The project was suggested in January, 2014 by ATUM Developments Ltd owned by Mr. Kenyeres. It reportedly featured hotels, a marina, residences, flats, restaurants, a mall, an art district, and a manmade island. The talks stumbled due to the negotiating committee appointed by the government to finalize the deal terms.
The impediment was caused by different views on the rent of the plot of state land involved: €10m of annual payment asked by the government versus €2m offered by ATUM.
The whole project cost is reportedly estimated to amount to €3.5bn. According to Daily Politis, the representatives of the state committee and the investor agreed to refer the issue to the professional valuers’ committee with the request to provide assistance in solving the problem.
The negotiating committee’s representatives are reported to be genuinely willing to reach a leasehold fee agreement that will be acceptable for both parties of the dispute which are going to use a common calculation method to complete the negotiations as soon as possible on mutually beneficial terms. The committee members insist on adhering to legality when seeking a compromise solution. The participants of this long-running conflict seem to start losing their patience.
Politis, referring to an anonymous source, cites the investor’s warning to begin looking for more acceptable options if the talks are not completed soon.
Archbishop Chrysostomos, who has leased the Church of Cyprus owned plot of land to the investors, shares this impatience, stating that if he were responsible for making a decision, he would have withdrawn from the talks. This remark is criticized by the Green party, which considers investors’ unwillingness to accept the government’s rate unreasonable adding that their offer to pay as little as €2m annually reveals their poor financial state and disability to implement the costly project.