Stavros Caramondanis: “High Standards:The Ambitious Ayia Napa Marina Project”
The southeast coast of Cyprus recently witnessed the start of construction works for one of the largest infrastructure projects in Cyprus, the Ayia Napa Marina, at a cost of 220 million Euro (€ 220,000,000). The CEO of M.M. Makronisos Marina Ltd, Mr. Stavros Caramondanis, shared his insights into this unique complex in a recent interview.
Tell us about your involvement in this project from the start…
The privatization of marinas in Cyprus first began in 1996. Our company, which was founded in Famagusta in 1959, stands as a pioneer in promoting private projects and my father, Gerasimos Caramondanis, played a great role in this from the beginning. With mechanical and electrical engineering at the company’s core, we stand proud as the largest engineering company on the island, while also investing in a variety of other projects. Beyond our operations in Cyprus, we enjoy a strong international presence, and more specifically in Italy, Greece, Morocco and China.
We were always looking to expand, so we participated in the first tender for the Larnaca Marina in 2002, but we withdrew from the project once the government opted to combine the Larnaca marina with the Larnaca port. When the Ayia Napa Marina project materialised at a later date, we knew from the start that we wanted to be a part of it. In 2012, we signed the contract with the prospect of finding investors, and in 2013, we met Mr. Naguib Sawiris, a renowned investor who is involved in various projects worldwide. He has always been fond of Cyprus and fell in love with this particular project. Our families enjoyed a great chemistry; we always believe in a clear and transparent understanding between partners, which in this case has been in place from the beginning. He decided to proceed with this project, which we would not have otherwise been able to do alone.
You were really lucky to meet such a person as an investor.
I would agree partly with you, as I think it was a combination of timing, preparatory work and a little luck, of course. A lot of Cypriot entrepreneurs; if they have a new project coming up, instead of trying to invest to make the project mature, to show their commitment, they will be waiting until they find an investor to take care of everything.
Will this be the biggest marina in Cyprus?
At the moment, the Limassol Marina is the biggest on the island (with 1000 berths), while the Paphos Marina will also be a 1000-berth marina. Our marina is smaller in size (600 berths) due to limited land given to us by the government. However, it is going to be totally different to the rest, boasting outstanding design and the highest quality of materials; with a great emphasis on luxury and more open spaces. It will only fit 29 houses, but they are all set within extensive grounds; the smallest plot is 650 sq. m. We managed to get approval to develop high buildings, and we introduced two twisting towers, which are very impressive. Furthermore, for the architecture, engineering and planning we work with SmithGroupJJR, one of the three largest companies in the U.S.A. in this field.
We are setting very high standards with exceptionally elegant design, while also placing great emphasis on meticulous landscaping. But it is crucial to note that prices remain very attractive, as we hold a firm belief that we need to be fair to the buyer.
How do you think this marina will affect all regions?
The entire region of Ayia Napa enjoys a reputation as the top tourist destination in Cyprus, but unfortunately, to date, this area lacks adequate infrastructure, with no ports or airports. With the completion of this new project, Ayia Napa is set to become a far more attractive destination, with the upcoming marina standing as the first infrastructure project in the area, raising tourism standards considerably. Some would say that this is not wise, but I would say it’s the ideal opportunity to offer a very high-end product to high-end visitors, helping local businessmen, hoteliers and restaurateurs to also upgrade their standards. The local authorities are also interested in upgrading the tourism services of the area and this project gives them the opportunity to do so.
When are you planning to finish the first stage?
We have just kick-started works at the marina and are planning to complete the marina infrastructure and commercial area by June 2019. We will simultaneously be building the towers and some of the villas, while the entire project will be completed in 2020-2021.
How do you think this project affects the image of Cyprus as a nautical destination?
The fact of the matter is, in order for Cyprus to create and promote nautical tourism, one marina does not suffice. Boaters need to have a wide choice, so this project will definitely complement the Limassol Marina and bring more people to Cyprus. I hope that the Paphos Marina will be strategically set-up, enjoying a prime location on the west side of the island, especially for those travelling back and forth between the Greek Islands. The first stop for boaters in this case will be Paphos, then Limassol and then Ayia Napa. The same rings true for boaters coming in from the east, who will first stop off in Ayia Napa, and then go to Limassol and Paphos marinas. It is very important for boaters to enjoy several stops for any occasion.
What will be offered to the residents in the marina?
We wish to provide a wide array of choices for both owners and visitors. We are building two private clubs on the beach; one on the west side of the marina and another on the east side. One will be only be accessible to residents and boaters. The other club will be open to the general public. As for the commercial and entertainment aspect, the marina will be home to a beautiful piazza, a concert hall, restaurants, shops and much more.
What is the status of investment in the property at Ayia Napa Marina? Is it leasehold?
The real estate is sold for 125 years and is leasehold. As you may know, all marinas in Cyprus are PPP (private public partnership) and the property is given in leasehold for 125 years, as the land belongs to the government. The benefit for the buyers in this case is that they don’t pay VAT on leasehold properties and this gives them a 19% saving. After 125 years, one has the right to renew the contract.