Foster Home for the Elderly (Cyprus)

  • Reference: IO-CYP-009 
  • Sector: Health Care 
  • Region: Europe 
  • Country: Cyprus 
  • Price: €2,500,000 
  • Sales: €1,100,000 (estimate at 100% occupancy) 
  • EBITDA: 27% to 47% 
  • Assets: Investment opportunity to develop a foster home for the elderly in Cyprus 
  • Telephone: (357) 22504200 Cyprus 
  • Email: 

Investment opportunity to develop a foster home for the elderly in Cyprus

General information:

An opportunity to invest in an already permitted development project, to build a foster home for the elderly in a land area of 3.336 sq. met. Can attract customers from the surrounding area as well as from the broader city area. The area where it is located is in need of such services for the elderly, as there is only one small similar project in the whole area, which is only offering very basic services as a social welfare centre for old people.

The project is expected to be viable from the first year of operation, and the return on investment will be excellent if managed properly. The capital expenditure to complete the project (which includes construction, electromechanical installations, equipment, furniture & fittings, medical equipment, vehicles etc.) is only around €2.1 million.


A very well thought design in two floors plus a basement, which includes 30 rooms with a total capacity of 55-60 guests. Common areas include indoor swimming pool and sauna, physiotherapy and massage room, hairdresser, laundromat, common leisure areas, TV room, barbeque area, and green area, staff offices, parking for 36 vehicles (19 on ground floor and 15 in underground). Can offer private rooms or double rooms to share. Rooms to include the technology needed, such as oxygen facility, pressure meter, alarm, TV provisions etc.


Guests will have their daily care, including full meals, and will follow their routine schedule which will include doctors’ orders for medicine taking, special diet, exercise, excursions etc. Physiotherapy and hydrotherapy services will be offered as extra.


Yearly budget includes the hiring of nurses, a sister, chefs, kitchen staff, manager, administrator, book keeper, technician and cleaners according to the occupancy achieved, so to allow very good customer service but also profitability. Personnel training will ensure good customer service.

Investor Options:

– Joint Venture with the existing owner of the land (company) to complete the project at a full cost of €2,500,000
– Buy the shares of the company (SPV) owning the land (partially or in full) or outright sale and transfer of the plot for €480,000 (including cost of permits)

Owner Commitment:

The owner is a property developer who is willing to assist the buyer/co-investor with the issuance of the Building Permit, or even with the completion of the project by taking over the contract to build it as a subcontractor, at arm’s length relationship.


– Capital Expenditure to complete the project: €2.128.000
– Land Cost + Permitting: €480.000
– Estimated Revenue Year 1:

­ With 100% occupancy: Revenue = €1.100.000

­ With 75% occupancy: Revenue = €825.000

­ With 50% occupancy: Revenue = €550.000

– EBITDA Year 1:

­ With 100% occupancy: EBITDA = €525.000

With 75% occupancy: EBITDA = €325.000

With 50% occupancy: EBITDA = €150.000

Key Strengths and Prospect Opportunity:

– Planning permit in place. Such developments do not get easily permitted and there is a lot of intrinsic value to the existing permit.
– The area does not have any other similar projects and is in need of such a project
– The area is quite densely populated and in close proximity to the city
– This project can be profitable from the first year with a very promising EBITDA.
– Very well thought design and layout which can be run efficiently
– Can start construction in very short time
– Profitable venture