Sale of Peyia Land in Cyprus

DCI sells Cyprus land above book value; completion expected within four months.

What the company is saying

DCI Advisors Ltd has announced a binding agreement to sell its Peyia, Paphos, Cyprus land asset, held via subsidiary DCI Holdings Four Limited, for €2,800,000 plus VAT. The company highlights that this price exceeds the most recent carrying valuation of €2,511,000 as of 30 June 2026. DCI emphasizes the receipt of a €800,000 deposit plus VAT and frames the transaction as a monetisation event. The announcement details the ownership structure: DCI holds 83.35% of DCI H4, with the remaining 16.65% owned by Dolphin Capital Partners (DCP) through an affiliate. To settle a prior agreement with DCP, DCI will acquire DCP's 16.65% stake for a cash sum reflecting their pro rata share of net proceeds, estimated at €2,500,000 plus VAT, subject to transaction costs. The company notes that DCP is a related party due to its greater than 10% holding, and states that, after consulting Cavendish as nominated adviser, the terms are fair and reasonable for shareholders. The tone is factual, with no promotional language, and the company commits to further updates as the process advances.

What the data suggests

The agreed sale price of €2,800,000 plus VAT is €289,000 above the latest carrying value of €2,511,000, indicating a positive mark-to-market result for the asset. A binding sale agreement is in place and a €800,000 deposit plus VAT has been received, demonstrating tangible progress. The transaction is structured so that DCI will, post-sale, acquire the remaining 16.65% minority stake in DCI H4 from DCP, with the expected payout to DCP being approximately €2,500,000 plus VAT, dependent on final transaction costs. The related party nature of the DCP transaction is disclosed, and the fairness opinion from Cavendish is cited, though no independent valuation or fairness report is provided. The announcement is clear about the ownership breakdown (83.35% DCI, 16.65% DCP) and the process steps remaining. All major financial figures are disclosed, but final transaction costs and net proceeds are only estimated, not final. No evidence is presented of delays, adverse terms, or regulatory obstacles beyond the standard requirement for tax clearances.

Analysis

The announcement is factual and proportionate, detailing the agreed sale of a land asset at a price above its latest carrying value, with a binding sale agreement and deposit already received. Most claims are realised and supported by disclosed figures (sale price, carrying value, deposit, ownership percentages). Forward-looking statements are limited to the expected completion timeline (within four months), the estimated amount payable to the related party, and a generic commitment to provide future updates. There is no promotional or exaggerated language; the directors' statement of fairness is standard for related party transactions and is not presented as a substantive investment benefit. The transaction is not capital intensive for DCI; rather, it is a monetisation event. The only gap is that the transaction is not yet completed, but the risk is clearly disclosed (pending tax clearances). No overstated or inflated claims are present.

Risk flags

• ●Completion risk remains as the transaction is subject to obtaining relevant tax clearances and fulfilling other sale agreement terms; failure to secure these could delay or jeopardize closing.
• ●The final amount payable to DCP for its 16.65% stake is only estimated, as transaction costs are not yet finalized; this introduces some uncertainty regarding net proceeds and the precise financial impact.
• ●The related party nature of the DCP transaction requires careful oversight; while the company asserts fairness after consulting its nominated adviser, no independent fairness opinion or external valuation is disclosed, which may concern some investors.
• ●The sale proceeds are denominated in euros and subject to VAT, exposing the company to potential currency and tax treatment uncertainties until completion and settlement.

Bottom line

DCI Advisors Ltd has secured a binding agreement to sell its Cyprus land asset for €2,800,000 plus VAT, a price above its latest book value, and has already received a €800,000 deposit. The transaction structure includes a follow-on purchase of the 16.65% minority stake from Dolphin Capital Partners, with the payout to DCP expected to be around €2,500,000 plus VAT, subject to final transaction costs. Completion is targeted within four months, but remains contingent on tax clearances and standard closing conditions. The related party aspect is disclosed and reviewed by the nominated adviser, but no third-party fairness opinion is provided. Investors should focus on the timely completion of the sale, the final net proceeds after transaction costs, and the resolution of any tax or regulatory hurdles. The most important takeaway is that DCI is monetizing a non-core asset at a premium to book value, but execution risk remains until closing is achieved.

Announcement summary

(LSE:DCI) DCI Advisors Ltd announced that it has agreed terms for the sale of land located at Peyia, Paphos, Cyprus, held by its subsidiary DCI Holdings Four Limited (DCI H4), for a consideration of €2,800,000 plus VAT. The latest carrying valuation of the land as at 30 June 2026 was €2,511,000. DCI H4 is ultimately 83.35% owned by DCI through DCI Holdings One Limited (DCI H1). DCI H4 has entered into a binding Sale Agreement and has received a deposit of €800,000 plus VAT. The balance of the purchase price is payable upon completion of the transaction, which is expected to occur within four months, subject to obtaining the relevant tax clearances and other terms of the Sale Agreement. To give effect to a settlement agreement between DCI and Dolphin Capital Partners (DCP) entered into in 2025, DCI H1 has entered into a binding side letter to buy the 16.65% holding in DCI H4 beneficially owned by DCP through an affiliate vehicle. DCI H1 will pay a cash consideration for the shares within 30 days of completion of the sale, reflecting DCP's pro rata share of the net proceeds of the sale, which depending on transaction costs is expected to be approximately €2,500,000 plus VAT in total. DCP holds an interest of greater than 10% in DCI H4 and is therefore treated as a related party under the AIM Rules for Companies, making the purchase of its equity a related party transaction. The directors of DCI, having consulted with Cavendish, its nominated adviser, consider the terms of the transaction to be fair and reasonable insofar as DCI shareholders are concerned. The Company will provide further updates to shareholders when appropriate.

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