Authorities are nearing the completion of their investigation into how Malaysian fugitive Jho Low obtained Cypriot citizenship in 2015.
Jho Low, who is wanted internationally for allegedly embezzling billions from Malaysia’s 1MDB investment fund, secured a Cypriot passport through the disgraced citizenship by investment program (aka Golden Passport Program.)
This case is among many under investigation by a special police team. A recent meeting between investigators and the Law Office reviewed progress and discussed the next steps for ongoing cases, including Low’s.
Police spokesperson Christos Andreou emphasized the routine nature of this meeting, focusing on ongoing investigations. The Law Office is closely monitoring developments and has provided further instructions.
Low’s case involves an international arrest warrant issued by Malaysia, Interpol, and Cyprus. He reportedly acquired citizenship through the purchase of a €5 million villa in Ayia Napa.
Once his past was uncovered, Cypriot authorities seized the villa for potential confiscation if it was found that his citizenship was obtained through deception.
The investigation also examined the role of the late Archbishop Chrysostomos, who received a €300,000 check from Low during his application.
The Archbishop returned the check when the scandal emerged, and a police investigation found no evidence of corruption.
Despite indications of Low’s fugitive status, his citizenship was only revoked in May 2023. Initial delays were due to insufficient evidence, prompting the Ministry of Interior to contact Interpol for more information in March 2023. This information ultimately led to the Ministerial Council’s decision to revoke Low’s citizenship.
Unwilling to accept the decision, Jho Low, supported by a large legal team, has appealed to the Supreme Court. The investigation’s conclusion and the court case’s outcome remain pending.
Low is accused of embezzling over $4.5 billion from Malaysia’s 1MDB fund in 2015 and siphoning the funds to his own accounts. He denies any wrongdoing, and his current whereabouts are unknown.
Low gained attention in Cyprus by using funds wired by Deutsche Bank to buy the Ayia Napa villa, through which he acquired his Cypriot passport.
The staff at the Limassol District Town Planning Department are scrambling to clear a backlog of thousands of planning permit applications as the deadline for local government reform approaches.
The reform, which will transfer planning authority to the newly established Limassol District Self-Government Organisation, has led to a surge in applications, with approximately 3,500 currently pending.
The department’s district director, Iraklis Achniotis, acknowledged the department’s increased workload. The priority is to process existing applications while handling a steady stream of new submissions. Public anxiety about the reform and a rush to secure approvals before the transition are major factors contributing to the surge.
“People fear the unknown and want to ensure their applications are processed under the current system,” Achniotis explained.
The pending applications highlight Limassol’s ongoing investment boom across residential, tourism, commercial, and other sectors, reinforcing its status as Cyprus’ leading business hub. However, the influx has placed significant pressure on department staff.
The transition to the District Self-Government Organisation is set to begin on June 10, following local elections. Achniotis expressed confidence in the progress, noting ongoing staff training for the new Licensing Directorate, which will be located in a building on Thalias Street near Franklin Roosevelt Avenue. He also confirmed that concerns raised by some Town Planning Department employees about the transfer have been addressed.
In addition to the backlog at the Limassol District Town Planning Department, another 1,000 applications remain pending with the Limassol Municipality, which currently holds planning authority. According to Phileleftheros, the Municipality is also experiencing a similar surge in applications.
The government has cancelled its contract with Kition Ocean Holdings for the Larnaca marina and port development project accusing it of breaching the terms of their agreement.
According to local media, the government acted on the advice of the Law Office, which viewed Kition’s refusal to renew the guarantee for Larnaca port as a breach of a critical contractual term.
Officials delivered the termination notice to Kition Ocean Holdings yesterday morning.
Kition reacted angrily to the government’s actions, expressing their “surprise” at what they called the government’s “disregard for the court process.”
“The government’s behaviour undermines the rule of law, which should protect investors,” they stated.
Kition emphasized that such respect is expected of a nation state and mentioned that their legal advisors informed them that the notice of termination is “in breach of the terms of the agreement.”
Additionally, Kition are “examining our legal options” after receiving the termination notice while already in court over the government’s alleged failure to uphold its side of the agreement.
They asserted that they have “always acted in accordance with the agreement and the law” and have been consistently “willing to proceed with the project” and resolve disputes with the government“in a constructive way.”
The mayor of Larnaca, Andreas Vyras, described the latest turn of events as a “negative development”, adding that “the Larnaca marina and port project is an important project for the city and Cypriot economy.”
Writing in the Cyprus Mail, Kyriacos Kiliaris, the Chief Marketing Officer at Danos International Property Consultants & Valuers, believes that the sky’s the limit for Larnaca despite the marina setback.
