The Mall of Cyprus on Friday announced the sale of its Annex 3 office building to Karakyr Properties Ltd, a member of the E-Cars Group, for €4.6 million.
It should be noted that Karakyr Properties was already the active tenant of the building.
According to the company, the board of directors had long considered Annexes 3 and 4, located next to the Mall of Cyprus, as non-core assets.
These annexes are primarily occupied by office and exhibition space tenants, while the mall itself focuses on retail.
Annex 3, an office building with a gross leasable area (GLA) of 2,330 square metres, generated a net operating income (NOI) of €383,500 for the financial year 2024.
Following the signing of a conditional sale agreement, the transaction was completed on Thursday, 27 February 2025, at the Nicosia District Land and Surveys Office.
The purchase price was settled in cash at the time of transfer.
The sale price was approximately 10 per cent below the asset’s book value as per the company’s financial statements.
However, the board deemed the transaction “fair and reasonable”, considering the current vacancy levels and short remaining lease durations.
The difference will be reflected in the company’s financial statements for the year ending December 31, 2024.
What is more, the company’s financiers, Alpha Bank and Eurobank, approved the sale and agreed to release the mortgage and lease encumbrances on the property.
They also waived the requirement for any portion of the company’s loan to be prepaid, provided the sale does not negatively impact the company’s ability to meet future repayment obligations.
Moreover, the Mall of Cyprus confirmed that no external consultants were hired for the transaction, which was conducted on a strictly commercial basis.
The board will determine the best use of the proceeds from the sale in due course.
