Create an AssetCo holding a 50-year land lease for Corallia Beach, and a joint-venture OpCo to operate the hotel.
Purpose: to secure funding, rebuild, and relaunch Corallia as a Mediterranean landmark resort.
Family Arapis grants AssetCo a 50-year land lease
AssetCo controlled by Family Arapis (minimum 51%).
AssetCo grants separate OpCo to operate the resort for 50 years in a joint venture owned 100% with Gadelius.
Arapis Family
Land worth > €100m but underutilised
Hotel falling apart, losing value every year
Do not want to sell land
Do not want to borrow heavily
Do not want to lose control
Gadelius Family
Former acting CEO of Sweden’s largest private real estate group
Founder of award-winning Sportstyle Resorts
Built systems and profitability for HoReCa operations
Owned and managed 10+ AssetCo´s and OpCo’s in HoReCa.
Access to international capital and institutional partners
Background as co-owner & CCO in major airlines, with deep tour operator and charter network
A Mediterranean boutique landmark
Rebuild Corallia into a 4.5-star boutique resort
Create a Beach Club with world-class music and gastronomy
Develop Cyprus’ first Michelin-style restaurant in a bungalow in the banana plantations:
Local produce, family-grown, reimagined as modern fusion with only Cypriot produce
The most exotic destination in Europe/EU
The Edge: A Music Platform
Hotel brand doubles as an artist / label / music brand
Build recording studios integrated into the resort
Collaborations with global artists (Martin Garrix, SHM etc.) as ambassadors/partners/investors
Release music under the hotel’s name → international reach & PR power
Arapis family maintains long-term legacy through land ownership, AssetCo majority and joint ownership of OpCo
AssetCo – Hotel Property Company
50-year lease contributed in kind by Family Arapis
Family Arapis retains majority equity
External investors participate via minority equity to fund refurbishment
Balanced capital stack: ~50% senior debt / ~50% equity, but lowest senior debt (bank loans) possible
Target investor economics: ~7% annual preferred return, total 1.5–2.0x over 7–10 years (standard)
OpCo – Hotel Management Company
100% joint venture between Family Arapis and Gadelius
Pays fair lease to AssetCo (benchmark ~20–25% of gross revenues)
Formalize a joint intent to redevelop Corallia Beach
Grant family Gadelius exclusivity for 12 months (2026) to represent Family Arapis in discussions
Enable capital raising, partnership building and project development on behalf of the JV
Commitments for family Arapis
Commission cost study (redevelopment / refurbishment budget)
Commission operating study (labour, opex, Cypriot hospitality benchmarks)
Maintain ongoing dialogue and provide access for due diligence to family Gadelius
Commitments for family Gadelius
Lead development of pitch deck and investment case
Engage with banks, investors and strategic partners on behalf of the JV
The Outcome:
By end of exclusivity period: complete feasibility package, full investment deck, and one or more credible financing/partnership solutions for Corallia Beach.
Penny Advisor AB
Org Nr. 556132-9946
Vasavägen 1A
181 42 LIDINGÖ
Penny Advisor AB
Org Nr. 556132-9946
Vasavägen 1A
181 42 LIDINGÖ
© Penny Advisor AB