CHINESE LARNACA AIRPORT INVESTMENTSIGNED

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Pafi lia is pleased to announce that it will issue title deeds for all properties on Alithea, Konia Gardens, Tala Gardens and Melissa Villas this March.

CHINA EYES CYPRUS LNG PLANTCYPRUS COULD BECOME ENERGY BRIDGE - WORLD’S LONGEST POWER CABLE PLANNED TO REAP GAS RICHES

China’s third largest national oil company, CNOOC (China National Offshore Oil Corporation) has pre-sented to Cyprus its plans for the construction of an LNG plant to process and export the now confi rmed offshore hydrocarbon reserves. Commerce Minister Praxoulla Antoniadou announced that a senior del-egation from CNOOC met on the 02.03.12 with the ad hoc ministerial committee handling energy issues to present their views on how to proceed with an LNG terminal in Cyprus. Though not going into detail, the minister said that the government made it clear to the Chinese that the Cypriot state should have control over a possible national oil company. The CNOOC Group is a state-owned oil company, fully owned by the government of the People’s Republic of China. It has become China’s dominant producer of liquefi ed natu-ral gas in recent years, and is the fi rst company to bring LNG to China, with the completion of its Dapeng LNG Terminal in Guangdong. In June 2005, CNOOC made an all-cash $18.5 billion offer to buy American oil company Unocal Corporation, topping an earlier bid by ChevronTexaco. It subsequently withdrew its bid, citing political tension inside the United States.

CHINA EYES CYPRUS LNG PLANT

Dear valued clients and partners,

The Spring 2012 edition of Pafi lia update offers a comprehensive overview of the latest news, devel-opments and events on the island. As you will see, Cyprus is showing strong signs of growth, fuelled by the huge gas discovery, government incentive packages and high-value international invest-ments. These exciting developments coupled with Pafi lia’s highly attractive current property prices offer the perfect time to invest.

SECOND LICENSING ROUNDLast month, Cyprus launched a second licensing round for 12 blocks in its offshore Exclusive Economic Zone, excluding the prospect in which Noble tapped a sizeable reserve last year. Interior Minister Neoklis Silikiotis announced that the effi cient establishment of a national oil company is a high priority for the government, adding that several companies have expressed an interest in the licensing round. He went on to say “we shall set up a corporation which will be the strategic partner of all the companies and will be involved in matters of local infrastructure as well as the distribution of natural gas to the world mar-ket.” The Cypriot delegation presented the second licensing round during APPEX (American Association of Petroleum Geologists Prospect and Property Expo) which took place in London between the 6th and 8th March 2012. In addition, Foreign Minister Erato Kozakou-Markoullis visited Norway on the 5th March for offi cial talks with Norway’s State Secretary Mr. Per Rune Henriksen at the Ministry of Petroleum and Energy regarding a possible cooperation in the fi eld of hydrocarbons.

TITLE DEED ISSUANCE

Hermes Airports Ltd, the consortium operating and managing Cyprus’ two airports, has confirmed re-ports that it is negotiating a sizeable investment with an undisclosed Chinese company pertaining to the construction of exhibition showrooms and a logistical service centre at the old Larnaca airport build-ing. Airports’ spokesman Adamos Aspris, announced that the consortium has signed a memorandum of understanding with the Chinese company following months of “discreet talks”. The MoU will “pave the way for more substantive talks” between the two parties, with a view to achieving “one of the larg-est investments ever made in our country,” commented Aspris. Adding, the Chinese company’s pro-posal involves the creation of a large commercial showroom for Chinese products as well as a logistical services centre. “The logistical centre will be based at the old Larnaca airport, and will constitute the bridge linking China to Europe, Africa and the Middle East”. The value of the investment is rumoured to be in the region of €1 billion. The project is expected to create hundreds of jobs and increase visitors to the island, including the managerial staff of the companies showcasing their products. Larnaca Mayor Andreas Louroudjiatis welcomed the news, commenting “the old airport area definitely needs to be developed and it can contribute to the town’s growth”. He also commented, that the Larnaca munici-pality is ready to help in all ways possible to reach a positive conclusion, including easy procedures to settle legal aspects. “This is why we created a specific committee at the municipal council that involves promoting investments,” Louroudjiatis explained. “We want to send out the message that it is time for Larnaca to achieve the growth that it deserves.”

