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Cyprus golf & country resort at Tersefanou

Editorial
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The Board of Directors of Medgolf Group of Companies would like to release the following statement regarding the true facts and current status of the Medgolf Larnaca Golf Resort and Country Club, located in the Tersefanou area.

The companies of the Group are privately owned and their shareholders are highly professional, successful and dedicated individuals involved in a variety of projects, including the Medgolf Larnaca Golf Resort and Country Club.

It has always been the Group’s policy to keep all the information regarding the above mentioned project within the Directors and their close associates and partners. However, due to misleading information from recent press articles and various forums, The Medgolf Group takes this direct initiative to publicly set the correct information.

Our Group has secured and acquired an area of 1,515,224m² of land in the Tersefanou area solely for the development of the Medgolf Larnaca Golf Resort and Country Club. The title deeds of all the plots are registered to Medgolf Properties Ltd and Medgolf Investments Ltd; member companies of the Medgolf Group.

Our initial communication with the relevant Governmental Departments and preliminary application for the project was in 2004. The same year we appointed a team comprised of some of the World’s best professionals, from Resort Master Planners to Golf Course Architects, listed below, as well as other reputable, international and local consultants.

Consultant Type
Wimberly Allison Tong & Goo (W.A.T.G) Master Planners
Economic Research Associates (E.R.A) Feasibility Study & Market Research
European Golf Designers (E.G.D) Golf Course Designers
SCAPE Design Associates Landscape and Irrigation Architects
Enviroplan Environmental Consultants
PriceWaterhouseCoopers Auditors

In 2006 approval for the specific usage of the land was obtained and our primary Master Plan and Environmental Impact Assessment were deposited to the relevant authorities. Due to further land area requirements by the Government a secondary Master Plan was produced.

On the 31st of October of the same year the Medgolf Properties Ltd entered into an agreement with PGA Golf Management Ltd for the management and operation of the Golf Facilities.

In 2007 we received approval from the Water Development Department to proceed with the construction of our own Desalination Unit (for this reason the group acquired the necessary plot of land near the sea). Soon after that a revised and comprehensive Environmental Impact Assessment for the Resort and the Desalination unit was completed and deposited to the Government, along with an essential Traffic Study.

In June 2007, our Group was granted the licence to apply the PGA National brand exclusively to the Golf Academy of the resort and to be known as “The PGA National Golf Academy of Cyprus”.

In March 2008 the detailed Technical Master Plan of the project was completed and deposited to the Town Planning Authority for final approval. However, unless the Environmental Committee approved the Environmental Impact Assessment for the Golf project and the Desalination Unit, the Town Planning Authorities would not proceed with the Master Plan’s final approval.

A breakthrough came in December 2008 with the official approval of the environmental impact assessment of the golf project and its desalination unit. The final official Town Planning Approval is expected within the next months.

It has been a long and tedious procedure to obtain full licensing of the Medgolf Larnaca Golf Resort and Country Club, a delay well worth waiting for a project of this nature. Our directors and associate consultants are dedicated to this project and they are putting every effort into making this dream resort a reality in the very near future.

The Medgolf Group head offices are situated in Tersefanou and our website will be launched soon. For further inquiries please contact us at [email protected] Board of Directors, Medgolf Group of Companies.

Press release issued by The Medgolf Larnaca Golf Resort and Country Club Larnaca, February 4, 2009

Postscript

The PGA terminated its relationship with MedGolf Properties in January 2014.

Property group gets grant from British High Commission

Editorial
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The Cyprus Property Action Group (CPAG) has received a grant towards computer equipment expenses from the British High Commission in Nicosia.

CPAG receiving grant from British High Commission
L-R British Consul, Claire Lawley; CPAG co-founder, Denis O'Hare receiving the cheque from; Deputy British High Commissioner, Brian Olley; CPAG co-founder and elected Peyia Councillor, Linda Leblanc.

Ms. Lawley said “The British High Commission is very pleased to recognise the splendid efforts of CPAG in supporting many British people and other nationalities, including Cypriots, with their property problems. With the growth of the British Community on the Island, the aim of the High Commission is to help people to help themselves. CPAG is a shining example of what can be achieved by a group of dedicated volunteers. We wish them every success in their endeavours.”

Mr O’Hare in turn stated that CPAG were most grateful for the superb ongoing support they receive from the British High Commission, especially their public endorsement of CPAG which adds significant weight to the group’s credibility.

The presentation took place following an event hosted by Caroline Flint MP, UK Minister for Europe, on her recent visit to the island. During her visit Ms Flint also presented a donation of €50,000 to the ongoing mine clearance effort on the Green Line.

Editor’s Comment

Certain parties in the free areas of the Republic have hinted that the Cyprus Property Action Group is a covert organisation supported by the Turkish occupation forces. Whether they’ll now be foolish enough to suggest that the British High Commission is also being supported by the Turkish forces remains to be seen.

