Filenews 1 July 2024 - by Chrysanthos Manoli
The Leptos Group was and remains synonymous with growth. In the real estate sector, in the hotel industry, in the operation of medical and university units and services.
The Group's developments are now dominated by large multi-storey and luxurious residential and office buildings in Limassol and Paphos, with an excellent level of accommodation, work and wellness services, which attract significant investments from Europe, Southeast Asia and the Middle East. At the same time, ambitious developments continue in Greece, from Athens to Crete and other islands.
Today, the soul of the Leptos Group, brothers George and Pantelis Leptos, answer questions from Forbes Cyprus about the intensive completion works of all the units that make up the emblematic Limassol Blu Marine project, the undiminished interest of investors in residential and office units, the new developments promoted in Limassol, Paphos and Greece, the dynamic and increasing the Group's participation in the fields of medical and educational units, as well as the intensive effort for the green transition, through energy saving in the developments of the Group's companies and the utilization or production of green electricity from photovoltaic parks.
At the beginning of the year, your Group announced that Limassol Blu Marine had also put up for sale the premises of the Zeus Tower Signature Collection. Was there the response you wanted? Where are you now?
Limassol Blu Marine is at the center of what is happening in the region, which we believe will be shaped as a new European Riviera.
It consists of 4 buildings, 2 residential and 2 office, with high quality services and facilities, such as 50 meters long outdoor pool, overlooking the sea, 25 meters indoor pool with large spa, high ceiling, large gym overlooking the sea and much – much more.
At Poseidon Tower, the last update we had, a few months ago, said that sales were at 75% of the available spaces. Has there been progress in the meantime?
We are very pleased today to have completely allocated the first office building and approximately 85% of the first residential tower, while we have several sales/reservations in the second tower.
We believe that the market will continue to embrace our work.
Are the majority foreign investors buying such properties or are there also Cypriots? From which countries is the most interest today?
While there are also Cypriot buyers, the majority of investors are foreigners from Europe, the Middle East, Israel, Ukraine, Russia and Southeast Asia.
We understand that both Limassol Blu Marine and Limassol Del Mar will provide many services within the infrastructure, to owners and residents, after purchase. So will it be continuous and permanent – and costly – for your Group to manage and take care of these projects?
As in Limassol Del Mar, our investors choose Limassol Blu Marine because they are looking for the best and therefore expect a high level of service. After all, it is the level of services offered that determines the quality of the project.
The owners through their management committee have the right to request additional or fewer services from the manager, who undertakes the processing on their behalf.
THE NEW DEVELOPMENTS TO COME
Are there any other projects from the Leptos Group of this category in progress? Can we have some timelines for your new deployments?
Our Group has developed over 350 projects and continues its development with many pioneering projects, such as Coral Seas, Adonis Beach Villas and Armonia Beach Villas in Paphos. These are also seaside residential villa projects, which are addressed to customers with extremely high demands. Now, as far as multi-storey buildings are concerned, apart from the Zeus building of the Limassol Blu Marine project, we are also planning the construction of the last building of the project, the Oceanus tower. This is a purely office development on the southeast side of the project, i.e. closer to the Limassol Marina beach.
THE LEPTOS GROUP AND THE HOTEL INDUSTRY
Regarding the traditional tourism sector and hospitality in general, what is the position of your Group companies today? Which hotels do you operate and what plans do you make for the near future or in the medium term?
This year, after the covid period, all the tourist units of the group are operating, namely Coral Beach Hotel & Resort, Thalassa in Coral Bay, Paphos Gardens and Basilica Resort in Paphos, as well as our hotel Leptos Panorama Hotel in Chania.
In the near future, the management of a new small tourist unit, with a capacity of 25 rooms, adjacent to Panorama Hotel, is being prepared and the permit for the construction of the expansion and final phase of the Coral Beach Hotel & Resort is also expected.
How are your investments going in Greece, in the tourism sector or in other residential developments? We understand that Greece's attractiveness in terms of tourism and investment is constantly increasing. How do you assess the course of the country and its economy today? And what other plans do you have for Greece?
The group's decision in 1998 to reactivate in Greece and expand its activities there was absolutely right. Today, the Group is developing projects in unique coastal locations in Paros, Santorini, but mainly in Crete, in the area of Chania, where the Group is based, while it is also planning the development of the major Costa Nopia project, a large complex development on a unique coastal plot of 1,200,000 sq.m.
In which other countries do you strengthen your investment presence as a Group?
Our Group is characterized by extroversion. He established and operates offices in many countries and cities, such as China, India, Dubai, Egypt, London, and Athens.
Through our offices abroad we attract investors for our residential and tourist units in Cyprus and Greece.
