The future of Cyprus' first outlet village, Neo Plaza in Kokkinotrimithia, is uncertain following the unsuccessful auction attempt by Astrobank on September 29.

On one hand, the bank has not clarified its intentions regarding future actions. On the other, the owners persist with their lawsuit, demanding compensation of 17 million euros.

According to a well-informed source speaking to Brief, after the failed auction, Astrobank has six months to either sell Neo Plaza or announce a new auction, though this latter possibility seems unlikely.

If these six months pass without action, the bank will have an additional three months to initiate property recovery procedures. Currently, there's a valuation discrepancy between the two parties: the bank estimates the property's value at 10.5 million euros, while the owners value it at 17 million euros.

Amidst this legal impasse, where neither the bank nor the appointed Administrator-Receiver, who was assigned in December 2022, have set up a defense, there have been developments concerning the outlet village. These come after complaints from tenants about the property's neglect.

Sources indicate that an Israeli expert, familiar with the Cypriot market, has been recruited to prevent the closure of Neo Plaza, a move seen as positive by all parties involved.

The ongoing legal battles, including the auction attempt and the owners' lawsuit, have significantly impacted the open-air shopping center.

According to Brief, the appointment of the Administrator-Receiver on 22/12/2022, primarily aimed at debt collection and expense reduction, led to conflicts with tenants. Consequently, the occupancy rate, once between 80% and 90%, has now dropped to around 40%.

Meanwhile, those remaining retailers are hoping for a revival during the Christmas season, though their future at Neo Plaza beyond the holidays remains uncertain.

"We are in a neutral state, with the future looking uncertain," said a source familiar with the developments. The current stagnation is attributed to the inability to predict the bank's actions within the six-month period post-auction failure - whether it will proceed with a new auction or undertake other measures.

"The bank's response after this six-month period is also uncertain," the source concluded.