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Banks flooded with seized properties

February 11, 2019 at 10:37am
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Banks in Cyprus have seized over 14,000 properties from businesses and households either against debts or through foreclosures or through a partial sale to a fund.

Because debtors are unable to meet their obligations, non-performing loans have brought upheaval and as a result more than 14,000 bankrupt properties – commercial, residential, tourist, small apartments, small shops, farmland – are now set to change hands with the new owners being either local or international players in real estate.

A system has developed around funds and companies managing red loans starting from real estate consultants/real estate evaluators and reaches networks of real estate agents ready to sell off properties.

Bank of Cyprus has the largest such portfolio and the market’s best prime location properties of all types – all from non-performing loans.

In the Bank of Cyprus Real Estate Management Unit (REMU) portfolio there are currently 3,008 properties of small or high value, of all types of real estate.

In addition to properties exchanged for debt write-offs, there are an additional 9,065 given to Apollo Global Management as part of the sale of loans with collateral.

Plus, there are hundreds of others which are now in the process of foreclosure because of the inability of debtors to pay back their loans.

Indicatively, REMU’s portfolio includes the Gladstone Residence, a luxurious bloc of residential units located in the heart of Nicosia, on the riverbank of Pedieos, bordering the park of Prodromos. The selling price is €9.75 million.

Moreover, a luxurious house which is part of “The Residence” development in Limassol’s Saint Raphael area is now up for sale by REMU at the price of € 9.7 million.

Hellenic Bank’s prime location properties

Hellenic Bank also has appealing properties in its hands. More specifically, these are about 650 in number with the lender taking possession over debt. They are now up for auction.

Indicatively, a property consisting of three adjacent continuous commercial plots of land on Limassol Avenue with tremendous commercial development potential can now be merged to form a single entity of 8.094 square metres.

Variety in Altamira

Altamira also has in its possession a number of very appealing investment and residential properties. For the period of January-August 2018, 1,389 properties with a total market value of 185 million euros have been taken over by Altamira.

Its portfolio includes a three-storey building in Strovolos, on Prodromos Avenue, whose selling price is € 4,52 million.

Another appealing property for sale is a commercial plot of 802 square meters on Pindarou Street at a selling price of €2 million. As well as a commercial building of 1.714 square meters in the village of Aghios Nikolaos, Larnaca, which is now on sale for € 3.2 million.

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Altamira properties looking for buyers