A court in Cyprus sentenced Israeli businessman Shimon Aykut to five years in prison on Friday for the illegal development of Greek Cypriot-owned property in the Turkish northern part of the island. The case, among the most politically sensitive in years, highlights the lingering tensions stemming from Cyprus's decades-long division.

Aykut, 74, who also holds Turkish and Portuguese citizenship, had previously pleaded guilty to 40 charges related to the unlawful appropriation of property as part of a plea bargain agreement.

The case underscores the unresolved property disputes that have persisted since the island’s division in 1974, following infighting between Greek and Turkish Cypriot communities and a subsequent Turkish invasion triggered by a Greek-backed coup. Tens of thousands of people remain internally displaced, with their properties either inaccessible or reassigned.

In the north, under Turkish control, Greek Cypriot properties were largely redistributed to Turkish nationals or Turkish Cypriots after the war. In contrast, the Greek Cypriot south appointed state guardians to oversee Turkish Cypriot-owned assets.

Read more: Real estate or takeover? Israeli purchases sound alarm in Cyprus

Aykut's defense cites health, family ties

The court handed down a five-year sentence to Aykut despite alleged concurrent health issues and advanced age, though the charges could have warranted up to seven years.

His defense attorney, Maria Neophytou, requested leniency, emphasizing his deteriorating health, clean criminal record, and what she described as a “subsidiary” role aimed at assisting his son, who managed the implicated companies.

Aykut has already spent over a year in a Greek Cypriot prison. His family and Turkish Cypriot authorities have labeled the case politically motivated, reflecting broader disputes between the two sides of the divided island.

Read more: Lebanon OKs sea demarcation with Cyprus, restarts Block 8 exploration

Background on northern Cyprus development

In recent years, northern Cyprus has seen significant real estate development. Prosecutors stated that a company linked to Aykut capitalized on around 40 properties, constructing luxury housing complexes along the northern coast, an area predominantly inhabited by Greek Cypriots before 1974.

The court’s ruling is expected to resonate politically as well as legally, particularly amid ongoing international efforts to mediate between the divided communities on the eastern Mediterranean island.