CHINESE LARNACA AIRPORT INVESTMENT

CYPRUS COULD BECOME ENERGY BRIDGE

WORLD’S LONGEST POWER CABLE PLANNED TO REAP GAS RICHES

Israel and Cyprus began a feasibility study on 04.03.12 for the construction of an underwater electric cable between the two countries that could ensure their energy security and offer Israel a channel to export energy to Europe.The Israel-Cyrpus leg, with an estimated cost of half a billion euros ($660 million), would eventually be part of a much longer cable continuing to Greece and from there to the pan-European electricity grid. If approved, the EuroAsia Interconnector will stretch 1,000 kilometers (600 miles) in total at a maximum depth of 2,000 meters, making it the most ambi-tious project ever of its kind, said Nasos Ktorides, chairman of DEH Quantum Energy. Ktorides signed a memorandum of understanding in Jerusalem with his partner, state-owned Israel Electric Corp (IEC), to begin the feasibility study that should be completed by year end. The cable itself will take three years to build. Quantum En-ergy is comprised of Greece’s PPC, Cyprus’s Quantum Energy and Bank of Cyprus. Israel Energy Minister Uzi Landau has promoted building the submarine cable that will carry 2,000 megawatts in both directions, allowing Israel to sell electricity when production is high and have a back-up when reserves drop.

NEW FLIGHTS FROM RUSSIAThe Cyprus Tourism Organisation (C.T.O) has announced that seven additional Russian airports, Perm, Arkhangelsk, Kemerovo, Tyumen, Chelyabinsk, Omsk and Nizhny Novgorod, will commence flights to Cyprus during 2012. Nine oth-er Russian federation airports, Moscow, Saint Petersburg, Yekaterinburg, Ufa, Rostov, Novosibirsk, Kazan, Krasnoyarsk and Samara, already operate flights to the island. The 16 cities are located on both European Russia and Asian Russia’s West Siberian plain, and include some of the most populous cities in the region. Head of the Cyprus Tourism Organisation, Alecos Orountiotis, commented that “the Russian market is a major priority for us”, continuing, “we hope to have over 400,000 tourists from Russia in 2012”. The Russian market accounts for the second largest number of tourists arrivals to Cyprus, with the largest market remaining the UK.

RUSSIAN DUMA RATIFIES THE CYPRUS-RUSSIA PROTOCOLThe Cyprus Investment Promotion Agency (CIPA) welcomed the ratification of the amending Protocol to the Cyprus-Russia Double Tax Treaty of 1998, which removes Cyprus from the so-called Russian “black” list. The ratifica-tion, which was announced on 15th of February 2012 by Russia’s State Duma, will become effective from 1st January 2013. This positive development cre-ates new opportunities for Russian investors for the use of Cyprus compa-nies and funds as a gateway to Europe, Asia and Africa. The signed protocol will help Cyprus to attract new Russian outbound investments, while pro-viding substantial business benefits to its existing Russian investors. CIPA highlighted that Russia maintains the top position in the list of countries with foreign investments in Cyprus. The ratified agreement highlights a very attractive infrastructure and favorable pre-conditions for collaboration with international companies originating from Russia. The Cyprus Investment Promotion Agency announced that it will continue its efforts in actively sup-porting similar initiatives, which will further improve the business environ-ment of Cyprus and enhance the overall image to attract foreign direct in-vestments.

Plans to turn the Cyprus Investment Promotion Agency (CIPA) into a ‘one-stop-shop’ with the aim of bypassing bureaucracy and making it easier for foreigners to invest in the island in order to increase overall investments, have advanced, with President Demetris Christofias announcing that he will promote the proposal to the cabinet during March. CIPA Chairman Christodoulos Angastiniotis, explained, our goal is to combat bureau-cracy and make Cyprus’ procedures in licensing and serving foreign investors easier, commenting “we are looking forward to a cabinet decision that will give CIPA the ability to manage, in cooperation with the other state authorities but also with CIPA having a coordinating role, the procedures to serve foreign investors,”. He continued, “we are in agreement with the president on what must happen, but the final proposal and wording will be formed in the next one or two weeks”.