Larnaca is banking on multimillion-dollar projects already in the pipeline, with ample room for further development in large areas not yet included in any plans.
In recent years, following the Covid-19 pandemic, Larnaca has emerged as a key player in the real estate market, experiencing unprecedented growth.
The city is currently seeing robust activity in both investment and residential sectors, attracting foreign investors and locals in search of their dream homes.
This surge in demand is reflected in the escalating rental and sale prices across the city.
According to data from Danos International Property Consultants and Valuers, rental prices for one-bedroom apartments range from €500 to €600, two-bedroom apartments from €650 to €750, and three-bedroom apartments from €800 to €950.
These rates have doubled, and in some areas tripled, compared to 2019. Property sale prices have also risen significantly, with increases of 50 to 70 percent in the district.
In surrounding areas like Pervolia and Livadia, land prices have doubled. For instance, a plot in Livadia that cost €100,000 in 2019 now sells for €200,000. However, some villages like Alethriko still offer affordable options for those looking to build their homes.
Larnaca’s development focus spans various fronts, including the revitalization of the beachfront area in Dhekelia, once dominated by oil refineries. Private initiatives are actively promoting projects in Larnaca, particularly in the former refinery area and along Dhekelia Road.
The Petrolina Group’s ambitious Larnaca Land of Tomorrow project, with costs exceeding €1 billion, exemplifies the city’s growth potential.
In an exclusive interview with Phileleftheros, Kition Ocean Holdings CEO Oliver Corlette blames the Government for the impasse that threatens to derail the €1.2 billion Larnaca port and marina investment.
For the first time, the company publicly admits that the project is “at serious risk of failure,” indicating that if the differences are not resolved, the matter will be decided in the Courts.
Corlette reiterates that the company wants to execute the project and provides details on the amount invested to date and the changes they are requesting to make the project viable. “It’s not too late to save this project,” he notes, calling on the Government to engage in dialogue.
The company is criticised for collecting fees from the marina and port without performing any work. Since April 2022, what work has been done and how much money has Kition Ocean Holdings invested so far?
To date, Kition has invested over €30m of its own funds in the project. We have not stopped working even for a day. We are now ready to commence construction that will transform Larnaca into one of the most attractive new destinations on the Mediterranean.
This is a long-term partnership between the public and the private sector and in addition, it is a very complex project in terms of construction and in terms of size. The partners should go hand in hand and work together to face the challenges this project brings and adjust to current times. We feel there is no flexibility on the Grantor side.
The current blockages to the progress of the project are the direct result of the Government’s refusal to engage in discussions with us within a set timeframe which is outlined in the Concession Agreement. This is essential to proceed with the effective planning and implementation of the project.
Sadly, the huge efforts that we have put in, along with some of our partners in the Government, are now seriously at risk of failure as the Govt has taken on an intractable position on the issue of the O&M guarantee which is immaterial to the whole project. Simply put, there is a dispute over the amount of the guarantee (approximately €5m) and the Govt refuses to follow the clearly defined Dispute Resolution Procedure to resolve this disagreement.
Furthermore, the Government refuses to meet us to have a commercial discussion regarding the crucial matter of the challenges that the project faces. They have chosen to turn down any discussions and any chance of resolving the pending matters unless they are first satisfied with the guarantee but for the guarantee they also refuse to meet and resolve the calculation in a meeting. We are in a deadlock situation.
As a result of the Government’s actions, we have had to ask the Courts to intervene to protect our position. More importantly, the project is now close to failure because of the Government’s refusal to work with us to resolve the overarching challenges of the project.
We want to commence a robust commercial discussion to find a mutually agreeable path to resolving this. We do not want this impasse to lead to the loss for Cyprus of one of its largest investments.
We are still very keen to pursue this major infrastructure investment and have the funds available to start immediately but prior to that, we must have a serious commercial discussion, in good faith, to resolve these issues before we can start the works which are due to start in June.
Will the works for Phase A of the investment begin in June, or does this depend on the progress of your negotiations with the government?
We are fully prepared to begin the construction work in June. We are ready to select the main subcontractor, and we are submitting to the Government the construction contract for their approval.
However, as things stand, we are at an impossible impasse where the Government refuses to engage with us. This is essential to proceeding as we need to finalise the direction for the contractors so that the project can move forward.
Our discussions with the Government need to be within the prescribed timeframe of the Agreement so that they do not become prolonged and cause delays. Kition is only asking what the Agreement itself provides. This will increase the chances of resolving the disputes and start the project. We just lost a very crucial 3 months in which we could have already solved all the open issues should the grantor meet us in January.
The project’s progress is blocked by the Government’s unwillingness to commence discussions and by their public statements that they are considering terminating the Agreement. We were informed at the end of April that the construction permit is ready to be issued but that unless we pay close to 1M EUR within 30 days to get it, it will be cancelled.
