Maria Eracleous
After Nicosia, the competition among shopping centers is shifting to the market in Limassol. The focus of the two strong players in the capital, Nicosia Mall (owned by Zorpa Group, PHC Group, Athienitis Group, and VLM Group) and Atterbury Europe (Mall of Cyprus), is set on their next investments in Limassol.
Both companies have formalized their intentions, with Nicosia Mall applying for a planning permit for a plot within the administrative boundaries of the Municipality of Agios Athanasios, in a commercial and industrial zone next to the Jumbo store. In the case of the Mall of Cyprus, prospective images of the project to be erected on the intersection of 1st October Avenue and Spyrou Kyprianou in Mesa Geitonia have been disclosed. The distance between the two proposed closed shopping centers is approximately 150 meters. The majority of the market's initial reaction suggests that such a development is not sustainable for both businesses and, more importantly, for traffic in the area. It is noted that this is an area where the Jumbo department store and Kotsovolos are already active.
Atterbury's proposed mall will consist of two floors – the first floor will cover fashion, clothing and footwear, sports, and service stores.
In addition to the new openings, changes are also underway for the existing shopping center, My Mall Limassol, with plans for an expansion of the commercial space and entry into the residential sector. Insiders in the retail market emphasize that the market cannot support two new players offering the traditional mall model as we know it today. It is estimated that both can only be sustainable through differentiation. For example, Atterbury is already indicating an intention to target a different audience, possibly focusing on luxury brands—a proposition that may be viable given the market dynamics in Limassol. However, the operation of two additional shopping centers could potentially be detrimental to the commercial streets of Limassol.
The new investments:
Nicosia Mall's investment amounts to €120 million, in collaboration with the Papantoniou Group. The proposed shopping center will have three floors and 105 stores, including clothing, footwear, and technology, dining areas, a cinema, and a playground. The market suggests that this project may have a slight advantage as the necessary permits and studies are already in progress, with construction expected to begin in the second half of 2024, pending approvals.
Atterbury Europe's proposed shopping center will consist of two floors, with the first floor covering fashion, clothing, footwear, sports, and services, while the second floor will focus on family entertainment, including a cinema, activity zone for children, and a food court with an emphasis on fast food. The design integrates both old and modern elements, creating a vibrant destination for retail and family entertainment. Construction is expected to start in the second half of 2024, pending approvals.
Expansion of My Mall:
The expansion of the existing My Mall in Limassol is also progressing, with approvals received for preliminary queries from the Limassol Municipality regarding development coefficients. The commercial addition is 6,000 square meters, and the residential part is 10,000 square meters, expected to include 130 apartments available for either rent or purchase. The investment is estimated at €45-50 million, with construction expected to commence, barring unforeseen circumstances, possibly in the second half of 2024.
Position of ETEK:
The president of ETEK, Konstantinos Konstanti, emphasizes that authorities should assess the cumulative impact of the two major commercial developments rather than considering them separately. It is crucial to evaluate the area's capacity, including infrastructure and traffic handling, to support the increased volume. He suggests that the state should guide development by identifying market trends, and saturated sectors, and promoting a new, more sustainable development model.
Views from existing market players:
Andreas Hatzimitsis, co-owner of the existing mall in Limassol, expresses concerns that the market in Limassol is already saturated, and a new shopping center, especially within Limassol, may cause more harm than benefit. He suggests that an investment in the eastern region of Limassol might be more functional and sustainable. The challenge remains to answer how the Cypriot market can absorb two new developments of the same type in close proximity.
[Please note that the information provided in the translation is a faithful rendition of the original Greek article]