Gullibles travels in Cyprus: The overseas property exhibition

Nigel Howarth
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Gullibles travels in Cyprus: The overseas property exhibition

Lemuel Gullible is an ordinary sort of bloke who’s recently come into some money. He’s often fancied himself as a property investor as he knows this will earn him plenty of kudos with his mates down the pub. He read about an overseas property investment exhibition at the NEC in Birmingham and decided to visit to see what was on offer.

At the exhibition there were companies selling properties in Canada, Croatia, Montenegro, Bulgaria, Costa Rica, Slovenia and many other countries, including Cyprus. Gullible hadn’t heard of many of the places and he wasn’t too sure where some of the countries were.

But he’d heard about Cyprus from one of his mates at the pub who went there on holiday with his family a couple of years ago. They really enjoyed themselves and came back lovely and brown.

Gullible thought to himself “If I buy something in Cyprus, I’ll be able to rent it out to my mates and other people – I could make quite a bit of money“.

At the property exhibition

Gullible headed straight for the largest stand. “I’ve heard of this company, I’ve seen them on the TV,” he thought to himself “they really know what they’re talking about.“

He picked up a brochure, opened it up and started looking at the pictures and reading about the luxury holiday apartment developments with swimming pools, health clubs, saunas, golf courses, and panoramic views of the Mediterranean. “These look fantastic!” he thought to himself.

Gullible meets Adrian the young executive

Within seconds a sharp-suited young man wearing a badge “sales support executive” button-holed Gullible. “Hello, I’m Adrian. How can I help you?” Gullible thinks “This lad has done very well for himself – an executive in a big property investment company – he must know what he’s talking about!”

Adrian takes Gullible to one of the desks where he fills in a form about what he wants to buy, how much money he’s got to spend, what the property will be used for and whether or not he needs a mortgage.

“Interested in Cyprus? Right…” says Adrian. And with that he unfolds a map of the island on the table and starts jabbing at different places with his finger. “Looking for a jet-to-let? This is where all the intelligent money’s going“.

Airport, marina, golf courses and Disney theme park

Adrian draws a red circle on the map around Paphos. “There’s a new airport, a marina and they’re building fourteen golf courses and a Disney theme park. Our holiday apartments are selling like hot cakes – we can’t build them fast enough!” Gullible looks impressed.

Buy off-plan and make a profit

Adrian continues “Buying ‘off-plan’ means you can buy a brand new apartment at today’s prices. If you wait until they’ve been built in 12 to 15 months time, prices will have gone up by 25%. And buying new means you’re not paying over the odds for a resale with a lot of damp and other problems to sort out.”

Adding “When you take delivery of the apartment you can sell it if you want and make a 25% profit on your investment. We can help you with this too.”

The legal system

Gullible looks even more impressed. “How easy is it to buy in Cyprus?” he asks. “It’s very easy.” answers Adrian “The laws in Cyprus are the same as the UK and our lawyers will do everything for you. It’s all part of our service”.

Problems?

Gullible asks Adrian “I’ve heard that many people have a lot of problems with their properties in Cyprus. Can’t get their Title Deeds or something?”

Adrian reassures Gullible “We have a permanent team of specialists on the island and they’ve done a lot of research. We only work with selected property developers and lawyers that we know we can trust. With all the problems in Cyprus we have to be very careful who we deal with. Don’t worry, we’re a big company with thousands of satisfied customers. You know you can trust us.”

Guaranteed rental returns

Adrian tells Gullible “We offer guaranteed rental returns through our rental agency and we make sure the apartment’s inspected regularly and kept in tip top condition for your clients.”

“Clients” thinks Gullible. “I’m going to have clients?” (By now he’s feeling quite important). “So which is the best development to invest in?” he asks.

Adrian jabs his finger (somewhat vaguely) at a village near the coast. “This one” he says. “You need to invest in an apartment near the sea. If you buy something a few miles inland, your rental income isn’t going to cover the cost of your mortgage – the rents there are much lower and there’s not a year round demand.”

Inspection flights on special offer

Gullible spots a sheet of paper advertising “Inspection Flights – Special Exhibition Offer if you book today! Only £150 reduced from £275“. He picks it up and reads it carefully.

Adrian tells him “This is a special 3-day business trip to look at property – there’s no pressure to buy. From the information you have given us, we’ll draw up a portfolio of properties that will interest you. The package includes flights, transfers, accommodation, and advice from property investment specialists and our lawyer. When would you like to go?”

Gullible replies “I’m not sure I can afford it at the moment, but maybe in six months or so“.

Adrian shakes his head “In six months time prices will have gone up by 20%,” he says “can you really afford to wait that long?”