We are ready to pay the permit fee, but it is not logical to take this step when there is such uncertainty created by the Government regarding the survival of the Agreement and when there are underlying issues that need to be resolved for the project to proceed. We greatly appreciate the enormous efforts the mayor and his team have put in to be prepared to move forward and we wish this could be replicated across the Government.
It is not too late to save this project and it is entirely in the Government’s hands. We are not setting any conditions for approval of our requests. All we are saying is that the Government should come to discussions to resolve the disputes. This is no more than the Agreement itself provides.
We believe the public deserves the full efforts of the Government to find a way forward given how important this project is to the town of Larnaca, how much employment this will generate, and that the Government has one of the strongest European real estate companies willing to back this transformational project right now. If we can get a productive dialogue and find a path forward, we can finally deliver on a project that the people have been waiting for 20 years.
We fear that by terminating the project now the government will create an additional few years delay for the project and will find itself in a much worse economic condition.
It is often stated that your request is to start with real estate and then proceed with the works on the marina and port. What exact changes have you requested as a company? Why didn’t you submit these change requests earlier, but only a few months before the project begins?
We will be starting with over €60m of infrastructure and approximately €45m in marina and port works before we even get to the point of delivering any real estate.! The actual plans that we have proposed and the requests we have put forward have no impact on the delivery of the town infrastructure that Larnaca has been waiting for years to see.
Our final plans were submitted to the Government on 31 January 2024 asking for a meeting to discuss these changes we are proposing. However, we have already communicated to the grantor that changes must be made more than a year ago. The point is that the market continues to deteriorate, and adjustments are needed to adapt to the current situation. Nevertheless, had the Government started discussions in February, we would have been done by now and we would have been able to proceed as planned.
The requests we have put forward simply move back the delivery of some parts of the marina and port which align with the overall market growth, but do not affect the nature of the project nor do they affect the financial position of the Government negatively. In fact, they improve the Govt’s financial return from the project considering that this is a partnership between KITION and the Government, with the Government sharing up to 60% of the profits with the company, we believe the Govt should act in the best interests of the citizens by supporting our initiatives.
The specific nature of the requests does not impact the long-term obligations of the company under the Concession Agreement. The Master Plan will be delivered almost in its entirety in accordance with the Concession Agreement and only some obligations in the First phase will be extended time-wise.
What we are proposing will allow the project to grow organically and sustainably with parallel development of the infrastructure and the real estate. Our requests are reasonable and are in line with the Agreement, the EU Directive on Concessions, and the national law.
The only reason we ask to allow us to move forward a small part of the real estate is to slightly cover the significant increase of several hundred million euros in the expected costs of this project which occur in the last 2.5 years. We commit not to take out any funds from the project before we complete the infrastructure and, in any event, the government is getting up to 60% of the profit from the project.
The Audit Office has initiated an investigation, which clarified that according to the contract signed, changes in the mandatory works at the port and marina cannot be made, and despite the disagreement with the state, the works must begin in June. What is your position?
The requests we have put forward are compatible with the agreement, the law and the relevant EU Directive, they do not change the nature of the agreement and they benefit both parties. Larnaca will acquire a modern marina and a port and all the supporting buildings and infrastructure.
The law specifically allows for amendments to concession agreements because by their nature they are long-term commitments, and it is natural that changing circumstances will make it necessary for adjustments. In our opinion, any independent third party would consider our proposals reasonable.
Some wonder how it is possible for a giant like Aroundtown to negotiate over a few million of the guarantee while preparing to invest €1.2 billion. This, combined with the €2.4 billion losses announced by the company last March, raises questions about its financial capability to execute the project. How do you respond?
The majority shareholder is one of the largest real estate companies in Europe, traded on the Frankfurt Stock Exchange with over €2.9bn of cash on its balance sheet, so it can easily fulfil its obligations for this project.
So far, our shareholder has invested over €30 million to date, while the entire project is estimated to cost somewhere in the region of €1.2 billion invested over a period of 15 years. This is a substantial investment, and it is essential for both the Company and its partner, the Government, to work hand in hand to materialise the project.
The government’s recent statements that it is examining the termination of the agreement and its refusal to engage have raised concerns in the company about the Government’s commitment to the project. Kition is ready to put the guarantee.
It is the government which is refusing to meet for one day and discuss what is the amount. We have been chasing them since the beginning of this year even before the old guarantee elapsed but they refused to meet and discuss the amount. We really don’t understand their rationale for considering terminating such a project when they can solve all their issues through a short meeting.
Very importantly a successful outcome to resolve this dispute will send a signal across Europe that Cyprus is the place to make major investments – many international investors are watching closely this case.
