C O N F E R E N C E. CYPRUS BUSINESS HUB: Let s Talk Real Estate

Transcription

1 C O N F E R E N C E CYPRUS BUSINESS HUB: Let s Talk Real Estate Amathus Hotel Limassol Cyprus 22 nd March 2017

2 Introduction The Cypriot economy is at a critical turning point after the emergence of Cyprus from the financial crisis. This situation has created an ideal circumstance for the country to capitalise on its unique position in terms of geolocation, European membership status and favourable business environment to attract long-term, prosperous investors from all over the world will be the start of a major shift in the banking and real estate sectors; thus, understanding these industry changes will be of utmost importance to all those affected by these dynamics. World Trade Center Cyprus (WTCCy) alongside Delfi Partners & Co. (DP) will organise thematic conferences under the brand "Cyprus Business Hub", focusing on the main pillars of the Cypriot economy, namely financial services, shipping, real estate, asset & wealth and tourism. The first conference will take place at the Amathus Hotel in Limassol on Wednesday, 22 nd of March 2017 under the title: "Cyprus Business Hub: Let s Talk Real Estate". The purpose of this conference is to stimulate interest in investments in the Cyprus real estate sector and to promote Cyprus as an attractive investment regional hub. The conference s key topics will include opportunities in real estate investments, the naturalisation scheme, Banks Real Estate Owned (REOs), and the creation of real estate Alternative Investment Funds (AIFs) and Real Estate Investment Trusts (REITs) in Cyprus. Key speakers and exhibitors will include the Cyprus Investment Promotion Agency, Ministry of Finance, Ministry of Interior/ Immigration Office, Financial Institutions, Funds & Investors, Developers, international and local Professional Services firms and Financial Institutions. Mr Mufid Sukkar Dr George Mountis Managing Director World Trade Center Cyprus Managing Partner Delfi Partners & Company 2

3 Organisers WTC Cyprus is a member of the World Trade Centers Association, and is fully integrated into a network of 320 World Trade Centers with 750,000 affiliated companies in 90 countries on six continents. WTC Cyprus services include: Business conferences & trade exhibitions, trade missions, consulting & market research, trade education and serviced offices with modern facilities. Delfi Partners is an advisory, real estate and transaction management partnership that combines rigorous economic thinking with a practical business approach. With presence in 4 countries, DP is a prominent advisory partnership in the region, supported by its Delfi Analytics platform, an innovative data, credit and compliance analytics service, helping corporate and financial institutions to make better informed investment decisions. Mr. Mufid Sukkar, Director of WTC Cyprus, remarked: The Cyprus Business Hub' collaboration gives us an additional platform to organise professional events that connect Cyprus businesses like the real estate sector with the international investment community, which we have privileged access to through the World Trade Center network. Dr. George Mountis, Managing Partner of DP, stated: We are very proud to be working with WTCCy. Our goal is to build long lasting relationships that will foster domestic and foreign investments, while reforming and improving the regulatory and business environment of Cyprus. 3

4 Κey topics 1. Overview of the Cyprus Economy and Real Estate Sector 2. Real Estate Investment Opportunities in Cyprus 3. Legal and Tax Framework Surrounding the Real Estate Sector: New Incentives 4. Regulation Governing Property Funds 5. Real Estate Opportunities for Foreign Investors Through Listed Property Funds 6. Distressed Real Estate Investments: Myths & Realities 7. Panel Discussion - REOs by the Banks: Disposal and Implications for the Real Estate Sector 8. Panel Discussion - The Naturalisation Effect: How it Revived the Cyprus Real Estate Sector 4

5 Indicative Agenda 1. Overview of the Economy Residential and Commercial Real Estate Sector in Cyprus Initially, the financial crisis of 2008/9 had little effect on the Cyprus real estate sector. However, by 2013, the banking sector was heavily affected, which required external financial bailout. This rescue plan was conditional on the country taking part responsibility for raising bail-in funds from all bank account holders, commonly known as Haircut. The knock on effect was a depression in the residential and commercial real estate sector throughout 2013 to During that time, Cyprus began a programme of recovery, which witnessed a return in the growth of the economy in 2015 and the end of the bailout conditions in This recovery is expected to continue over the next 5 years. The real estate market lagged behind the economic recovery by about 18 months, but now there are early signs of reversal in the trend. However, it remains at the lower end of the value curve, which makes investment in real estate in Cyprus a very attractive proposition. 2. Real Estate Investment Opportunities in Cyprus A combination of legislative changes with subdued construction activity suggests that this is the optimum time for overseas investors to move into Cypriot real estate. With its year-round sunshine, Cyprus has long been a magnet for international investors, expats, retirees and those looking to enjoy a second home in a mild climate. Today the sector is targeting mostly high-end investors with a variety of products such as exclusive villas in five-star complexes, high-rise buildings, golf courses, seafront developments and luxury townhouses. 5