“You’re right.” said Gullible “Can my wife come as well?”

“Of course she can!” replies Adrian “Just put her name on the form“.

Gullible picks up a pen and writes his wife’s name carefully on the form – “Eve Anne Moore Gullible.”

“Thank you,” says Adrian. “You can keep the pen. We’ll contact you after the exhibition closes with details of your inspection visit and a selection of dates for your visit. Thank you.”

“Thank you Adrian,” says Gullible. They shake hands and Gullible goes home to tell his wife about their forthcoming visit to Cyprus and his plan to become an overseas property investor.

To be continued…

Published in a series of episodes “Gullibles Travels in Cyprus” plots the misadventures of Lemuel Gullible, an inexperienced property investor and his wife, Eve Anne Moore, in their quest to buy a jet-to-let holiday apartment in Cyprus.

Any similarities between this fable and “Gulliver’s Travels” by Jonathan Swift, a classic of English literature, is purely coincidental.

Scammed property buyers lobby Cyprus president

Nathan Morley
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After being rebuffed by police and ignored by a senior government minister a local property support group is hoping to find justice at the highest level.

Hundreds, and possibly thousands of residents are seeking help after being duped in what they describe as a “fraudulent despicable scam” involving local property tax.

The Cyprus Property Action Group (CPAG) has written to President Christofias to demand an immediate Presidential Review into why buyers, who they say have been defrauded by developers, have been refused police assistance.

The urgent action revolves around a CPAG claim that some developers have been falsely claiming that they have paid large amounts of Immovable Property Tax (IPT) to the Inland Revenue on behalf of buyers, but in reality only tiny amounts ended up in government coffers.

“In short, developers illegally charge buyers based on a percentage of the purchase price of their property, falsely assuring buyers that this is what they paid to the Inland Revenue on their behalf,” Denis O’ Hare from CPAG told the Sunday Mail.

“In truth the developer pays much lower amounts as the tax payment is based on the 1980 value of the developer’s site. This is why none of them will produce any justification and proof of payment when challenged by the intended victims. Moreover, they use the threat of withholding title deeds if buyers don’t cough up,” he added.

Immovable Property Tax is an annual tax payable by all property owners in Cyprus, irrespective of their residence status. It’s imposed on the market value of the property and owners are exempt from tax if this value is below CY£100,000.

CPAG also stated that they had first notified the government of the situation early last year, however for many, the lack of action or interest from the authorities has left them in dire straits.

“One 83 year old lady had been waiting for 28 years for her title deeds and had a demand for €25,000 in IPT charges on a house she bought for €60,000 with her husband, who had sadly passed away two years ago, and was now also in the probate trap. Another lady in her eighties also had a similar probate problem, so the inability to leave their property to their children was a major concern until this matter could be sorted out.”

CPAG wrote an urgent letter to the Chief of Police, Iacovos Papacostas back in May explaining the situation and requesting an explanation as to why these attempted frauds were not considered a police matter.

Having failed to receive a response from the police, CPAG were forced to call in help from the British Consul, who was told by police that the IPT scam was not a criminal matter.

“The police have provided not one single argument, legal or otherwise, nor any justification whatsoever as to why, in the police’s opinion, no crime has been committed. This practice is a crime under Section 298 of the Criminal Code – Obtaining Goods (or money) under False Pretences,” a CPAG spokesman added.

Many of those affected by the IPT scam are questioning the credibility of a police force which is fighting to save its battered image after a string of high profile blunders and scandals.

CPAG say that the failure of the police to address any of their arguments left them no option but than to bring it to the direct attention of President Christofias.

To add insult to injury, last November a senior Interior Ministry official effectively told property buyers they were on their own when it comes to being scammed on IPT by unscrupulous developers.

“Immovable property tax is payable by the owner of the property, and details as to payments by the buyer to the seller, regarding this payment, should be detailed or determined in the Contract of Sale between the two parties,” said the official at the time.

“This is not a matter where the state can intervene, but if a buyer feels that any term in the contract is abusive, this can be examined by the courts in the context of a civil action filed by the buyer against the seller.”

In view of the lack of interest so far on the part of the state, property analyst Nigel Howarth agreed with CPAG’s latest action, saying the issue was a great cause of stress to thousands of expats in Cyprus.

“The effect on buyers defrauded by this scam can be devastating. Many of them are elderly and living on low incomes, and to suddenly receive an ‘Immovable Property Tax’ demand from a developer for thousands of euros causes them significant worry, stress and financial hardship,” he said.

“They have come to Cyprus to enjoy their remaining years in the sun and many have neither the strength nor the will to make a stand. They hand over the money without question, not wanting to cause a fuss or rock the boat.”

Howarth said he was also seriously concerned that police had refused to act on the evidence presented by those affected by the tax.

