowed in Cyprus and Montenegro.

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Despite the General stagnation of the market of real estate in Cyprus, property located directly on the coastline (beach access) and located in the vicinity of Limassol (10-15 min drive), has a stable investment demand.

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There are no offers for this type of property in the proposed price and European quality standard (similar to real estate on the Eastern outskirts of Limassol is 3. 5 times more expensive).

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High quality construction and finishing works gives a great advantage, ceteris paribus, as the objects in Cyprus, as a rule, dealt with the low quality of work performed.

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The offer allows the client to subsequently implement the property with economic benefits, ranging from 12 percent and above.

3. THE CYPRUS PROPERTY MARKET ON THE COAST LINE

Market analysis shows:

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The demand and price for residential property, located directly on the beach, falling down; most of the villas are sold at the start of construction built ;

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Even in Limassol, where prices for the same type of real estate are «exorbitant», the number of proposals is limited, which confirms that this type of residential real estate is highly illiquid;

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The cost of one square meter of quality properties on the coast starts from 7.000€ per 1m2 and goes, depending on location, up to 25.000€ per 1m2 (Limassol)

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Primary, finish, and quality housing sold at 95% from Paphos to Larnaca;

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Same for location of housing is below average quality sold 80% of the difference in price is only 10-15% per 1 m2

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The moratorium Cypriot banks on lending to the construction industry, led to a sharp decline in supply in this segment of the market.

4. INFORMATION FOR INVESTORS

Initially on the basis of tax considerations, the land was purchased and is owned by a Cyprus company, founded in 2008 and is not leading any business activities.

The most optimum variant from the point of view of investments is the construction of 2 (two) houses with a living area of 400 m2 each.

The amount of money that should be involved is 1 million 650 thousand EURO.

To guarantee the safety of invested funds, the investor is granted ownership of the shares of the company, in proportion to its actual participation in the Project.

The entire amount of the investment is not needed at the same time. The investment of funds will occur on-stage. Subsequent investments should come only after documentation and signing by the representatives of the parties to the statement of intended use of funds for the previous period.

For the purposes of financial control over the use of funds from the trust accounts of the company, the two options are:

1.

The representative investor must have the right of second signature on all financial and Bank documents, or

2.

The parties shall appoint an independent financial Director, has the sole right to sign all financial and Bank documents.

The maximum Project implementation period is 18 months.

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6 months designing and obtaining building permits

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12 months the construction of the facility

Profit from sales is distributed proportionally to the participation in the Project, with prior agreement of the parties.

The calculation of the profit (Euro):

Sales: 6 000 000

The Cost Of The Project 4 150 000

including land 2, 500, 000

including licenses, materials and construction 1 650 000

Profit before tax 1 850 000

Taxes 222 000

Net profit to distribution between participants is 1 628 000

The state of the property market in Cyprus, see :

https://www.homesoverseas.ru/n.