Sale of Shacolas properties part of BoC’s property fund strategy


By Stelios Orphanides

The recent acquisition of three properties from the Shacolas Group appears to be connected to the creation of a company that will manage commercial properties likely to be announced by Bank of Cyprus in the coming days.

There is reasonable cause to assume that the sale of the properties, “is part of the creation of a real estate portfolio for a Cyprus Stock Exchange (CSE) listing, Yiannis Telonis, a former senior manager at Hellenic Bank said in a telephone interview. “Because they are large chunks, their value is timeless and will offer significant return”.

The largest Cypriot bank’s chief executive officer, John Hourican, said on November 21, that as part of the lender’s efforts to reduce non-performing loans it was planning to register the real estate fund as an alternative investment fund (AIF) as part of a listing on the Cyprus Stock Exchange.

On February 8, Woolworth (Cyprus) Properties, a member of the Shacolas Group, announced the sale of the Shacolas Tower on Ledra Street, the Super Home Center (DIY) department store in Strovolos, and Debenhams Apollon in Limassol, for a consideration of a €44m.

A source said the fund, that will manage assets worth €190m, will be a “self-managed” company seeking to create revenue from the administration of commercial properties.

Participation in the fund will be restricted to “institutional and other well-informed investors” and as its share will not be traded to retail investors, no prospectus issue is planned, the source said.

“The fund will manage a certain amount of properties and as things stand, it is not going to buy other properties,” the source continued, adding that profit for investors in the fund will result both from the revenue from leasing the buildings as well as via capital gains from the sale of administered properties.

“Bank of Cyprus’s business is not property management and the reason behind their acquisition is related to certain (loan restructuring) arrangements,” the source said. The bank’s stake in the fund will show in its balance sheet as a participation in a subsidiary and not as illiquid real estate assets.

The bank is struggling with a non-performing loan mountain of €9.7bn or half its loan portfolio.


About Author

Stelios Orphanides is a journalist at To contact Stelios Orphanides: [email protected]

  • Bunny

    After the Mall of Cyprus sale, and now this, one wonders whether Shacolas is a good investment.

    • SuzieQ

      I wonder whether anything is a good investment in Cyprus?

      • Bob Ellis

        Envelope manufacturing.

        • SuzieQ

          Of course—it slipped my mind!

  • Vladimir

    “Because they are large chunks, their value is timeless and will offer significant return” hahahahaha
    What kind of return are you, scammer, talking about? ))))))
    I know many investors and ALL OF THEM regretted about their investments in Cyprus sharing info with the rest of the world to keep them safe

  • Vladimir

    If the so-called “large chunks” offer “significant return”, why don’t you keep it for yourself?
    I think this: “The bank is struggling with a non-performing loan mountain of €9.7bn or half its loan portfolio.” answers my question in full! LOLLLL

  • Bob Ellis

    The usual suspects shuffling debt to try and get two minuses to equal a positive. Smoke and mirrors of the highest magnitude. There are €10 billion bad loans at the BoC, that we know about, with very little collateral to supporting thems. When will BoC admit to this ? the day they close the doors ?

    • Vladimir

      Even then Cypriots won’t stop bluffing… it’s their nature…

  • Mist

    Shacolas not give up the casino , they know what is worth most.

  • PEP

    Very poor grammar, Stelios. Should read “Bank of Cyprus’ business” NOT “Bank of Cyprus’s business”

    • Cydee

      The English apostrophe is a difficult little b#gger, even for native Brits.

  • GSP

    Why does the BoC think they can sell these properties?
    Shakolas couldn’t find anyone daft enough.