Angastiniotis said that CIPA’s proposal will not be regulated into law, just implemented as a cabinet ruling. Government Spokesman Stefanos Stefanou, said the president has underlined the need for Cyprus to continuously upgrade its efforts, with the final goal of turning it into an investment centre, commenting “we are pleased to say there has been increased activity and increased interest from foreign investors in Cyprus, especially fol-lowing recent confirmation of the existence of natural gas resources,”. He added that, the increase is also due to the trust shown by foreign investors in Cyprus’ economy, which is supported by solid foundations.

PLANS TO EASE INVESTMENT REGULATIONS

WINGS OF DANCE BALLET20 & 21 JULY, 2012LIMASSOL MUNICIPAL GARDEN THEATRE

CANADA’S TRIPLE FIVE CONSIDERS INVESTMENT IN CYPRUS BANKING, ENERGY AND TOURSIMTriple Five Group, a finance and development company, is considering investing in Cyprus, said Nader Ghermezian, chairman of the Canadian firm. The group, which owns Peoples Trust, a Vancouver-based Bank, may invest an unspecified amount in energy, tourism, banking and government bonds, Ghermezian told reporters in Nicosia on 14.03.12. According to press reports, negotiations have reached an advanced stage and representatives of the company will finalise de-tails of the scope of its investment within days. With respect to banking, there “are three options for us,” which include opening a branch of its bank on the east Mediterranean island, opening a new bank, or “to make an arrangement with a local bank so that we can bring more investment” to Cyprus, Ghermezian said. The chairman of Triple Five commented that the group is already in talks with the Central Bank of Cyprus, which is in charge of issuing banking licenses. His group may contribute to the development of the energy industry of Cyprus, which announced in December its first natural gas discovery.

Cyprus has a rich and diversified calendar of cultural events taking place across the island. For the first time in Cyprus, leading soloists from eight of the most prestigious ballet companies in the world, including dancers from the United States, Belgium, Russia, Ukraine, Spain and Canada will participate in the premiere “Wings of Dance”. The show will be a combination of classical great ballet pieces, including Romeo and Juliette, The Walpurgis night, Swan Lake, The Dying Swan, Giselle, Le Corsaire and Don-Quixote.

Performers will include:

NATALIA KRAPIVINA, Principal, Moscow Stanislavsky Ballet Theatre, Russia

NADEZHDA GONCHAR, Soloist, Mariinsky Ballet Company,

St. Petersburg, Russia

NANDITA SHANKARDASS, Soloist, Compania Nacional de Danza, Madrid, Spain

TETYANA LOZOVA, Soloist, Ballet of National Opera of Ukraine, Kiev

OLGA PRIKHODTSEVA, Dancer, Director of “Wings of Dance”,

Colorado Ballet, Denver, USA

DMITRI DOVGOSELETS, Soloist, Canada’s Royal Winnipeg Ballet

SERGEI SIDORSKY, Soloist, Ballet of National Opera of Ukraine, Kiev

VIACHESLAV BUCHKOVSKIY, Principal, Director of “Wings of Dance”,

Colorado Ballet, Denver, USA

YEVGEN UZLENKOV, Soloist, Corella Ballet, Madrid, Spain

CAITLIN VALENTINE-ELLIS, Soloist, Colorado Ballet, Denver, USA

GEORGIY SMILEVSKIY, Principal, Moscow Stanislavsky Ballet Theatre, Russia

YEVGENIY KOLESNIK, Soloist, Royal Ballet of Flanders, Antwerp, Belgium

Cyprus president Dimitris Christofias, right, shakes hands with Nader Ghermezian, chairman of Triple Five, at the presidential palace in Nicosia, Cyprus, Wednesday, March 14, 2012. Nader Ghermezian, Chairman of Triple Five called Cyprus “one of the best countries in the world today to invest in..”

