Kato Paphos, Cyprus. Shareholders of wine cooperative Sodap approved the long-term rental of its coastal plot in Kato Paphos to Kanika, enabling plans for a five-star hotel. The decision followed a general meeting marked by tension and controversy.
General meeting vote
The lease was approved by an overwhelming majority at a general meeting attended by more than 220 shareholders with voting rights. Seven shareholders voted against the lease.
Agreement and lease terms
An agreement worth tens of millions of euro was signed at the Sodap winery in the Stroumpi–Polemi area for the lease of the Kato Paphos beachfront plot. The lease is for 66 years, with the second half becoming effective subject to the tenant fulfilling its financial obligations after the first 33 years.
Sodap is set to receive tens of millions of euro in rental income over the duration of the lease, which the administration said is important for the organisation’s long-term sustainability.
Rental payments and bonus
For the first 15 years, Sodap will receive annual rent of €800,000, increasing by 2.5 per cent each year. From the 16th year onwards, annual rent will rise to €1.6 million, also increasing by 2.5 per cent per year.
Sodap will also receive a €500,000 bonus upon signing.
Hotel project
Kanika has committed to constructing a five-star hotel with at least 285 beds, with total investment costs estimated at €53 million.
What do you think the lease agreement means for Sodap’s long-term sustainability?
