The Neo Plaza discount mall has passed into the hands of Astro Bank after an unsuccessful attempt to sell it at auction last September.
Meanwhile, legal proceedings are underway as the former owner disagrees with the final amount at which the bank valued the mall. According to some reports, this process could take several years.
It should be noted that the shopping centre had previously been pledged to the bank. In order to recover the accumulated debts, the financial institution decided to resell it for 10.5 million euros. However, this did not satisfy the borrowers and the owners of the project, who demanded the return of 17 million euros as the minimum market value of the property. At the same time, it is known that the property was bought by a subsidiary of Astro Bank for more than 11 million euros.
It is worth noting that Astro Bank gave the original owners the opportunity to repurchase the Discount Village within 12 months of its seizure for debt. However, they have not yet taken up this offer. Instead, they have chosen to take legal action. Interestingly, Astro Bank attributes the fall in the price of the discount village to its low liquidity.
We would like to remind you that the Neo Plaza project, which is grand in its scale, is located 12 km away from Nicosia Mall in Nicosia, 30 minutes by car from the city centre.
The discount village covers an area of 55 thousand m2. Neo Plaza includes:
- 45 shops and boutiques, local and global brands, offering tempting discounts of up to 70% on goods on a permanent basis;
- numerous indoor and outdoor cafes and restaurants surrounded by green spaces and fountains;
- a 2,000 m2 amusement park for children and adults;
- a large stage in the main square for concerts, charity and children's events;
- a giant projector screen that broadcasts sports tournaments and other key events on the island and around the world;
- 1,100 free parking spaces with disabled access.
In addition, the Discount Village features the Volta Children's Park. The entertainment area for the island's youngest residents consists of a 600m2 indoor space as well as a 2 thousandm2 outdoor area. The park is designed for children aged 3 to 12 years old.
In October 2021, the public warmly welcomed the new retail space, but throughout 2022, the number of customers continued to decline. Customers were heading to other shopping centres in the area, namely Nicosia Mall, which is a short drive away. The drop in popularity had several reasons.
Firstly, a rather unfortunate choice of brands that did not gain the necessary support from customers, a small number of shops and the absence of well-known brands can be seen as some of the main reasons for the failure. At the same time, there were not enough cafes and restaurants, which made it difficult to choose the business park as a place to eat.
Secondly, the weather conditions also played an important role. One of the main reasons why consumers choose to hang out in indoor shopping centres is the comfortable temperature at any time of the year.
Thirdly, any new concept needs time to achieve the desired results and to constantly update the product range. However, loan commitments, rents that tenants were unable to pay due to extremely low sales, and intense competition left no room for the shopping centre to be loved by residents and attract regular visitors.