Our newsletter is designed to bring to your mailbox a wealth of experience and news on acquisitions, project finance and direct investments.

We always appreciate your feedback, so please feel free to email us to share your thoughts, reactions, opinions. Suggestions for specific topics that you would like to be covered, are also welcome. 

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Stempl is a free smart-phone app, destined to make waves in the international loyalty-scheme, electronic coupon and targeted promotions markets. The App has been internationally tested for 12 months in the diverse markets of Norway, Cyprus. S. Africa, Malaysia and Indonesia and is already generating revenues. The company is now gearing up for a hard launch. Investment required is €600.000 out of which €250.000 has already been raised. A minority investment of €350.000 is still open to investors. Growth via international licensing is expected to be fast, with break-even projected in 9-14 months. Contact us for an Executive Summary.

Investments in Distressed Assets

Investors looking for distressed assets first came to Cyprus in 2013 just after the bail-in.  It was too soon. Now the time is ripe for both distressed property and distressed business investors. As outlined in the last section of this newsletter Cyprus Banks have now been recapitalized and are able to absorb huge write-offs, while the legal framework is finally in place for swift foreclosures. 

The range and type of deals that will be available cuts across the whole spectrum with the lion's share taken by property, hotels, import/distribution, retail and manufacturing.

We are already working on two distressed acquisitions one in the Printing sector and one in the F&B sector. But we can source any deal upon request, either directly from Banks or from Receivers & Managers.     

Small Businesses for sale in Cyprus (up to 5 Million)

A small sampler for individual investors from our business brokerage department

Discount Retail company with two retail shops and large warehouse. Well established and profitable. Excellent potential to expand throughout Cyprus or abroad with own stores or via franchising.  Existing warehouse can service at least two more shops. No debt, no creditors, no debtors - this is an all-cash business with turnover in excess of 1,6 Million and high profit margins. Asking Price €950.000, plus stocks at cost (ranging around €500.000). 

Olive Oil Press with modern centrifugal extractors, capacity 6 tons per hour. Business established for 20 years and located in a prime olive-growing region of Cyprus. It enjoys regular, steady clientele.  Good opportunity for someone involved in olive-oil trading to control supply & quality.  Asking Price for 100% sale is €660.000 which is the value of machinery, equipment & buildings.  75% sale also negotiable.

Licensed Corporate Administration Firm, very profitable with continuous and steady growth over the past three years. Sustainable and diverse international client base, highly professional & experienced staff.  Turnover over 1,5 Million, Asking Price 3XEBITDA.

Large Night Club built on a 1000 sq.m. plot. Indoor area 445 sq.m. with 700 persons capacity, outdoor garden/terrace area, also with 700 persons capacity. Luxury design, furniture and lighting inside and outside. Audio, video, climate-control and security systems alone cost over €750.000.  Parking for 500 cars. Very popular with locals and tourists, operates year-round (outside in summer and inside in winter). Asking Price €2.900.000 including the business and freehold property.

A Sampler from our direct mandates* and international referrals**

(All deals are confidential, information to be provided under NDA and subject to KYC)

Alternative Energy Projects including licensed Photovoltaic Parks in Cyprus and Romania offered for outright or majority sale. Tyre Pyrolysis Oil Plant, offered for minority equity participation.

Paulownia Tree Plantation Project in Romania. This tree grows very fast and is harvested in 5 - 7 years to yield about 0,5 cubic metres of quality timber per tree. IRR ranges from 14% to 22% under conservative and most likely scenarios, respectively.

Franchise of international cafeteria brand, franchisee is market leader in East European country operating 16 cafeterias including three within international airports, well established and profitable. Country franchise offered for outright sale.

Electromechanical Services Contractor in Qatar offers equity participation up to 50%. Company is fully licensed, pre-qualified by most State organizations and very well established in the booming construction market of Qatar.

Japanese-owned Plastic injection moulding factory in China, offered at "distressed" valuation for outright sale, due to political problems between Japan & China. Great opportunity for US/European buyer to acquire a state-of-the-art factory in China at a "half-price" deal.  

