Cyprus Trading : Announcement by CTC Group concerning Korivos Commercial Centre in Paphos

ANNOUNCEMENT BY CTC GROUP

CONCERNING THE KORIVOS COMMERCIAL CENTRE IN PAPHOS

It is with great regret that we have been informed of the announcement of the Municipality of Paphos on 15 October 2021, regarding the Korivos Commercial Centre. While it is not our intention to come into conflict with the Municipality of Paphos, we are obliged to ensure that the public remains properly informed and clarify the following:

1. Due to a Paphos District Court Order, issued in response to an application by the Municipality of Paphos, the Korivos Commercial Centre will cease its operations on 14th of November 2021, unless a Certificate of Final Approval is issued by the Municipality of Paphos. As a result, around 200 people will be driven to unemployment. Informatively, Korivos Commercial Centre houses the ERA Department Store (previously Debenhams, not a supermarket), the Superhome Center (DIY) and the Next store.
2. Our absolute respect for Justice is a given. Evidence of this is the fact that we have activated the process of compliance with the Court Order to end the use of the building that houses Korivos Commercial Centre. We have appealed the court's verdict and we will follow and implement all the appropriate procedures as we seek every possible legal remedy and the safeguarding of our rights.
3. The Korivos Commercial Centre has been operating for the last 20 years, since 2001, in a safe and smooth manner, serving thousands of consumers. It is emphasized that, since 2003, it has a Planning Permit to operate as a department store, which was issued by the Municipality of Paphos in its capacity as Town Planning Authority, which remains in force and has never been revoked.
4. In spite of the above, in 2015 an Amended Planning Request was submitted to the Municipality of Paphos for insignificant alterations to the building, which were permissible under the Law, within the building envelope. The application again included its use as a department store.
5. Based on the above application, the Municipality of Paphos, as a Town Planning Authority, requested the consent of the Department of Town Planning and Housing, having sent a letter to the Department of Town Planning and Housing dated 19.2.2016, in which it stated its intention to grant the issue of a Planning Permit for the building as a department store. The Department of Town Planning and Housing gave its consent in a written reply in March 2016, considering - as did the Municipality of Paphos - that the application complied with all the criteria of the Law.
6. The Municipality of Paphos, despite its own decision (above) and the agreement of the Department of Town Planning and Housing, refused to issue the necessary permit.

Following this development, an Administrative Appeal was submitted to the Council of Ministers which, on 11 December 2018, unanimously accepted it and authorised the Municipality of Paphos to issue the Amended Planning Request for use as a department store, in accordance with the Law. Since the Municipality refused for a second time, a new Administrative Appeal was submitted to the Council of Ministers, which is pending.

1. In its statement today, the Municipality of Paphos is essentially contradicting itself and everything it had stated in writing to the Department of Town Planning and Housing in 2016, when it unanimously recommended the approval of our application as a department store. What is mentioned exists and is written.
2. As regards the unfortunate reference by the Municipality of Paphos to the
   "instrumentation of the personnel", we wish to emphasize that the event held by the employees was, as they themselves have confirmed, spontaneous and totally justified, given the fact that the closure of the Korivos Commercial Centre will mean that they will lose their jobs and be out of work at Christmas time.

Finally, we wish to assure the public that all the tasks brought to our attention by the Technical Services of the Municipality of Paphos have been completed. We confirm that we are willing to do whatever is necessary and will make every effort to find the best possible solution, always in the framework of the legal process, to ensure the smooth operation of the department store and to avoid unemployment.

To this end, it is for the Municipality of Paphos, as the responsible planning authority, to issue the required permits that the Company is entitled to have and subsequently, the Certificate of Final Approval, by 14.11.2021.

18 October 2021