HOME OWNERSHIP AND HOUSING STOCK
In Cyprus, what is your companies' involvement in strengthening the housing stock for the housing needs of residents? There is talk everywhere of limited supply and high demand, which raises prices and limits the possibilities of home ownership. Do you think this will change soon?
What determines the prices of any product is supply and demand. Unfortunately, with the crisis of 2013, development companies stopped building projects and greatly reduced their activities. When demand returned, there was no stock of completed housing. This, along with today's increased costs, has led to an increase in the sale price of homes. We believe that the only way to reduce prices is to increase supply, which requires a collective effort by all stakeholders, namely development companies, financial institutions and the state.
THE UPDATE TO NEAPOLIS SMART ECOCITY
To what extent has the strategic planning for Neapolis been completed? Are there any plans or projects underway to further develop this state?
Due to the large size (890,000 square meters) and variety of uses of the project (University, Hospital, office park, residential developments, cultural and other projects) and consequently the gradual development time of the project, the strategic planning of Neapolis Smart Ecocity is updated and adapted to the current data and market conditions. For this reason, particular emphasis has been placed on the creation of modern office developments, which, in combination with the residential developments of the project, can serve the increased interest and demand from foreign companies wishing to operate in Cyprus.
The Health sector has recorded rapid growth in recent years, is this something you are interested in expanding in the provision of inpatient health services?
The Group is already active in the Health sector with the 20-year operation of the Iasis Private Hospital in Paphos, where we are constantly making further upgrades in personnel, equipment, technology and spaces. The Group's medical activities will be transferred within the Neapolis Smart Ecocity project, where the creation of a new, larger hospital with many similar health and care services is planned.
In addition, the Group established and operates since 2010 Neapolis University Pafos, the first university in Paphos, thus offering the corresponding academic, cultural and economic benefits to Paphos and Cyprus in general. Neapolis University currently offers 38 undergraduate, postgraduate and doctoral programs to approximately 3600 students annually and proceeds to a continuous increase in study programs, technological upgrading and expanded research activity.
As in the case of medical activities, the University's facilities will be gradually relocated within the planned space of 100,000 sq. m. meters of the campus of the university in the Neapolis project.
ENERGY SAVING AND GREEN ELECTRICITY
To what extent have your companies taken advantage of the technological solutions offered for green developments and electricity savings? Are you more broadly interested in the field of energy production?
Reducing energy costs and switching to more environmentally friendly solutions are an important pillar of our planning. In this context, we have proceeded and continue with the installation of less energy-consuming machinery/equipment, purchase of electricity from photovoltaic parks, etc. We are also considering the case of energy production to serve our projects.
Related to the issue is the recent announcement of a draft grant for energy saving, for the first time to large companies.
The problem that arises is that minimum overall indicators for reducing the consumption of the building are set as a prerequisite, which, as far as existing buildings are concerned, require major building changes, greatly increasing investment costs. Our view is that the subsidy should be given per category of measure taken, with a minimum consumption reduction indicator for this measure (eg replacement of chillers with less energy intensive).
WILL CYPRUS REMAIN ATTRACTIVE?
Are you optimistic about the course of the Cypriot economy in the coming years? Will satisfactory growth rates be maintained and consumption of all kinds will be kept at good levels for the business world?
The Cypriot economy records higher growth rates every year than the European Union and we believe that this will continue. Cyprus continues to have its comparative advantages. It is an island with culture, a member of the European Union and the Eurozone, with a high level of quality of life and health care, a democratic/liberal regime, many private schools, etc. All this, along with the good climate and various incentives announced from time to time by the Government to attract foreign investment, have made it an attractive destination for foreign investors who want to invest or move to Cyprus.
We believe that Cyprus will continue to be attractive and, regardless of any temporary effects due to the war in Ukraine and Palestine, Cyprus' economy will continue to grow and have higher growth rates than the European average, as we have observed in recent years.
What do you expect as entrepreneurs and as a strong group of companies from the tax reform that is under consideration?
Tax reform must take into account the current circumstances but also the changing – mainly due to external factors – economic environment, with the aim of increasing competitiveness, enhancing growth and promoting sectors of activity considered to have potential.
In addition, the reform should streamline the different tax treatment between Cypriot companies and companies operating in Cyprus, whose shareholders are not Cyprus tax residents, to eliminate the current unfair competition.
The main proposals are abolition of the deemed dividend distribution, reduction of the dividend tax rate, perhaps in combination with an increase in corporate tax, reduction of capital gains tax, permanent 50% discount on transfer fees, increase of tax loss carry-over period, compensatory measures for green transfer, etc.
Also, for further upgrading and development of the promising sectors of higher education and medical services, VAT should not be charged (or refunded) for the creation of facilities, purchase/upgrade of equipment, etc.