Chinese Manufacturer of EVA films for PV Panels offered for minority or majority sale. Turnover 150Mil, funding needed to expand internationally.

Large Hotel Apartment (800 beds capacity) in Cyprus, collaborates with prime European Tour Operator, offers up to 50% secured equity participation with guaranteed minimum ROI of 5% estimated ROI in excess of 6,5% with full security on property.

Belgian Meat Processing company, producer of sliced and diced meat products for outright sale (turnover 35M €)

* Direct mandates are written engagements between us and the client, no other intermediaries involved

** We maintain an international network of highly professional associates (local M&A Firms) in the UK, France, Benelux, Germany, Spain, Greece, China, Israel, Russia and USA.

Cyprus Rising from the Ashes

In our October 2013 Newsletter we stated that, by international consensus, Cyprus was expected to start recovering the second half of 2015. It's been one year since then and the IMF/ECB/EC projections remain unchanged. 

So, what's happened in the meantime?

Mainly, Cyprus has stuck to its commitments towards the "Troika" (IMF/ECB/EC) ensuring the timely disbursement of bail-out funds. But there are several other developments which justify optimism:

Cyprus Banks recently passed the ECB stress tests - primarily Bank of Cyprus, by far the largest local Bank, which had already raised 1 Billion from international institutional investors. Only exception was Hellenic Bank, but the small gap will easily be covered with a new capital increase. Actually, it seems that international Hedge Funds and PE Funds find investments in Cyprus Banks potentially very profitable. A good sign.

With the new Legal Framework on Non-performing Loans, Banks can now foreclose in months (until now it took years).  This will pressure large corporate debtors who opted for  a "strategic default" to pay off, or drastically reduce their loans. It will also help in re-pricing the property market and hopefully we will see property sales picking up again.  Painful, but necessary if we are to move on.

The Cyprus Tourist Industry remains strong, with even some improvement over previous years. The fact that Cyprus is a haven of stability and security in the Middle East helps a lot.

The high-end property market is doing very well, with demand from foreign corporations and very/ultra-high-net-worth individuals unabated.  On the other hand, sales of mainstream properties - mainly residential - have been boosted by the new  "passports for investments" scheme, but this will not substantially improve the overall property market in the near future.  Interest from foreign property investors for new projects is keen - recent example is Buena Vista Hospitality Group which announced that it will move its HQ to Cyprus and also invest $300 million in a new project. 

The Integrated Casino Resort licensing process has been launched with Expressions of Interest expected by March 2015 from several  international Casino Resort developers/operators. This is a $500 - $800 Million project, which will have a major impact on construction, employment, tourism and State revenues. 

The International Business Services sector has certainly taken some hits but, regardless of the problems in the Banking sector, Cyprus is still a prime international business jurisdiction - foreign corporations just choose to keep most of their funds abroad until trust in the local Banking system is re-established.

The Offshore Gas & Oil explorations in the Cyprus EEZ are proceeding, with ENI-KOGAS having started drilling in Block 9, despite provocations from Turkey.  In addition, Cyprus, Greece, Egypt and Israel are in discussions how to jointly exploit the natural wealth of the East Mediterranean basin. Cyprus seems set to become a strategic player in the energy sector.

Within this context, we have evidenced increased appetite from foreign investors. The main drivers for this demand are: 

1. The reduction in practically all asset values, coupled with the prospect of a recovery in the mid-term. This situation is attractive to both opportunistic and long-term investors 
2. Cyprus Banks have been recapitalized and are now capable of disposing, at a loss, non-performing assets
3. The lack of liquidity locally, which gives a tremendous advantage to well-capitalized investors
4. The growth of the local offshore oil & gas industry
5. The stability, security, strategic location, lifestyle and business-friendly environment Cyprus offers, in stark contract to most countries in the region
6. Favourable tax regime for both resident and non-resident investors.