6 Indicative Agenda 3. Legal and Tax Framework Surrounding the Real Estate Sector: New Incentives Prospective purchasers will be attracted by recent changes to immoveable property tax (IPT). A new law was passed in July 2016 to cut property taxes by 75% and abolish them altogether in New property legislation was also passed in 2015, ramping up protection for buyers in Cyprus, allowing owners to apply for their own title deeds. Thanks to the new amendment, the process is set to become more efficient, giving prospective buyers peace of mind and security. 4. Regulation Governing Property Funds Significant changes in the regulatory environment affecting the development of the property funds in Cyprus will be explored to provide participants with the insight concerning the various parameters for establishing and operating a regulated fund. 5. Real Estate Opportunities for Foreign Investors Through Listed Property Funds Despite the significant opportunities currently being offered by the oversupply of industrial and commercial properties, growth of listed property funds is still at its infancy. This condition prevents many foreign institutional investors as well as local buyers from tapping into the Cypriot property market. At the conference we will address this challenge and present ideas for how to deal with it in the future. 6

7 Indicative Agenda 6. Distressed Real Estate Investments: Myths & Realities The global financial experience of the past seven years has shown that the banking and the real estate sectors in Cyprus and the rest of the world are strongly interlinked, and that the restoration of the banking system is vital for the sustainable recovery of the real estate market. Prices in real estate can only recover once the uncertainty in credit markets, exacerbated by the banking crisis, subsides. It is therefore important that Cyprus creates a productive and efficient regulatory framework dealing with mortgaged property as soon as possible. 7. REOs by the Banks: Disposal and Implications for the Real Estate Sector Following the practices of many financial institutions around the world post-crisis, banks in Cyprus have adopted a Debt-to-Asset Swap strategy to reduce their Non Performing Loans (NPLs). As a result, REOs are increasing rapidly in banks portfolios. The banks target is to manage efficiently and dispose the REOs as soon as possible. The implications for the real estate sector could be significant because the potentially high supply that will be created will affect the prices and the values of real estate assets. 8. The Naturalisation Effect: How it Revived our Real Estate Sector Compared to the previous scheme, thresholds for citizenship are considerably lower (reduced to 2m from 5m), in addition to a more inclusive set of criteria. 7

8 Speakers Notable Speakers - Cyprus Investment Promotion Agency (CIPA) - Ministry of Finance & Ministry of Interior/ Immigration Office - Asset managers - Largest property developers & landowners - Funds & Investors - Professional services (law firms, immigration firms, accountancy, financial advisors) - Financial institutions 8

9 Event Programme Day 1: Arrival Of International Speakers 20:30 Welcome Cocktail 21:00 Dinner with Sponsors & Speakers Day 2: Cyprus Business Hub: Let s talk Real Estate Conference & Exhibition 08:30-09:00 Registration & Coffee 09:00-09:20 Introductions by Mr. Mufid Sukkar & Dr. George Mountis 09:20-09:30 Official Welcome Addresses (Minister Speech) 09:30-09:50 Overview of the Economy & Residential and Commercial Real Estate Sector in Cyprus 09:50-10:10 Real Estate Investment Opportunities in Cyprus 10:10-10:30 Networking Coffee Break 10:30-10:50 Legal and Tax Framework Surrounding the Real Estate Sector: New Incentives 10:50-11:10 Regulation Governing Property Funds 11:10-11:30 Real Estate Opportunities for Foreign Investors Through Listed Property Funds 11:30-11:40 Networking Coffee Break 9

10 Event Programme 11:40-12:10 Distressed Real Estate Investments: Myths & Realities 12:10-12:40 Panel Discussion - REOs by the Banks: Disposal and Implications for the Real Estate Sector 12:40-13:10 Panel Discussion - The Naturalisation Effect: How it Revived our Real Estate Sector 13:10-13:30 Q&A 13:30-14:30 Lunch Break 14:30-15:00 Exhibition Cocktail 15:00-17:00 Pre-Arranged One-to-One Meetings 10

11 Venue Layout The Venue will be set up to comfortably accommodate all participants and allow them to view the stage which will be thematically dressed for the event. All necessary audio-visual equipment will be available in the room (screen, projector, laptop, DVD player, podium, speaker, microphones, etc.). Adjacent to the conference room, an exhibition area will be set up where property development companies and other real estate businesses will have display areas (booths) as well as conference facilities for personal discussions. The organisers will pre-arrange one-to-one meetings upon request. There will be dedicated personnel to assist participants with the registrations, seating arrangements, presentations of all exhibitors, booth set-up and one-to-one meetings. 11

12 Conference Details Conference Details Conference language: English (including all related material). Pre-registration is required. No registration will be available on the actual day of the conference. The conference will include coffee breaks, lunch break and cocktail reception at the end of the conference for networking at the exhibition area. Dress code: Business formal. Attendance The conference is designed for business leaders in Cyprus, Middle East, Asia & South-Eastern Europe. This will include government officials & diplomats and representatives from CIPA, as well as senior executives, managing directors, CEOs, CFOs & board members from: Banks Developers & major real estate corporations Accounting firms Law firms Insurance companies Immigration firms Corporate service providers Benefits to Participants Formal and informal networking: Take advantage of the extensive networking opportunities built into the conference agenda. Key Topics: Gain awareness on the real estate market and general economy within Cyprus Registration Fee Registration fee: 150 +VAT per participant. Payment Terms and Conditions for participants: 100% of all fees must be paid before the conference. 12

13 Contact Details Enquiries For further information and enquiries, please contact us: T: F: E: W: wtccy-dp.com Follow us: 13

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