The concept includes creation of a chain of villages for people over 60 years old.
First step is to establish the village in Cyprus.
Advantages of implementation in Cyprus:
-Economic downturn in Cyprus, therefore cost reduction
-Ability to directly control the process
-Government involvement in the project, as it is a significant project for the island
-Good climatic conditions and habitual country for the British and Scandinavians
-Fast growing market where demand exceeds supply
-Absence of competition on the island
Following steps – creation of similar projects in other Mediterranean countries.
Creation of a network under a single brand name that, in future, will be able to attract the attention of large investment funds for the sale of the business.
The village is aimed at active people who need a little help today, but there is confidence that it will be possible to receive the necessary medical care or assistance when necessary. In addition, the village offers a vast range of activities and lessons for residents. There is a possibility of an increase in services with the development and identification of needs.
SWOT Analysis of the Project for the residents.
Positive aspects (internal environment)
- -Profitable: competitive price, tax incentives (tax reductions for pensions from 20% to 5%), a weak euro, return of funds to the heirs when buying a leasehold property)
- -Interesting: gerontology and innovation to prolong the active life, 20 clubs for 5 hours a day, necessity, protection from loneliness, a dog – man’s best friend, 15 minutes to the sea, guided tours, festivals
- -Convenient: language and culture are familiar, everyday tasks – our concern, the entire infrastructure of 5 star level, diet food, swimming pool, fitness center, concierge, garden with flowers and “marijuana”, space for relatives.
- -Secure: 24/7 medical care, the doctor available 2 times a week, the button in the room, a nurse on demand, scheduled and emergency hospitalization insurance, rehabilitation, housing for a dependent / dementia residents
Negative impact (internal environment)
Being far away from the family
Issues of moving
Positive aspects (external environment)
15 minutes to the city centre and medical institutions
Good air links between Cyprus and Britain
The uniqueness of the project – the attractiveness of the project for the Government
The decline of the economy – reducing the cost of the project
The weakening of the euro against the pound
The tax benefits for residents of the village (tax reduction for retirement from 20% to 5%)
Qualified medical system on the island
Negative impact (external environment)
Limited space and remoteness of the island from the mainland
The village plans to build 280 bungalows for double occupancy, of a maximum capacity of 560 people. Calculations are made for the average occupancy of 450 people. Construction of a separate building for more dependent residents is envisaged, with a capacity of 100 people. The total area is 22,000 square meters of residential development
Administrative building of 2500 sq. meters will be constructed, which will include a restaurant, rooms for club activities, a fitness center, a bar, a library, a medical room and administrative offices, a pharmacy, beauty salon, shops and stalls.
The annual fee includes accommodation, cleaning, laundry, 3 meals a day, a number of activities, and 24/7 concierge-assisted services. The annual payment will be made on the basis of 2500 euro / month – 3000euro / month, depending on the form of payment and a set of services. A detailed calculation is presented in the Business Plan.
- -Preparatory phase:
- -Conduct a series of meetings with the representatives of state structures for the presentation and discussion of the project
- -Research and identification with the target group
- -Participation in conferences aimed at this market segment
- -Preparation of a business plan
- -Selection of land
The duration of these works – 3 months. HELD
In the first stage, a number of lands were picked, corresponding to the requirements of the project.
Church of Cyprus and the State showed an interest in participating in promotion and support of this project.
A need for this type of project was revealed, as the island is home to a large number of Englishmen who are forced to leave the island, as they reach a certain age, due to lack of a sense of Security, and in the case of health problems. The second reason forcing them to leave the island is the fragmentation of the community and lack of communication with their peers.
Based on the results of the first stage, the target audience has been expanded and an interest in such projects has been revealed not only from the retired people from the UK, but also from the Scandinavian countries (Sweden, Norway).
The overall Business Plan of the project was prepared, which must be adjusted to the selected investment plan.
- The Second stage:
- -The development of the architectural project
- -Obtaining the necessary permits and licenses
- -Purchase of land
- -The tender for construction work
- -Preparations for the beginning of construction work
Term of work 3-6 months
- The Third Stage
- -Facilities and equipment
- -Launch of membership sales
The total project cost 37.5 million euros.
Time to launch the project – 2 years.
The planned return on investment:
* 10 years of property ownership and renting
* 3-5 years by sale of real estate.
* 5-7 years by partial sale of real estate
Average IRR (internal rate of return) for 7-10 years is 23-29%, taking into account that funds will not be reinvested in other projects . Expected net return after tax is 7-15%, depending on the chosen strategy.
Possible investment schemes:
- -Control and possession of the project – a long-term investment in a transparent, growing business with a stable income. The average yield is 7.10% per annum from business ownership.
- -Control and ownership of the project. The ability to create a network. A further sale of ready business.
- -Control over possession and sale of shares of the project during the implementation phase of the project with a yield of about 10%. Attraction of investors under the program of citizenship for investment starting from 2.5 million euro.
- -Control and ownership of the business, and sale of real estate to the investors or residents, together with further management of the village. A shorter investment horizon, income comes from the sale of real estate and further control of the village.
article in Gold magazine