If your requests are not met after negotiations with the state, what will you do? Is there a possibility that you might abandon the project?
We are still hoping that through dialogue with our partners in the Government, pending matters will be resolved, and we are actively working towards this so that the project can move forward. We are submitting the main subcontractor’s details and the proposed agreement for approval by the Government.
It is in the Government’s hands to give this project a chance. If the disputes are not settled through dialogue, within the framework of the Concession Agreement, the matter will have to be decided by the Cyprus courts.
Why was Larnaca not included in this year’s maritime connection with Greece? Are there other planned cruises at the port, and how has the crisis in the Middle East affected their reduction?
Larnaca was not included this year in the maritime connection with Greece due to the strong decrease in demand. Even though we offered a competitive price it was decided for the connection to remain in Limassol.
The crisis in the Middle East has definitively had a negative impact. Thus far we have had cancellations of 30% of cruisers this year, so we expect 10 vessels during this summer period. Compared to other locations this is milder, so we are thankful it has not been worse.
We continue to work with our Cruise Ship industry consultants to develop new business opportunities in the cruise ship sector.
Limassol had the highest percentage price increases year-on year for both apartments and houses at the end of the first quarter of 2024, according to a report issued by Cypriot fintech Ask Wire.
Ask Wire reported that across Cyprus, on an annual basis, prices increased by 6.3% for apartments, 2.1% for houses, 3.0% for offices, 0.4% for retail, 3.6% for holiday apartments, 1.0% for holiday houses, and stable for warehouses.
Overall, on a quarterly basis values increased by 0.8% for apartments, by 0.4% for houses, by 0.2% for offices and 0.5% for holiday apartments. Prices of retail, warehouses and holiday houses remained stable.
In terms of prices, Limassol has the highest percentage increase for both apartments and houses.
In terms of rental values, compared to Q1 2023 there was an increase of 9.3% for apartments, 6.4% for houses, 4.2% for retail, 8.2% for offices, 5.9% for holiday apartments and 3.4% for holiday houses. There was a slight decrease of 0.6% for warehouses’ rents. On a quarterly basis rental values increased by 0.9% for apartments and remained stable for the rest of the properties.
Pavlos Loizou, CEO of Ask Wire, commented that “geopolitical tensions and unrest in the region continue to influence overseas real estate demand, accelerating the pace at which prices are affected. Additionally, high mortgage rates are likely to persist, diminishing local’s buying power and stabilizing market prices as demand adjusts.
“Moving into the second quarter of 2024 and beyond, we expect property prices for opportunistic investments to decelerate. This combination of high interest rates, increasing construction costs, and regional unrest could significantly impact the market’s stability and influence investment decisions in the long run.”
For a breakdown of movements in sale and rental values by district, click here.
Property Type
Prices
Rents
Apartments
0.8%
0.9%
Houses
0.4%
0.0%
Commercial
0.0%
0.0%
Warehouses
0.0%
0.0%
Office spaces
0.2%
0.0%
Holiday apartments
0.5%
0.0%
Holiday houses
0.0%
0.0%
Source: Ask WiRE – Across Cyprus: Quarterly percentage change in property values (Q4 2023 with Q1 2024)
Property Type
Prices
Rents
Apartments
6.3%
9.3%
Houses
2.1%
6.4%
Commercial
0.4%
4.2%
Warehouses
0.0%
-0.6%
Office spaces
3.0%
8.2%
Holiday apartments
3.6%
5.9%
Holiday houses
1.0%
3.4%
Source: Ask WiRE – Across Cyprus: Annual percentage change in property values (Q1 2023 with Q1 2024)
The Limassol Municipality is expected to issue a building permit by the end of May for the Aura project, which is poised to become Cyprus’ tallest building at 181.5 metres with 44 floors.
This skyscraper will be constructed on the former site of the ERA Olympia shopping centre. Investors are finalizing agreements to meet compensatory measures set by the Municipality, which include providing over 300 public parking spaces and dedicating ground floor space for a municipal art gallery (with commercial use still under discussion).
Additionally, a €214,000 compensation payment will be made following a Council of Ministers’ decision to unify underground spaces with a public road.
Once the agreements are finalized, the project will be presented to the Town Planning Committee and then to the Municipal Council for permit approval. Sources confirm the permit will be issued before the upcoming local government elections.
Designed by Foster + Partners with support from international and Cypriot consultants, the project aims to create a modern, environmentally friendly tower that integrates seamlessly with Limassol’s urban environment.
The base of the building will feature landscaped gardens, a public square, and an urban park.
he 24-metre-high residential section will appear to “float” above these features, while the building’s design ensures unobstructed sea views for all apartments from the seventh floor upwards.
