Final Stages in State's Purchase of Former Laiki Building
Funding Release Pending as Issues Near Resolution
The process regarding the purchase of the former Laiki building by the state and the temporary relocation of the Ministry of Interior to this building is nearing completion.
According to recent information from Brief, the purchase of the former headquarters of Laiki Bank, located at the intersection of Limassol and Athalassa Avenues, is proceeding as planned. There has been no change in the strategy, as the issues that seemed to arise concerning the issuance of the final approval certificate and the building's energy performance are on track to be resolved.
It is important to recall that the agreed sale price, following negotiations between the Directors-General of the Ministries of Finance and Transport with the Bank of Cyprus, amounts to €3,710,000 for the advance payment for the building purchase. This request, however, has not yet been approved due to precisely the issues mentioned above.
As noted in a memorandum from the Ministry of Finance to the Parliament, the building will serve multiple housing needs of the public service. Initially, it will be used for the temporary accommodation of the Ministry of Foreign Affairs until the repair and renovation of its own building is completed.
According to the Ministry of Finance's memo, the initial appraisal by the Department of Land and Surveys for the market value of the building was €16.5 million, while an independent assessor valued it at €21,155,000.
The Ministry of Finance states that in determining the final price, the Directors-General involved in the negotiation considered that a variance of 10%-15% from each side's starting point is absolutely reasonable and permissible.
Furthermore, the Ministry added that the decision to purchase the building took into account its strategic location in central Nicosia. Despite being constructed earlier, it meets modern construction requirements and has been well-maintained.
Additionally, the Ministry of Finance considered the immediate availability of the building and significant increases in construction sector costs, which would make constructing a new building of similar size and location more expensive.