“This IPT scam is endemic throughout the island; it’s harming people’s lives. The government is aware of it and so are the police. Why are they refusing to act?”

CPAG supporters have also been lobbying their MEPs in Brussels about property problems in Cyprus.

In a recent letter to the Ministry of Justice, Nigel Farage MEP, asked whether Cyprus was “a rogue state on the fringes of civilisation“.

Copyright © Cyprus Mail 2009

Cyprus Tourism Organisation denies snubbing Ryanair

Charles Charalambous
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THE CYPRUS Tourism Organisation (CTO) yesterday denied a report in the British press that it had not officially approached the budget airline Ryanair to convince them to fly to Cyprus.

“I don’t know why Ryanair is not flying to Cyprus at the moment, but it is certainly not because we have not been in contact“, CTO Director of Tourism Lefkos Phylactides said.

Phylactides added: “We are keen to offer as much help and support as we can to any airline, but we are operating under EU restrictions. Perhaps Ryanair wanted something more substantial than what we are allowed to offer.”

OPP Magazine reported that Ryanair was not ruling out flying to Cyprus in 2009, but said it had not yet been officially approached by the country’s tourism authorities to make it a reality. In 2008, Ryanair said it was unwilling to fly to the island until Cyprus’s relatively high landing charges were dropped. Plans to reduce aircraft landing fees were included in the government’s recent announcement of its €300m rescue package targeting the property and tourism sectors.

Bernard Berger, the budget airline’s director of route development, was quoted during a trip to Cyprus in 2008 as saying: “We are a business. You [Cyprus] need us to come here. We don’t need to come to Cyprus. We are doing very well thank you.”

CTO Marketing Director Michalis Metaxas said that contact with Ryanair began two or three years ago “as the result of our own initiative.”

A number of meetings took place over the course of about twelve months, involving detailed discussions with senior government representatives, including the Tourism Minister.

“We listened to their requirements, but these turned out to be prohibitive, and not covered by any EU-approved scheme“, said Metaxas. As a result, these “exploratory meetings” ended about 18 months ago.

The CTO has now finalised its Air Route Development Scheme (ARDS), which was given the green light by the EU in April 2008. The new scheme applies to all European airlines, not just low-cost carriers.

CTO Director General Phoebe Katsouri said at the time: “It’s a start-up scheme for new routes, designed to connect Cyprus with new European destinations.” A crucial aspect of the scheme is that it complies with EU directives and regulations, which ban direct subsidies in the airline industry.

Under the ARDS, airlines can receive market support for between three and five years, in return for which they must commit to year-round flights to Cyprus.

“It’s a joint effort. They will be risking and investing by committing airline capacity at considerable cost to themselves,” Katsouri said. “The CTO will be contributing its marketing efforts to support them. It is economic support, but it translates into market activities“, she added.

Metaxas said that, though now finalised, the ARDS has not yet been formally announced to airlines. “Expressions of interest will be invited from all airlines in around six weeks. Ryanair will be welcome to respond to that invitation.”

Copyright © Cyprus Mail 2009

Property supply outstrips demand

Nigel Howarth
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Yesterday, the problems in the Cyprus property market were discussed at a meeting attended by government Ministers, trade unions and other interested parties. The meeting heard that some 20,000 properties remain unsold and that a large number of others remain unfinished due to the dramatic decline in sales and worsening market conditions.

Chairman of Leptos Group, Michael Leptos, said that around 20,000 construction industry employees had already received their dismissal notices and, referring to a survey carried out among 90 companies, that 3,000 more will be dismissed by June. He also reported that there were 20,000 unsold apartments on the market, although he didn’t explain were his numbers came from. He urged the government to conduct a study to uncover the real size of the problem and the amount of money that the state is losing from unsold holiday homes.

In an effort to scope the extent of the problem the chairman of Land Developers Association, Lakis Tofarides, said that in 2007 the construction industry had a turnover of €2 billion and contributed some €500 million to state coffers. In 2008 property sales were down by more than half, while in 2009 sales will be less than a quarter of those achieved in 2007.

All of those attending the meeting agreed that the government’s proposals for strengthening construction sector must be adopted as soon as possible and that tax incentives must be offered to avoid a deepening of the crisis.

Editor’s Comment

Approximately 20,000 new properties are built each year in Cyprus. Given the current financial crisis and the dramatic drop in the numbers of properties being sold, it’s going to take a very, very long time to offload the 20,000 unsold properties on the market at the present time.

The fall off in property sales started towards the end of 2007, but rather than gearing supply to meet that falling demand developers continued to build aggressively throughout 2008 in spite of the worsening signs in the market.

It seems that the business model developers have been using to gear their production is fundamentally flawed and has resulted in a situation where the supply of property far exceeds demand. Only now do they see the error of their ways and are urging the government to bail them out.

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