Pafilia is pleased to announce that it will issue title deeds for all properties on the following developments this March

PAFILIA TITLE DEED ISSUANCE

TALA GARDENS ALITHEA

MELISSA VILLAS KONIA GARDENS VILLAS

Pafilia held its annual staff dinner at its recently opened Minthis Hills clubhouse during February.

3 BEDROOM DETACHED VILLANOW €680,000 incl. VATWith an evergreen pine forest as its backdrop, orchards on either side and stunning panoramic coastal views to the front, this exclusive villa enjoys an unequalled posi-tion.

PINE SEA VIEW VILLAS VILLA 12

PROPERTY OF THE MONTH

• 150 metres from a beautiful sandy beach• Private guest suite• Large overflow pool, sun terrace, BBQ area, and gardens• Open plan living/dining area• Beautiful sea and mountain views• Contemporary design with luxury specifications• Five minutes away from Polis

IN BRIEF

• Type – Detached villa • Beds – 3 double (2 ensuite) & 1 guest • Size – 168.36m sq • Plot – 943.86m sq • Pool - 1 overflow • Status – ready

PAFILIA TO ABSORB VAT INCREASEEvangelia Eliadou, Executive Director of Pafilia has announced that Pafilia has decided to absorb the recent vat increase until the end of 2012, enabling clients to save an additional 2% off property prices.

PAFILIA ANNUAL STAFF DINNER

contact usHEAD OFFICEPafi lia Property Developers Ltd Pafi lia House33 Nicodemou Mylona Street Marina CourtP.O. Box 60159 8101 Pafos, CyprusT: +357 26 848 800 F: +357 26 934 910 Cyprus Freephone: 8000 8989E: info@pafi lia.com www.pafi lia.comwww.minthishills.com

MOSCOWWorld Trade Center KrasnopresnenskaiaNaberezhnaia 12Pod’ezd 6, Offi ce 1032123610 Moscow, RussiaTel/Fax: +7 (495) 258 1970/71Freephone: 8 800 700 8686Email: russia@pafi lia.comwww.pafi lia.ruwww.minthishills.ru

ST. PETERSBURGAptekarskaya Embankment20a, Offi ce 225197022 St. Petersburg, RussiaTel: +7 (812) 680 2888Fax: +7 (812) 680 2889Email: s.zelenyak@pafi lia.comwww.pafi lia.ru www.minthishills.ru

PAFILIA INTERNAL FINANCE SCHEME!

UKRAINE56 Bohdana Khmelnitskogo StreetKyiv, 01030, UkraineTel: +380 44 200-25-00 Mobile: +38 05038 5555 8 Fax: +380 44 200-25-01n.makarov@pafi lia.comwww.pafi lia.com.ua

MINTHIS HILLS TO HOST THE CYPRUS MEN’S AMATEUR OPEN 2012The three day open, which is a counting event for R&A’s WAGR (World Amateur Golf Rankings), will be held between 20th and 22nd April, with the overall winner receiving the title ‘Cyprus Open Champion 2012’. Registration and practice will take place on April 19th.

CONGRATULATIONS TO MARIOS!Minthis Hills Head Chef Marios Karayiannis was awarded the silver medal for ‘Chef of The Year 2012’ at the recent Mediterranean Culinary Challenge, in association with the World Association of Chefs Societies.

The Pafi lia internal fi nancing scheme, which is available on all ready properties, enables cli-ents to borrow up to 50% of the property value. Addition ally, clients are able to take delivery of the property once a 50% personal contribution has been paid. The borrowed amount is sub-ject to a fi xed interest rate of 6.5%, capitalised every six months, and is repayable in monthly or quarterly instalments over a fi ve year peri-od. Clients benefi t from many sav ings, such as no loan arrangement fees, saving up to 2.5% of the property value (mortgage fees are 1% and arrangement fees 1.5% of the property value), no life insurance requirements (saving up to 0.075% per month on the loan balance) and no early settle ment fees.